MarketWatch: 10 reasons the crisis isn’t over

[marmar]

.....(snip).....

News out of Europe says they’re working on a fix to resolve the crisis there. Reports here say the holiday season may be off to a strong start. Sales on “Black Friday” may have hit a record.

.....(snip).....

But here are ten reasons to be skeptical. This so looks like a dead cat bounce.

1. The market was due a rally. The Standard & Poor’s 500 index SPX +2.92% had fallen seven days in a row. But equity markets never fall in a straight line. After a long run of down days, people who’ve been betting against stocks by selling short get tempted to lock in some of their profits by buying stocks back. Others who want to buy stocks see sharp falls and get tempted to “bargain hunt.” This inevitably produces quick, sharp rallies. This one may last a day, a week, a month or more. That doesn’t mean a thing about long-term trends.

2. The report from Italy, one of the items sparking bullish sentiment, has already proven a crock. A news report there over the weekend said the International Monetary Fund was working on plans to step into the European debt crisis with a gigantic $600 billion bailout. The report has been dismissed, on the record, by an IMF spokesman.

3. The reports from northern Europe are absurd. Markets are excited by reports that Germany, France and Brussels are working on a new “bailout” plan. But look at the details! Under the proposals, the European Union will help insure the debts of countries in crisis, but in return it will be given veto powers over the budgets of the countries in question. This idea can’t survive 10 seconds of serious thought. The Greeks are rioting over budget cuts proposed by their own governments. What possible chance is there that they — or the Italians, or the Spanish — would accept austerity measures imposed by Brussels? ...........(more)

The complete piece is at: http://www.marketwatch.com/story/10-reasons-the-crisis-isnt-over-2011-11-29?dist=beforebell

[saras]

1. Real reason one - nothing whatsoever has been done to address the systemic problems....

The machine is broken, fatally.

We should be more concerned about getting it off the freeway, out of the way of causing fatal accidents, than with trying to salvage whatever scrap metal we can get from it. That can wait.

[SixthSense]

3. The machine isn't broken

It's doing what it was designed to do - extract every bit of value from your labor to feed the insatiable appetites of the 1%.

The problem is not that the machine isn't working, it's that it IS working. We are using the wrong machine - the one we got now may as well have been designed by Dr. Kevorkian.

[Javaman]

5. I would trust Dr. Kevorkian over these guys

at least Dr. Kevorkian was up front about it all.

the machine we are using now was sold to us as one that would help us.

[Huey P. Long]

2. kr -more pain ahead. Look out! -eom

[xchrom]

4. recommend