November 18, 2011 at 05:00 AM EST
Dangerous Liaisons and Dirty Laundry
Have you seen the six-month price chart for the Dow Jones Industrial Average , the Standard & Poor's 500 Index , the NASDAQ Composite , the U.K. FTSE 100 , the German Xetra (DAX) , the Hong Kong Hang Seng Index , the French CAC 40 , the Milan FTSE MIB , the Australian S&P ASX 200 , or the Shanghai Composite Index ? I'll make it easy for you. If you haven't seen any of them lately, check out one of them - any one. It doesn't matter which one, because - really frighteningly - they all look remarkably alike. Talk about dangerous liaisons! Fitch Ratings warned Wednesday that contagion from Europe's debt hangover could seriously impact U.S. banks . That's amazing. How did they ever figure that out? And so quickly! Of course, that's not new "news." So why did U.S. equity markets, which were enjoying a reasonably positive day, turn tail and sell off hard into the close? Because the truth is, regardless of incipient talk of some U.S. decoupling from global equity markets (yeah... good luck with that), we are all in this dirty, messed-up bed together. The bottom dirty sheet is the Eurozone (okay, it's really all of Europe). The top dirty sheet is the United States. And the contaminated "comforter" that's been keeping us all somewhat cozy since the markets hit their Great Recession lows back in March 2009 is, collectively, the emerging markets . (As an aside, I hate calling them "emerging." They have arrived.) Let me explain. I call Europe the bottom sheet because it's like a fitted sheet. You know, the kind where the corners come together and hug the mattress so it doesn't fall off. That's Europe. Its debt problems are intractable. The only way the European Union can get its dirty sheet to the laundry is by pulling the corners of the Union apart. That can be done only one of two ways. Break Here: To continue reading, please click here...
Have you seen the six-month price chart for the Dow Jones Industrial Average, the Standard & Poor's 500 Index, the NASDAQ Composite, the U.K. FTSE 100, the German Xetra (DAX), the Hong Kong Hang Seng Index, the French CAC 40, the Milan FTSE MIB, the Australian S&P ASX 200, or the Shanghai Composite Index?

I'll make it easy for you.

If you haven't seen any of them lately, check out one of them - any one.

It doesn't matter which one, because - really frighteningly - they all look remarkably alike.

Talk about dangerous liaisons!

Fitch Ratings warned Wednesday that contagion from Europe's debt hangover could seriously impact U.S. banks. That's amazing. How did they ever figure that out? And so quickly!

Of course, that's not new "news." So why did U.S. equity markets, which were enjoying a reasonably positive day, turn tail and sell off hard into the close?

Because the truth is, regardless of incipient talk of some U.S. decoupling from global equity markets (yeah... good luck with that), we are all in this dirty, messed-up bed together.

The bottom dirty sheet is the Eurozone (okay, it's really all of Europe). The top dirty sheet is the United States. And the contaminated "comforter" that's been keeping us all somewhat cozy since the markets hit their Great Recession lows back in March 2009 is, collectively, the emerging markets. (As an aside, I hate calling them "emerging." They have arrived.)

Let me explain.

I call Europe the bottom sheet because it's like a fitted sheet. You know, the kind where the corners come together and hug the mattress so it doesn't fall off. That's Europe. Its debt problems are intractable. The only way the European Union can get its dirty sheet to the laundry is by pulling the corners of the Union apart.

That can be done only one of two ways.

If you've already signed up for Wall Street Insights & Indictments, Shah Gilani's new free newsletter, there is no need to sign up (you've already received this report as part of your existing subscription). But if you aren't a subscriber, take a moment to sign up below to receive this full article. You'll also receive Shah's latest report, "5 Ways to Trade the Coming EU Collapse - And Make a Killing."


Email Address:
Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here