Senate Majority Leader Reid, a Nevada socialist, announced yesterday that talks have broken down in order to reach an agreement that would prevent the U.S. from bungee jumping off the fiscal cliff without a cord. Those who prefer a technical analysis terminology may understand the following description better. Fiscal cliff talks have formed a rising wedge formation and now trade at the top of the formation. MACD shows a negative divergence while RSI is trading in extreme overbought territory and alos formed a negative divergence. Volume on...
Italian Prime Minister Mario Monti and Spanish Prime Minister Mariano Rajoy are meeting in Madrid in order to discuss how to proceed with the looming bailouts of their countries. Super Mario, President of the ECB, was very proud to announce his bond buying bonanza nobody really wants or asks for it as it is tied to severe austerity measures and the countries first need to beg the ESM and subscribe to their conditions before Super Mario is allowed to take Browsers Castle. Monti as well as Rajoy have both rejected new austerity measures as...
The conservative Liberal Democratic Party or LDP won a landslide victory in Japan and Shinzo Abe will return as prime minister of Japan. The LDP ruled Japan for over 50 years until an election loss in 2009. Japan, which continues to suffer from the fallout of financial bailouts in the late 90’s, thought a change in leadership would ring in change. Flashback: The U.S. has followed into the footsteps of Japan when the elected change in 2008 which made the situation worse. Japanese voters were smart enough to allow change create bigger...
Italian central bank governor Ignazio Visco told Italian newspaper La Stampa that Italy will navigate through the storm without assistance of the ECB and its Outright Monetary Transactions or OMT’s. While he admits that the next few months will pose quite a challenge for Italy, the world’s third largest debtor nation, he believes that Italy witnessed the height of the debt contagion. Italy is in the midst of a recession and hammered by political uncertainty after Mario Monti announced his resignation and Silvio Berlusconi...
The U.S. is heading off the fiscal cliff and uses the last few days to accelerate its pace. At least they want to make the fall and crash as enjoyable as possible. Most market participants around the globe are already aware that it is too late for any agreement and that the U.S. has no other outcome than to bungee jump without a cord. In the final week before Christmas Speaker of the House of Representatives Boehner made the Obama White House an offer on taxes. Boehner and fellow Republicans would allow tax cuts for the One Percent to...
