Carpe diem: December 2011

A Summary of 2011 in Rhyme

Or –

KO’d by a Grecian

Or –

Debt in Venice

As Two Thousand and Eleven began

Markets were flying like a well-kicked can.

The only challenge in solving the world’s ills

Was finding the paper for new dollar bills.

The Fed was throwing cash from the chopper

But banks just let it pile up in the hopper;

Their view on lending it went roughly thus:

“All your base money will belong to us!”

But markets began to lose their mojo

As Washington nearly ran out of dough.

The ceiling was raised, America could pay –

Though it then became the US double A.

But relief was short, as attention swung

To a country on S&P’s bottom rung.

Greece was on the brink of liquidation,

And threatened to spoil the summer vacation.

The eurocrats gathered, markets held their breath:

How far could they pump up the EFSF?

The Germans said, “banks must take a whack, ja?”

The world turned on a vote in Slovakia.

Markets rallied before each new summit,

Only then to subsequently plummet.

The ECB with its silver bullet

Wouldn’t touch the trigger, let alone pull it.

It seemed that the banks might hit the wall

If the bonds they held continued to fall.

Hence: a European Crisis Backdoor –

Lend them all money to buy a lot more.

The year left investors tired and jaded –

It seemed the whole world was being downgraded.

Surely twenty-twelve would resolve all this doubt!

The question being – with rally, or rout?

Carpe diem