ECB Pause

With the Fed and Bank of England ZIRP'd, the ECB holds at near-ZIRP of 1%, catching the social vibe that maybe the worst is behind us and things are about to turn around.

At home, the DJIA has been hovering at the upper 8000s. Unemployment is on a constant march upward, and at 9.4% for May it could well surpass 10% in a month or two. But it's no longer "unemployed"... it's "funemployed!" Recent successes of the DJIA and rising oil prices have reassured the more optimistic among us of good investment opportunities soon.

The debt unwind, and the consequent contraction of money supply, has plenty of room still to go. Quantitative easing can stall the process but does not affect fundamentals.