Enviado: 26/10/2011 13:01Pela (in)competência dos políticos europeus acho que o que esta em cima da mesa é option 2.
European Debt: Day of Reckoning
Stocks joyously rallied the last few weeks buoyed by a growing belief that European leaders were moving towards a comprehensive debt solution. That solution is supposed to be on display Wednesday. Yet activities from Tuesday cast grave doubt on whether a meaningful plan will be forthcoming. With that stocks sold off awaiting what will unfold on Wednesday.
Option 1: No deal is announced and they postpone til some future date. Likely outcome = stocks tumble.
Option 2: Half-hearted compromise struck in the 11th hour (kind of like our early August debt ceiling deal in the States). Likely outcome = stocks tumble given concerns that it’s not enough to contain the problem.
Option 3: Comprehensive deal is unveiled to the delight of investors. Likely outcome = stocks jolt higher. And in time press above the 200 day moving average. May even attempt run at 2011 highs.
We'll know the answer soon enough.