In plain English and within the scope of Econ 101, the infamous Nouriel Roubini weighs in on the recently announced $1 Trillion EU debt purchase backstop; discounting its potential for success and identifying roadblocks that may lead to failure.

Specifically, Roubini states that despite the “money on the table”, the following three headwinds oppose a return of normalcy in the European Union’s debt markets.

Last week was a ROUT. There’s no other way to put it. While we suspect this week will start off with some trading traction, it may not end looking much better. What is certain, is that geopolitical uncertainties in Europe look to be trumping economic data in a slow week for U.S. macro indicators. This week’s Weekly Spectrum is then more focused on the geopolitical risks surrounding the EU TARP style debt purchase program nearly $1 Trillion large, power transitions in the UK and Germany, and a few economic reports due out later in the week in the U.S.

Crude Oil has reluctantly played follow the leader with U.S. equities for much of the past 12 months. More recently, fundamentals took a back seat to short term speculation as risk takers drove the price of hot button commodities up with stocks. Crude has been in a holding range between $80 and $87/barrel for all of March and April, but in the past two trading sessions NYMEX WTI crude plunged directly from the top to the bottom of that range.

With the Euro diving, Greek Bonds selling off, CDS spreads widening, and now members of the EU fearing contagion risks are growing, the importance of budget cuts in Greece coming to pass has come to center stage of the European debacle.

What will happen if the citizens of Greece defy these cuts and drag out the process until market speculators have driven the continent and it’s mutual currency to it’s breaking point?

Greece, Greece, Greece… Is that Papa guy ever going to get his act together and accept a check from the EU? is it 45 billion or 100 billion Euros now? What’s the deal with these riots in Athens?

Chances are you have answers to these questions, and a few extra cents to contribute to the issue. Frankly, that’s what the comment box is for, and we won’t waste time on the issue beyond these next few words.

Most will probably tell you that ABACUS was a fancy deceptive ploy by Goldmand Sachs (GS) to cheat other banks out of their money and make bets against the U.S. housing market, which would ultimately lead to the recession.

Call us what you will, but we’re going to take a different stance on the issue, first explaining what ABACUS really is and then placing it in the context of financial markets.

Elliot Wave International chief market analyst Steve Hochberg applies Elliot Wave market timing theory to the current market dynamics. Indicators of sentiment including the S&P 500 put/call ratio, insider trading, and a crashing CBOE Volatility Index are cited as evidence for an eminent sell-off in riskier assets globally.

Click below to see Steve make his case on CNBC’s Squawk Box…

U.S. stocks looked unusually strong on Friday as two major factors concerning short term risk in global markets changed dramatically. The stagnant housing market and uncertainty over a viable path to solvency in Greece, which have been weighing heavily on global markets, seem to be less threatening if Friday’s data were judge. Technicals remain extremely overbought in commodities and equities as markets now face Bernanke and Q1 GDP this week.

Nadar Naeimi, a strategist for AMR Capital Investors Limited of Australia, chimes in as he adds his two cents to the discussion on when this rally in equities will end. AMR Capital, with the help of Naeimi, manages assets for some of Australia’s largest pension funds, with total assets under management close to $90 billion.

Click below to see this crucial report!

If you ducked out of the office for a three day weekend and missed the news regarding Goldman Sachs and Greece on Friday, you may be rolling up your sleeves to a few surprises that will cast a dark shadow on the April 19 week’s market action.

Mainly, Goldman Sachs (GS) has been charged with fraud by the Securities and Exchange Commission (SEC), linked to a Credit Default Swap (CDS) mechanism known as “Abacus”.