This is good news?…not it you judge a book by its cover...

This cover says exactly what I posted yesterday, financial engineering at its level best of its worst. These guys fabricated lower yields, fabricated data and fabricated the leverage with which to create the illusion. They made this whole thing up. Ususally exceeding expectation is a good thing - NOT IN THIS CASE.

The banks that borrowed, borrowed from an already insolvent ECB and with their appetite, confirmed just how desperate everyone involved really is. What’s more, is that this loan facility just makes everything worse, with the exception of the ONE DAY bounce we got…and that, as you can see, will not be a lasting legacy.

The dollar responded by testing the support level in the neckline of the Cup and Handle pattern and came down to the lower trend line as marked. Now the ridiculous policy of lending bankrupt institutions money that they can not and will not be able to repay will be justly rewarded.

Risk assets are now likely toast and the weekend charts that I posted are still 100% on track though they may have to wait for this holdiay week to pass. Of course, the equity volatility was higher than I would have liked but, all in all, NOTHING has changed and NOTHING has been FIXED.