Tuesday, May 11, 2010

"Unexpected" Decline

Wow, that was fast!  The Euro is already trading down, as are world stocks.

World stocks and the euro dropped sharply Tuesday as the massive relief rally triggered by a $1 trillion plan to contain Europe's debt crisis fizzled out amid concerns that the plan's backup loans won't remove concerns about the long-term solvency of indebted countries.
In Europe, the FTSE 100 index of leading British shares was down 108.43 points, or 2 percent, at 5,278.99 while Germany's DAX fell 73.19 points, or 1.2 percent, to 5,944.72. The CAC-40 in France was 75.32 points, or 2 percent, lower at 3,644.97.

Not enough toothpicks in the bailout?  Who could have seen that one coming?


  1. It's like watching a slow-motion train wreck, isn't it?

  2. I don't even want to think about it :-(

    Your picture is perfect, however...

  3. Gold is now rising against all assets, in all currencies.


  4. Maybe I should buy some more gold.

  5. Lady Red...your picture could be any one of my classrooms in elementary school...in the 1940's & early 50's.

    Lewy14....a movie I liked, "Empire of the Sun" directed by Spielberg, held that the most valuable thing on earth is the potato. Clavell's novel "King Rat" told a similar story.

    How soon before we, too, value a potato over gold?

  6. Gosh, I haven't read "King Rat" in years. Powerful book.

    I don't have mountains of gold, or even mountains of potatoes, but we do have a greenhouse, a woodstove, chickens, ammo, and fishing poles. If things keep spiraling downwards, we'll be richer than George Soros. Imagine that! :)))

  7. Ari, Gold is still rising against Cows. Gold to Cow chart.

    Once this trend reverses, and food rises against all numéraire - it's simple. We're f**ked.

  8. Oh noes, the dreaded "dead cat bounce" formation...