Weekly Info 11/07/2011

A lot of really smart people are trying to figure out the European breaking point. Can't be done. Like watching an inevitable car accident with a closing speed of an inch per day. Markets via bank run may step on the accelerator at any time. Or these boobs may stay on the Merkel Plan and let austerity run its course, which means recession throughout Europe, collapsing credit and then bank collapse. Unlike the US, Europe has understood for more than a century that banks are public utilities, but they forget that there are limits to capacity at the sewer plant. Once you have a sewer plant in trouble, be veeerrry careful with the valves. Mercifully, since the world buys so little from us, we'll be less-impacted by global recession than anyone. No inflation, low or lower interest rates, Fed free to QE3, easy to sell Treasurys. Born lucky.