Friday, June 29, 2012

The Latest Mini Rally Due to Euro Hopes



Brief Market Commentary
6/29/12
On my way to 12 year old Son’s golf award ceremony (the next Arnold Palmer in the making).
Another mini rally is at hand. The latest European Harry Houdini financial-move is based on creating new debt to replace old debt through the European Stability Mechanism, or ESM. The question of who pays for this supposed non sovereign route of rescuing banks through a European Bank Supervisor (who would need to be chosen by the end of the year remains to be seen). The broader issue of pooling debt remains to be resolved as well. For now, the market is seeing the glass as being half full and is rising. But let’s get something straight right away: The ESM is not a magic money machine
Read More Here: http://www.certifiedassets.com/inv/news/2130-2/

No comments: