Today brought more wonderful news for investors who think a rising stock market is their birthright regardless of poor macroeconomic fundamentals. Central banks decided European banks need indefinite cheap dollar funding. U.S. equity markets levitated once again in a knee-jerk escape from reality.
Unforutnately for the legions of day trading fools and hedge fund idiots who bought into this nonsense, reality always comes back with a smack in the face. The reality of Europe is that the PIIGS can't pay their sovereign debts, European banks will become insolvent when these losses are realized, and U.S. banks will become insolvent when the melt value of their European exposure drops through the cellar. I'm not dumb enough to buy into this market.
Unforutnately for the legions of day trading fools and hedge fund idiots who bought into this nonsense, reality always comes back with a smack in the face. The reality of Europe is that the PIIGS can't pay their sovereign debts, European banks will become insolvent when these losses are realized, and U.S. banks will become insolvent when the melt value of their European exposure drops through the cellar. I'm not dumb enough to buy into this market.
