It's a Fiscal Problem

The market reflexively rallies on these comments from central bankers promising more liquidity and bond buying, but that doesn't solve the problem.  The Europeans aren't ramping up their government spending/tax cutting as much as the Americans.  That's the difference. 

Next week, on August 1 is the FOMC meeting, and on August 2, is the ECB meeting.  I am sure we will have a lot of anticipation going up to those 2 events.  If they don't bring out their big guns, the market will be extremely disappointed.