2011 'joey' awards thursday, page-6

Hi All.
Great post Pisces.

The XJO had a good bounce today. Cant complain about a 100pt rise. Where are we at now? Well EU is being backstopped by the ECB via the banks. Prob to the tune of a couple of Trillion $$$ by the time they are done. Dont worry tho - thats US $$ which arent worth so much nowadays.
Now if the banks use this money to strengthen balance sheets/write off bad debts/non performing loans then that will be good for the banks and introduces a fix for them.
Next prob - Soveriegn debt/borrowing requirements.
If the banks use this money thinking they can get a great return by purchasing gov bonds, it gives EU gov's a couple of years of funding to help sort their sh#t out but this will still require extreme budget/austerity measures which is bad for the markets due to recessionary implications. THese funds will help to cover gov requirements coming due in 2012 but if the govs dont use this opportunity to roll out reforms in tax/social/business investment areas to strenghten countries, then it will have been an expensive exercise which has the potential to truly destroy the worlds financial institutions.
As i said yest. this is all a step in the right direction to clean up the solvency/credit issues BUT I should have added that in doing all that is necessary, stock markets wont benefit for a while. Recessions arent goood for stock markets. forced recessions (ie knowing its coming) at least give a chance for investors to protect their investments.
I didnt see anything today that changed my view that the downtrend still intact and capitulation still hasnt happened. Still great for s/t trading tho. :)
Cheers all