G-20

A quick review of the countries that make up the G-20 can tell you a lot about its troubles. Natural resource and mercantile focused countries are vastly outnumbered by indebted and growth struggling Western nations. A strange "nation" popped out on the list to me this morning. The EU. France, Germany, Italy and the EU are represented. For the first time since the Maastrict Treaty, F, G and I do not necessarily represent the latter.

There is plenty of shame for the US contingent also. Walking in with at least a road map from the Super Committee would have been a valuable tool for the POTUS. Instead, he is armed with nothing but promises and mea culpas. If he wanted the US to be more like Europe, his success is his biggest failure. Our advice is do not engage in any drinking games with the word "stability" while the con-fab is on. The quest for the Holy Grail of Stability is getting the full Monty Python treatment by the capital markets.

Abandon the concept as a policy objective and you will move closer to the reality. Simultaneously regulating players out of the game and expecting less volatility is asinine.

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