Back to Rationality   | Dec 12, 2011 | 6:48 AM EST  | Comments
• Comment   • Print Print   • Print  If everyone was so happy
with the accords on Friday, who is selling today? I believe
there were two satisfied sets of customers last week, those who
were so glad that there couldn't be a Lehman with all of these
levels of support, and those who figured, "Now we'll see what
the IMF will do to help the sovereigns."  The first set of
buyers should still be happy. The second set buyers sees gold
down today, sees the euro down and says, "OK, the IMF isn't
going to do anything, and all that happened is that we saved the
banks for now but the sovereigns are going to drown into their
own debt."  In other words, those who fear the destruction of
Europe by bank are still sanguine. Those who fear destruction by
sovereign are panicking and selling.  Of course the third option
-- profit-taking -- is never considered anymore because of the
silly "risk-on / risk-off" thinking that pervades a handful of
analysts but almost a