Remember Road Runner? Always being chased like a pot of gold by Coyote.
Coyote was always enthusiastic that he would get his dinner. He never did though. So often he would chase Road Runner off a cliff and then appear to still be running for a few yards in thin air. He would stop, look down and crash. This is where we are with the Western stock markets. Looking down into the ravine. Ready to crash for there is nothing holding it up.
Coyote is hoping an Asian do gooder will throw out a line. But alas, the line is attached to the Chinaman's foot and is going to come crashing with him.
Apart from gold and the Swissie, there ain't much else out there of substance.
After each recession there is a new thing to pull us out. In the 80s it was the Reagan Thatcher love affair and structured products. In the mid 90's it was the end of communism and the beginning of the dot com. The 00's heralded cheap debt and sleeping regulators. So what about the 10s?
Inflation hopefully. We need strikes and defaults and new currencies. We need downgrades and upgrades (Isle of Man is a AAA?!). We need new unregulated sign your life away stealth funds. We need something because we are starting to fall ...
China hacks into America and finds nothing useful (telegraph)
China slags off America about its debt and gets silence (bloomberg)
Dow is the new Coyote (reuters)
Obama to be the new CEO of Goldman Sachs after all.