It’s Time for Big Solutions
The time has come for the world to realize that Merkel and Bernanke cannot solve the problem, no amount of funny money would be enough. In Europe a reckoning has to include rewriting everything and putting teeth into the Euro agreement. In the US, a start would be to implement something like Simpson- Bowles. Everything has to be looked at, pensions, retirement age, spending, and taxation. No more free loading, no more unpaid for wars, etc.
In the meantime the stock and precious metals markets are following a la-la land scenario. We remain short stocks and will add to our positions if the top of the trading range is hit during the regular session, it got close in overnight trading.