If you had any doubt there's panic in them thar streets, today's final hour should allay all uncertainty. A story from the London Guardian (appearing just prior to the print edition being put to bed) announcing unconfirmed rumors on an agreement between France and Germany to leverage the EFSF to $2 trillion euros — "The Geithner Minimum" — lit the short squeeze fuse to boost the hopelessly insolvent 5-6%, and the rest was, as they say, history.
These folks might better have hired sky writers to paint "We're F'ed!" It's that obvious. Fitting, though, a third wave of a prospective rising wedge (indicating underlying exhaustion) forming the fifth wave of five waves up from Tuesday, October 4th bottom...
Of course, this is but one prospective view. Yet with deadline fast approaching for a new "plan" to pretend the trans-Atlantic banking system is solvent, and subsequent letdown quite likely, the above possibility seems reasonable enough.
Add no essential change in the disposition of portfolio insurers (see $CPC and $VIX), and this amidst what readily appears a voracious need to raise capital (evidenced by extraordinary daily market swings), and there's every reason to believe chaos looms.
As for there being no shortage of analysts who look toward common stocks and call them "cheap," virtually none questions why this is so. The banking system is insolvent, and amidst a mountain of [unpayable] debt accumulated in the build out of a private sector credit creating machine equipped with an infinite multiplier — Adam Smith's Leveraged Ponzi Scheme (a.k.a. "structured finance") — stocks are toilet paper.
So, for your edification the role played today by a media whose moral bankruptcy is on par with the financial condition of institutions who help it meet its payroll...
Guardian: France & Germany Agree to Hike Fund
Not So Fast on Euro Bailout, Guardian: Hobbs
Markets Stage Late Day Rally
EFSF Fund & Europe's Bailout
Stocks Gain on Euro Zone Rescue Fund
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