"...Although many details are yet to be resolved, the bulls got everything they
wanted except endless printing by the ECB. However, the sad fundamental
situation remains unchanged
Instead of the rumor mill of potential actions working to lift the market 24 hours a day for three straight weeks, it will be up to the EU to make the plan work. However, the plan won't work because of point number one above: not a single structural problem has been solved.
Although this rally may run for a while longer on fumes of past rumors and blind hope, it will eventually wear itself out..."
at http://globaleconomicanalysis.blogspot.com/2011/10/good-news-for-bears-torture-by-rumor.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29
- No structural problems have been solved
- Banks most assuredly need more than 106 billion in recapitalization efforts. The idea that French banks only need to raise 8.8 billion is preposterous.
- No investors in their right mind will fund Greek and Spanish banks to the tune of 56.2 billion euros
- The haircuts were not voluntary
Instead of the rumor mill of potential actions working to lift the market 24 hours a day for three straight weeks, it will be up to the EU to make the plan work. However, the plan won't work because of point number one above: not a single structural problem has been solved.
Although this rally may run for a while longer on fumes of past rumors and blind hope, it will eventually wear itself out..."
at http://globaleconomicanalysis.blogspot.com/2011/10/good-news-for-bears-torture-by-rumor.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29
