Angela Merkel, Burning Man

The markets are rallying as focus leaves Irene and picks up on last week's pop. Weekend papers in Germany put down early speculation of a Merkel/Sarkozy deal forming with more political integration and Pan-Euro bond issuance. Merkel's power base is fracturing over the "shared burden" mantra. She now appears to have 23 willing to vote against the 440B Euro EFSF fund expansion. Her government could fall. The vote is scheduled for Sept. 7 and the Bundesbank has voiced stern opposition to bond purchases.
Der Spiegal has obtained a "draft document" from the political party CSU that reads in part: "An unlimited transfer union and pooling of debts for any length of time would imply a shared financial government and decisively change the character of a European Confederation of States." State bankruptcy and EU expulsion are discussed. The EU is very close to failing.
So, why the positive opening this morning? The US data will highlight a 3 dissent FOMC meeting and the NFP report. Irene will linger on the work environment into the holiday. Perhaps, the ecstasy dropping and glo-stick wearing euphoria of Burning Man has spilled across the economic landscape from the Nevada desert. The annual post-apocalyptic, anti-consumption, "de-commodification" idea fest is in full swing. So far, no sign of Angela. Nothing ever comes out of it but Burning Man's "importance" has grown every year. Lose the glo-sticks and you've got the Euro Zone. The fun culminates with someone big getting fried in an elaborate fashion.

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