Friday, August 26, 2011

Bernanke and Merkel to Trichet: Ball is in your court

As Trichet's speech is coming up tomorrow, he got no helping hand from Merkel and Bernanke today.
Bernanke said: clean up your mess. And Merkel said: we are being blackmailed by markets.
LOL, Frau Merkel, markets do not blackmail, they predict. Markets see a total calamity coming up in your neck of the woods. DAX is down due to your inability to govern the union of deeply indebted nations. If you want you can continue to ignore.
Somehow I think Trichet will buckle under the pressure tomorrow. He does not want to leave the legacy of ailing Eurozone economy due to high rates. We will get a dovish speech tomorrow. Trichet will cut the rates before he ends his term.

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