As promised, here is today's Wake-Up Call. (Been a little busy this morning on the story about the University of Maryland cutting 8 sports teams) Be sure to forward to a friend and sign-up for your own FREE subscription to Wake-Up Call.
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Super Committee Looks For The Secret Santa
By: Kenneth Polcari, Expert Contributor
So – in the US - FAILURE was the only option!
They took the easy way out. They abrogated their responsibilities to the electorate, to the country and to investors around the world. And for this they should be rewarded? And now they are trying to convince us that there is a positive in all of this? Are they kidding?
They should look across the pond - Spain had elections over the weekend and guess what? The Spaniard’s “threw the bums out!” The conservative party (center right) was ushered in – in a commanding sweep, a resounding scream - suggesting the real frustration and anxiety of the populace.
This is the 3rd time in 3 weeks that the European debt crisis has seen the fall of a government. Washington DC should be paying close attention.
As if that is not enough – Moody’s stands up and threatens the pristine AAA credit rating of France citing worsening mkt conditions for the Euro zone. (Note – they did NOT cut – they re-iterated that the worsening conditions and weaker growth outlook are signs of trouble ahead)
No matter that France has some 500 bil Euros worth of exposure to European debt – (309 bil of Italian debt, 112 bil in Spanish debt, 41 bil of Greek debt, 24 bil of Irish debt, 19 bil of Portuguese debt.) As yields continue to rise in the zone – France has to be considered at risk because of the massive commitments to the other high risk countries.
So – you see – if the bond market has decided these countries represent high risk, then interest in rolling over new bonds will come under pressure, making the ECB the only sovereign bond investor. So then – How can the ECB that does not have power to create currency support bond auctions of these large Euro zone countries? And for how much longer?
On Friday – stocks traded narrowly around the flat line with neither side willing to make a bet on what would happen over the weekend. No bond auctions in Europe, Merkel and Cameron had a nice lunch and put on the happy faces for the camera all while Angela was reprimanding David for sticking his nose into the Eurozone currency crisis – after the Brits refused to join the common currency.
Cameron had been quoted in an article in “Die Welt” – blaming the weakening UK economy on the deepening Euro debt crisis and the inability of those leaders to get it under control. So as you might imagine – the Germans were a bit put off.
Is the Euro zone weeks away from implosion? Will the Fed drive the dollar lower to help the Euro go higher? This crisis IS NOT going away…hello? The keep kicking the can down the road, and the mkt keeps biding time…not happening much longer.
And the Super committee? Again failure to address the issues; and just think – is $1.2 tril even going to make a difference in a deficit that just broke $15 tril. They needed to do something dramatic, they needed to lead…they did not.
Mkts around the world all lower overnight – In Asia – Japan -0.2%, Hang Seng – 1.8%, Shanghai – 0.4%, ASX -0.4%, European mkts all broadly lower too. DAX -2.4%, FTSE -1.8%, CAC 40 -2.4%.
Re: S&P 500 - We have broken the 50 DMA support line at 1200 and will struggle to find near term support depending on the interpretation – the path of least resistance is lower. If we get a significant break then watch for institutions to put some money to work; but with the end of the year only weeks away, many have already closed the books on 2011.
Take good care –
Mostaciolli Rigate and Shrimp in a Cream Tomato Sauce
This is a relatively simple dish to make – yet it sounds a bit more complicated….consider serving this dish at one of your holiday dinner parties…it present s beautifully on the plate and lets your guests think you are a master chef!
For this you need: butter, chopped garlic, 1 ½ lb of cleaned, deveined large shrimp, chopped shallots, can of crushed tomatoes, ¾ cup of heavy cream (room temp), chopped fresh basil, 1 egg yolk, parsley and the Mostaciolli Rigate.
Bring a pot of salted water to a rolling boil -
Begin by melting about ½ stick of butter in a lg sauté pan (med heat) – add garlic and shallots and sauté for 4 mins or so…..careful not to burn….Now add the shrimp – cook on one side then flip.
**At this point – put the pasta in the boiling water and allow to cook for 8 – 10 mins**
Now add the crushed tomatoes and cook for 3 or 4 mins….fold in about ½ cup of heavy cream and the fresh basil….Next beat the yolk, add the rest of the cream to the egg and introduce into your shrimp tomato sauce…..stir quickly. You do not want the sauce to boil……
When the pasta is done – strain (reserving a mugful of water) and return to pot. Add back just ½ a mug of water to remoisten….now add in ¼ stick of butter and stir to coat well.
Pour ½ the shrimp and sauce over the pasta and mix well. Serve in warmed bowls and dress with a ladle of sauce on top. Fresh toasted garlic bread is always good with this meal.
*If you prefer – you can serve family style in a large platter