Sunday, July 1, 2012

EU Summit: Buying time till next crisis?

Review of the consequences of the European summit last week, in which the leaders agreed on a series of measures in an attempt to curb the debt crisis in Europe, noting that although the solutions proposed at the conference - the major problems on the continent remain. 
Europe has a very great debt, and will continue to deal with the need to reduce debt over time; the weekend program primarily buys them time until the next crisis.
The point of light is that the first time we see confirmation of EU leaders, despite the determined opposition of Germany till to date, to use funds extraction, to support the markets.
This is a very significant step in this respect, and there is a positive surprise to markets , since the results are good expectations. Short term, therefore, it is likely that markets will continue to respond positively to this change. "
However, in the end that decisions made at the weekend did not include a commitment to mutuality, it opposes Germany: "there is no consensus on the Euro - Bonds, there is no consensus on the guarantee of the public's deposits in banks, and there is no agreement on the establishment of the debt Redemption Fund, in order to consolidate the debts of countries (those above the 60% debt to GDP ratio) and to spread the payment for them a long time.
In addition, no details as outline the execution of various processes:
* From where will come the money to help banks that need it?
* From where will come the money to purchase bonds of countries if we even get there?With many efforts to fix Europe crisis, last 2 weeks Market behavior was very hard to forecast,
 I did it by the help of some stock forecast methods for Short/Medium/Long term.
Below are links to the articles on the issue:

IMO we are going to have GREEN S&P500 next week.