From The Mess Of Headlines Today

The only logical conclusion is that we are further away from a solution or agreement in Europe than we have been in a long time. The “Grand Plan” has failed and this time, it is not a matter of creating “bigger and better” versions of prior plans, they need to do something new. Germany in particular will not relent on “printing” until a real, credible plan that can actually be implemented is on the table. I think they are weeks away from that. In the meantime expect support for European sovereign debt to erode. Italian and Spanish debt are dangerous, but as shorts take some profit there at these yields, they will step up positions in Belgium, France, and probably Germany.

The best thing Europe could do is impose some old school “children” rules on the politicians, finance ministers, and various government employees. They should be told (1) Children are meant to be seen, not heard, and (2) If you have nothing good to say, then don’t say anything. There is enough bad news out there without people like Mersch taking the time to speak. Would it be that hard to say Draghi is only one allowed to comment on ECB at this stage? I’m bearish and thankful to Mersch, but really, what was the point of that?

Have a great weekend and enjoy the holiday, and get some rest, because this is likely to be a December to remember.