Today seemed to be the day that investors wanted to make sure they were heard loud and clear. They were shouting at the top of their voices to the leaders of the EU, who continue to turn a deaf ear.
Today David Cameron went on the attack, defending his position and his veto of the new EU treaty last week. Angel Merkel spent the day trying to pump up the new vision of the EU as well as bringing the UK back into the picture. Merkel spent the day saying that the UK was very much part of the EU, while David Cameron insisted that the UK would not give up any of its sovereignty.
President Sarkozy of France, on the other hand, spent a good part of his day dealing with France’s rating downgrade and the problem facing French banks.
President of the European Council Herman Van Rompuy spent much of his day trying to put spin on the fact that now the remaining 26 members of the EU have agreed to support the new pact, but the fact remains that many have to get their parliament’s approval and that is not going to be as easy as they think.
President of the European Central Bank Mario Draghi and Head of the International Monetary Fund Christine Lagarde have spent their day, trying to figure out how they can aid the ailing banks and governments, but both have said they stand ready and are supportive of the EU efforts, but they both need to see a clear cut plan. Both Banks have made it clear that they might have trouble raising the necessary funds or taking the actions that the EU is hoping for.
Meanwhile in debt stricken countries bond sales have continued albeit at high interest rates, which have dropped from their highest level a week ago.
It seems everyone in the EU is very busy but no one seems to be dealing with the short term crisis… which is quickly moving to an emergency.
Investors are hoping that the markets will wake up these leaders to see what is in front of their faces. Global Markets were dropped, along with the Euro and the Sterling, as Gold followed suit.aling with the short term crisis… which is quickly moving to an emergency.