Thursday, January 26, 2012

You Have Been Invited To A Soiree ! Happy Thursday !

     It's hard to separate all of the EuroGroup Fin min meetings from the other hastily scheduled  EuroGroup meetings , which meetings are Super Summits  versus Informal Summits . is today a Merkozy special meeting or teleconference or are we waiting for the while smoke to arise after a Merkel - Sarkozy - Monti meet and greet tomorrow ? Do any of these sessions produce anything other than the assurances more meetings will follow ? So let's just have a Soiree - after all , the host of all hosts ( Mr Rompuy ) , is pulling out all of the stops !

   Well , Ben Bernanke had his two day regularly scheduled meet and greet with his Fed Reserve Comrades - and when the smoke cleared , what did we learn ? First , we learned ZIRP will now continue until the end of 2014 ( guess that's when the cows actually come home  ) or maybe what the Fed meant we really aren't ever going to end ZIRP - why didn't they just say the end of 2020 ? In that way , we could have seen ZIRP end , Greece see its debt fall to 120 percent of GDP and Santa come down the chimney all in the same timeframe ! Second , we learned the Fed won't set specific long term goals for employment - well , that's good i guess after we saw how central planning worked out with the Soviets with their five year plans. By the way Ben , fixing the Fed Fund rate at artificially low levels for eternity doesn't lead to productive active , jobs or stability - just saying. Finally , the Fed says its not inflation targeting ( I guess some stuff just happens ) with its QE Lite or otherwise programs . On the otherhand , while not targeting inflation , 2 percent inflation is a " goal " Will the Fed shoot and so , will they score ? Just remember that we're only experiencing that  2 percent inflation consistent over the longer run when you fuel up or buy food !

     And could we truly have a soiree without the latest Greek PSI rumor de jour ? Today " news " is the private investors will now accept a 3.75 coupon ( down from their no less than 4 percent demand ) all would be joyful - except the participation of the public sector creditor ( including the ECB ) seems to be a pre-condition. So while Germany and the UK Bourses are rip roaring presently , i expect this will be dashed as time goes on. Stay tuned and enjoy the show while it last ! One news item below and your invitation to Rompuy's Soiree set for below .....

09.58 Now I'm confused. After reports that the ESM won't be on the agenda at the upcoming EU summit, here is EC President Herman Van Rompuy's invitation letter to the event, which states that it is: