Home > Uncategorized > 2011/08/19: QuickPost: DAX Activity versus Others Very Interesting

2011/08/19: QuickPost: DAX Activity versus Others Very Interesting

Very interesting this morning that other equities were holding up reasonably well, but DAX slipped to new low below 5,500 area. Not really much of a surprise in light of the most negative drivers of the equities break being the various Euro-zone influences, and it likely means the low 5,300 area DAX support tested this morning will be critical into the weekend and early next week as well.

Wonder what markets will need to hear out of Europe to repair the damage from their dithering? What we know is that it’s a Jerry Maguire Moment for the Europeans after a lackluster Merkel-Sarkozy meeting… as the markets are continuing to scream,Show me the money.” Their classically dirigiste approach is no longer working: the ‘word’ (that they are committed to addressing the problem) from on High without and commensurate meaningful ‘action’ (EFSF funded and actually buying bonds) just doesn’t cut it.

Thanks for your interest.

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  1. christopher maytum
    August 19, 2011 at 11:41 AM

    Show me the money – IF you have any!! Only you guys are in the enviable(?) position, where you can print it like confetti and, if you could afford the gas (print some more), drop it from helicopters, on all four corners of the globe.

  2. August 19, 2011 at 12:59 PM

    Good point, yet all the more reason S&P was right to downgrade based on currency degradation… and Gold also says that ultimately the only way out of the ‘debt trap’ is to reflate.

    But watch that ‘all four corners of the globe stuff” as US vox populi now very sensitive to all the money that has gone to rescue foreign banks (even if that protected US banks’ CDS positions). The ‘JM Moment’ more so about the Germans paying up on what is a deferred tax on their (cheap euro assisted) mercantilist regime.

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