iPhone Day

German courts ruled in favor of ratifying the European Stability Mechanism (ESM) which has funds of approximately $905 billion Euros to combat the financial crisis.  This moves Mario Draghi of the ECB one step closer to implementing the short term bond buying of fledging countries debt.  While it may provide temporary relief, many investors see it as just that and not a solution to the longer term consequences.  The strategy sounds all too similar to the U.S. quantitative easing, with the exception that Europe is bound together by currency alone and not law.  They are faced with going through what our early colonies had to endure in order to become “united”, but our colonies did not have the obvious baggage of inheriting billions of  other countries debt.  Back here at home, there’s more excitement about the new iphone being released today.  Stocks are up slightly and mortgage bonds are about even as investors are anticipating tomorrow’s Fed announcement to contain QE3.  There could be a very big move either way, so we will suggest locking on short term transactions.