Sentiment Is Finally Extreme

Despite the huge drop in the past week many were looking for a bounce. Until this morning. Sentiment seems to have taken a turn for the worse this morning. There is heavy put buying and lots of gloom and doom. Sentiment might be extreme enough to lead to a Thanksgiving rally.


Anonymous said...

Angela Merkel continues to squash any action in terms of widespread ECB buying or even Eurobonds. I would think she is not stupid and has been made aware of the dire circumstances. So what does she know that we don't know? I'm not seeing what would make her change her mind if not now. Any insight Tsachy?

Tsachy Mishal said...

I think Eurobonds will not work. If nobody wants to buy EFSF bonds than why will they buy Eurobonds. The only option is to use the ECB to fund one of these schemes.

She seems determined not to let the Eurozone fail but shows an equal determination not to use the means necessary to fix the problems. I think she will ultimately choose to save the EU. the quaestion is how much pain do we need to take first?