I think it's amazing.
They caught the Brussels bomber (the one that didn't blow himself up) and there was an extra bomb, so he could have killed more people – yet the markets in Europe are UP this morning. Sure it's nice they caught the guy and they say it's the same guy who mastermined Paris but the fact that he's 24 years-old and that ISIS has 30,000 other core members SHOULD bother people – at least a little.
When the markets are back near their all-time highs, I tend to look for things that can go wrong and it's kind of strange to think that terror attacks on major cities is not one of those things. Our near-total detachment from reality reminds me of a scene in the movie "Brazil", where rich people are having lunch and the restaurant is bombed and they simply go on eating amidst the horror, only mildly inconvenienced. Is that the world we're aiming for? Seriously?
Neverheless, as you can see, the VIX, the "fear index" has continued it's March march lower, down almost 50% from it's February peak. The only thing the markets actually fear is that the Central Banks will stop the endless flow of FREE MONEY that is flying off the presses and 13 Central Bank actions in the past 30 days say that's not going to happen any time soon (see Monday's post for the chart).
Speaking of Brazil (EWZ), corrupt President Dilma Rousseff said she will never resign and that she considers the impeachment procedure to be a coup as that country spirals completely out of control with barely 4 months to go before the August 5th start of the Olympics or, as Rousseff likes to think of it – payday! You have to sympathize with her as all these years of bribes and kickbacks will all be for nothing if she can't be there in August to collect her take.