Tuesday, December 13, 2011

The Morning Call Second thoughts

Not much on which to comment. There were no economic stats reported; and there was little from the either the EU or US political classes. There were comments out of Europe on the schedule for changes in the fiscal union; but that was it. I think most of the pin action was a function of buyer’s remorse from the run up in stock prices Friday.

Bottom line: my opinion on the ‘new’ EU plan for solving its liquidity and solvency problems hasn’t changed--it is a weak ‘muddle through’ strategy and likely to be challenged by the bond vigilantes in the not too distance future.

The EU deal is unworkable (medium):

More on the current state of the shadow banking world (medium):

The latest from Doug Kass (long):

The latest from John Hussman (long):

Six worries for 2012 (long):