1. First of all let me say I bow before all the heroes of 9/11 and hope the people who are responsible for this – I do not speak of the 30 Arabs who might have done the execution partly – rather a more evil bunch of people who were not held accountable yet – have a special place in hell waiting for them.
The Euro crash keeps pickung up speed and we took out strong support at 1.37 and the moronic German politicians do speak the truth at the wrong time and place and drive the situation to the edge of a collapse. 1932 happens once again as the initial crash of 1929 took a real depressive stage after the collapse of the Austrian bank claims Bernanke. I do not agree but still the situation looks quite the same.
SPX takes out the support in futures in overnight trading as we reach now the ugly part of the wave 5 down which could go as low as 1050ish. We will have some very ugly Astro patterns in the later part of the week and high volatility as Venus enters a T-Square with Uranus and Pluto and to makes things worse exactely at that time frame Pluto goes stationary which increases the effect. That should set a capitulation low for now – not the ultimate low which will force the FED to come up with QE3 and even the ECB may be forced to come up with a QE version. As an Ex Goldman partner will take over the ECB 1st Nov this call can be taken serious.
Goldman Calls For QE In Europe: “How Far Can The ECB Go In Using Its Balance Sheet. The Short Answer Is: A Lot Further”
Even as the eyes of the world are currently frozen in a spot in time from ten years ago, and Wikileaks is making doubly sure of this by releasing the entire record of Metrocall pager (remember those?) intercepts starting at 9:55 am on 9/11/01, the world itself continues onward, and especially those who determine its global policy of “Prevention of Harm to The Status QuoTM” are busier than ever this weekend. Chief among these is and always has been the one financial firm which has infiltrated “sovereign” decision-making more than anyone in history: Goldman Sachs, whose alumnus, incidentally, is about to replace Jean Claude Trichet at the helm of the world’s largest and most undercapitalized central bank (yes, a central bank can be undercapitalized – read on). Which is why the following note just released by Goldman’s Dirk Schumacher is of particular attention. Mere hours after Goldman economist Sven Jari Stehn said that FOMC “easing at the September meeting is very likely—around 75% according to our model”, Goldman is now taking on European monetary policy, and specifically the question of further quantitative easing, across the pond, where printing money has always been a far more touchy subject than in the US, courtesy of the German experience with hyperinflation. As a result, the key line in the Schumacher note is the following: “How Far Can The ECB Go In Using Its Balance Sheet. The Short Answer Is: A Lot Further.” To be sure, this is not surprising: after all Zero Hedge first predicted that following the latest market trouncing on Friday, in the aftermath of the ECB’s admission of failure on Thursday (who can forget Ze Price Stabeeleetee), see “ECBCTRL+P: The Next Steps In The European Implosion“, but we are nothing but a simple blog, which predicts what will happen but certainly does not set policy for a corrupt and failed regime. That’s Goldman’s job. And what is stunning is the brazenness with which it does it now. To sum up: to Goldman both the Fed and the ECB have to engage asap in yet another episode of bonus-preserving currency debasement, middle class be damned. And, we have very little doubt, they will.