Yesterday as we watched the theater of the absurd between the Government leaders who barely knew the difference between a CD and a CDO and the sharks of Wall Street, the debt markets of the Greek Bond Market were collapsing. The ratings agencies after being burned in the late to the game ratings downgrades of the aforementioned CDOs were jumping into the mix on the latest domino to fall in the bond markets of Euro land.
Stocks seem to have noticed as the so called great news on the economy and with companies reporting earnings, it didn't matter yesterday as stocks dropped over 200 points. Maybe it was the full moon. Whatever it was, yesterday seem to mark a tipping point in the financial markets and it makes todays FED meeting even more important. Oh it is expected that Ben will leave rates low for as long as it takes, the debt markets will tell us when this policy combined with the rediculous spending will force our bond market to thrust rates upward like the Greek bond market did yesterday. This morning it is spreading to Portugal. Can we be far behind? I think not. We shall see if the Government leaders stop and take notice from their public flogging of Goldman Sachs long enough to stop the credit card mentality that is now the US goverment. Buy today and pay tomorrow by robbing from our children still seems to be the choice they are making. Sad, really sad!