Thursday Failure For the Euro – $1.22 or Bust!

Part of this was caused by the decision (or non-decision) by the Bank of Japan to hold-off on their anticipated asset-purchase program.  That sent the Yen back to 79.25 to the Dollar (stronger), which itself hit 84 in early trading and took our Futures down over 100 points from yesterday's silly stick-close which, as noted by Dave Fry, was the result of more QE rumors following the release of the Fed minutes at 2 pm. 

Of course, all this panic out of stocks and into the Dollar (have I mentioned Cash is King lately?) is just perfect on a day when the US has $13Bn in 30-year notes to peddle (1pm today) and yesterday we had a new record for selling $21Bn of 10-year notes for just 1.459% – that's a NEGATIVE yeild to inflation by any measure.

So now "investors" are PAYING the US to borrow money.  That is just fan-friggin'-tastic and hopefully we can refinance our current $16Tn in debt and get paid to borrow the next $16Tn as well.  What a way to "fix" an economy, right?

"The markets have been fairly disappointed by central banks' timid policy response," said Ian Stannard, senior currency strategist at Morgan Stanley. "With many questions still surrounding the Greek situation and the German court's decision on the constitutionality of the European Stability Mechanism, we do not see room for the euro to make gains over the next several weeks."

IN PROGRESS