"If you enter into the woods with a weapon and satisfy an angry bear, and you make a fantastic noise firing off your ammo however miss the bear, the sound just scaring it off for a while prior to it comes back at you again, and you keep shooting the weapon and making a fantastic sound however continue to miss, the bear catches on, and so do you. You understand you're practically out of rounds, that firing more will most likely be ineffective given that you actually aren't a shooter and the rounds don't go where you aim them. But given that simply making a noise had actually worked in a minimum of frightening the bear away for a while, maybe you can conserve yourself by just waving the gun and making a lot of sound. You know it's an act of desperation not likely to succeed - but it might. So it deserves a try, and what else can you do anyhow.

This week reserve banks and euro-zone authorities revealed us that is the predicament they're in.

In the U.S. the Federal Reserve, repeatedly threatened by a stumbling financial healing, has fired off rounds of quantitative relieving each time, accompanied by substantial hullabaloo. The result was limited, the hazard soon returning. And it's ended up being arguable whether firing off the quantitative easing was itself handy, or if the temporary reprieve each time was simply due to the hope raised by the accompanying rhetoric.

The risk of the economy slowing dramatically has actually returned again this summertime, and this time the Fed appears just able to make a sound about having more ammunition it could utilize, however not even going to expose what it is, not to mention fire it off at the problems.

In Europe, euro-zone officials have been firing off repeated rounds of ammo to no get for more than 2 years. Each time the financial obligation and banking crisis has soon come back at them a lot more aggressively, and they have waved extra weapons they may utilize and made a great deal of noise that sometimes raised hope.

A number of weeks ago they assured a bazooka of a weapon, hatched out at an emergency situation top meeting of the European Union, which was reported with a lot of sound. That boosted markets and terrified short-sellers away, but for just a really short period, up until it was realized it was a weapon developed by a divided committee and lacked a timing system and trigger.

When the crisis came back at them a couple of weeks ago still more strongly, with Greece and Spain both threatening to blow up the euro-zone, European Central Bank President Draghi leapt in saying the ECB would finally do as markets had been requiring and bring unprecedented firepower into action, ""and believe me it will suffice.""

It was adequate noise to scare the bear away for a number of days, however deceived many times, it just moved into the bushes where it could view and see if the ECB really had such weapons and would have the ability to use them.

And it didn't.

Draghi was anticipated to expose the supreme weapons on Thursday early morning. Expectations were for a minimum of enormous purchasing of the bonds of troubled Greece, Spain, and Italy, and much easier terms for their rescue.

Rather, he provided an interview in which he basically stated, 'Uh gee, the weapons are harder to bring than I realized, and I don't seem to have others ready to help me today. But we'll try to come up with a strategy to assist possibly at our next meeting'.

As the Financial Times put it under a heading 'Draghi Eliminates Hopes of Instant ECB Action', ""Mario Draghi required that troubled eurozone nations rely on exist rescue funds before any intervention by the ECB in bond markets ... Mr. Draghi said the ECB ""might think about"" once again buying short-term federal government debt of struggling countries however would expect them to follow the ""strict and effective conditionality"" enforced by the EFSF.""

So in both the U.S. and Europe, it's back to reliance on rhetoric and assures from central banks to possibly utilize efficient weapons sometime in the future.

There were three 'great expectations' events scheduled this week. The first 2, the Fed's FOMC conference on Wednesday, and the ECB meeting on Thursday were huge dissatisfactions.

Luckily, the 3rd, the Labor Department's regular monthly work report for July, came through impressively. Although the joblessness rate suddenly ticked up from 8.2% to 8.3%, there were 163,000 new tasks produced, far better than the agreement projection of 100,000. That snapped three straight months of task gains being well under 100,000.

However, every month I advise you of the history of the monthly tasks report. It generally is available in with a surprise in one instructions or the other, which in turn creates a one to three-day triple-digit move by the Dow in one direction or the other. (The last 3 reports were surprises on the disadvantage).

The opposite of the pattern is that the preliminary move is then normally reversed over subsequent days as the marketplace returns to whatever was its focus prior to the report.

A month ago the initial disadvantage reaction to the unfavorable surprise in the jobs report was reversed to hope that reserve banks were about to pertain to the rescue.

This time a reversal of the upside reaction to the positive jobs report will most likely be a go back to focusing on the euro-zone crisis, slowing global economies, and the now evident unwillingness of reserve banks to action in."