As one wakes up this morning looks like everything is just hunky dory again with the Dow futures up over 200 points. Let's all party and pretend that all is well and no problems to be found. Let's see what is making this a Chelsea Morning.
We have Italian soccer players doing ads urging people in Italy to place their money in Italian bonds auctions this morning. If the high interest rate does not get you interested this certainly will. No need to invest in those pesky private stocks and such. Why we have waiting for you 7.45% interest rates on government guaranteed debt almost 700 basis points above what you can get in US Treauries. Ignore that German bonds are 2.35% or so too. Also ignore not one single European country can sell bonds for less than 5.0%. Can an ad from Obama be far behind urging Italians to buy their own bonds?
We have the emotional lift that Americans went out and bought big on Black Friday, encouraged on by the media in wave after wave of promotional news items. Today Americans will continue that binge with some more media pushed and inspired Cyber Monday sales while they sit at their at work office desks. Never mind that all this buying is on credit cards and the bill will come due in January. No one is saving anymore and why should we since there is happiness all around since things are back to normal. I do wonder how media newsroom types look at themselves in the mirror knowing they have thrown all media pretense of non bias to the wind pushing these buying sprees. When I was in the media we actually asked retailers to PAY for ads to get people to stores. I suppose that is just so !990's now.
We all are even more thrilled by the news the IMF might, just might, back some Eurobonds. Did I not just post about this last night? Let's see we got some US taxpayer money coming to the rescue again by taking some European toxic debt, packaging it as AAA and behold we got Eurobonds! That should allow Europe to keep on it's social spending spree going for awhile longer just past November 2012 and nary a worry about who pays the bill. $800 billion of US taxpayer money borrowed from the Chinese and re-routed straight to Europe. Obama needs reelection and golfing in Europe is his originator fee.
Let's also celebrate the new GM electric car that the greenies love. No one should consider that the batteries catch fire and burn up the car. The US government, which is the primary owner of GM, let us know this morning that there is no "undue risk" from one burring up in this new car. Just like I expect that we soon will hear there is no "undue risk" from the coming 55 MPG vehicles, including trucks and SUV's this time, mandated by the greenies via the EPA. You read that right Obama is moving oversight of the Cafe standards from the Auto Safety crowd in government to the EPA. Certainly it is more important to keep some miniscule molecule of carbon dioxide from emitting UNDUE RISK to the enviroment than to save one human life. Thin aluminum doors will give way to cardboard doors. Makes me feel safer already.
The way things are going even I might go buy some gold. Can you imagine how much gold could be sold if some one could come up with a way to sell "gold as the new green?"
I will hand it to those "feelings" Baby Boomers we now operate everything, including the financial markets on emotion and avoid actually thinking about our buying and investing. Yes, my friends it is indeed a Chelsea Morning.
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