Plan A Summit And Plan B Summit?

Posted by on Oct 20, 2011 in Uncategorized | No Comments

The market is rallying on a new summit and a new joint statement.

Read the statement closely.

If Plan A was going to work, wouldn’t that be done this weekend? If you were moving to Plan B wouldn’t you want that closer to the leader meeting?  Ministers of finance may be able to make positive announcements and wait a week for leadership approval but they certainly cannot make a negative announcement. Only the leaders can do that. Second summit explains a shift to plan B from plan A at least as well as it would explain even more money.

Remember the day the president scheduled a news conference for after non farm payrolls and the market spiked? Everyone thought he would only speak if it was a good number. The number was horrible and he had nothing useful to add.

Assuming these statements and an extra summit are positive seems extremely dangerous.