It is the end of May and the world seems headed off an economic cliff. A few months ago I said that I expected one more "safety trade" when all the liquid money in the world would be invested in either US Government bonds or London real estate. I don't know anything about the London real estate market but the US government market is on fire.

Elsewhere, undeterred by either facts or experience;

The Europeans still act like there is a solution the Greek situation,.

US bankers still believe they understand the complex financial instruments they have created and continue to trade.

Investors still think tech stocks must go up and if they don't it merits a congressional investigation

Finally, US Investment Banks are awaiting the latest pronouncement from Moody's about their credit rating. Moody's who missed the recent JP Morgan debacle expects people will still believe they have a clue. I cannot say for certain whether the US Banks are either good or bad, all I know is they are in better shape than a year ago. Consequently if Moody's lowers the ratings they will be admitting they had no idea a year ago about the financial condition of the banks.