Deficit summit brings about more talk, no answers

This is an old theme  here, but the issue and the confusion persists, as I have just come from attending the Peter G. Peterson Foundation’s fiscal summit today, complete with a protest/press conference  on the front steps of the summit venue, with the protesters arguing against the “austerity” measures they think the summit participants and attendees advocate.

By Marc Chandler:The first European Summit of the year ended with a shroud of uncertainty hanging over Greece. Officials are sounding an optimistic note that an agreement will be struck before the end of the week, but an agreement will l simply shift the focus from the terms to the participation rate and the recognition that even a haircut of some 70% on a net present value basis is insufficient to put Greece's debt n a sustainable path.

The Financial Times reports Brussels hit by strike as EU leaders meet. A general strike brought widespread disruption to Belgium on Monday, as European Union leaders arrived for a summit in Brussels with a focus on boosting employment across the region. Trains, shipping, air travel and public transport were all hit by the trade union action, called in response to reforms enacted hastily by the new government of Elio Di Rupo.

Ontario’s Progressive Conservatives plan to move a motion of non-confidence in Premier Kathleen Wynne’s minority Liberal government even before it presents the provincial budget, The Canadian Press has learned. The basis for the motion, officially called a want of confidence, is the Liberals’ continued attempts to mislead the public and cover up the true costs of their political decisions to cancel gas plants in Oakville and Mississauga, a senior Conservative source told the news agency.

When even JPM says to panic, it may be time to panic. And then we ask why is all of this happening right now, why is even JPMorgan advocating a risk-off posture, and then we recall that every single year in late March, early April Europe comes back front and center with a bang, just as we forecast in "It's Deja Vu, All Over Again: This Time Is... Completely The Same" and then everything becomes very clear. From JPM's Alex White:

Facing a $6 billion hole its coming budget, Alberta premier Alison Redford held a 7-hour long economic summit on Saturday. More than 350 attendees listened to more than a dozen panelists lay out the scope of the problem; from high per-capita spending to over-reliance on volatile resource revenues. Although Ms. Redford said the summit would inform long-term discussions on Alberta’s economy — rather than a budget that is set to be tabled in less than a month — several solutions were offered; almost all of which rhymed with “Sales Tax.” The Post’s Jen Gerson attended.

Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.Adam Hewison, charting strategist of INO.TV, brings you another edition of his invaluable service of daily technical updates on the ups and downs of various markets. This short analysis is a great tool for keeping one’s finger on the pulse and timing the markets.