Dog Days Of Summer

Not this year.  Metals did not take the summer off. Gold is on a tear topping US $ 1,800.00 before falling back to the mid US $ 1,750.00's. European banks in the PIIGS states and France are teetering on the brink of the abyss. Where do we go now?  Seems the world is spinning in more and more  chaos. Reports out of Japan claim that Japan is burning their radioactive waste from Fukushima. This is
creating a  radioactive rain out that is not only coming down in Japan, but in Hawaii, British Columbia, Washington, Oregon and California. What the hell are they thinking?

Look to Europe to for market direction this week.  Will French bank SocGen survive the week as everyone is questioning their viability while leveraged at 50x to 1. This is much more leverage than Lehman Brothers had when they blew up! The ECB will quietly demand that they raise capital, SocGen has no choice and when the market hears they are trying to raise cash, which would mean they are admitting they are under- capitalized, this will drive their stock price down. It becomes a downward spiraling effect where no one wants to be the last man with SocGen's stock in their portfolio.   If this happens, SocGen will pull down the rest of Europes banks like a house of cards.