Our "General Montgomery" Treasury Secretary will be three days in Europe starting tomorrow apparently lending EU leaders his expertise on how to deal with criminal rating agencies pissing on sovereign borrowing capacity. Just so we're on the same page, acts of extortion are not conducive to extending the let's pretend the banking system is solvent game. Not even a Treasury Secretary who might go so far as whisper risk of yet another terrible war embroiling the continent, this in the fallout of financial calamity were Europe's banking system to collapse (as it inevitably must), is likely to grease the gears at the ECB.
Geithner, whose failure to influence German policy was proven as recently as a few weeks ago, could possibly achieve but one thing: detonate the EMU. If anything, the more vile the threat Geithner apparently must deliver in person, the sooner must come inevitable schism. Resistance to the very real threat present today with Europe's rapid movement toward fascism must soon explode. There are just too many bad memories of bank-owned thugs running roughshod over the neighborhood.
Today's weakness suggests the insane asylum trade has reached its end. If there's one more lift, it likely will be the last before outsized gains of recent days evaporate.
Not one thing technically over the past week has budged in a direction defying a dire, near-term outlook. This is no minor feat! Rather, it is entirely foreboding.
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