European markets are not crashing and our futures are indicating a higher open. The sociopaths at S&P must be saddened by this news, as their intent is to fuck with people and jar markets. If they were really interested in grading credit properly, they would have done so in 2007. As far as I am concerned, it’s too late for redemption. Their credentials should be stripped and doors closed for good.
If we rally today, I will most likely do nothing, yet again. My positions are in limbo, basically flat, awaiting a catalyst to press forward. MU has that RMBS lawsuit, which should be decided on shortly. Either way, MU is absurdly cheap down here.
Unless the ball of yarn gets tossed down the steps, I will remain positioned for a tech rally in October, with a TLT hedge. I will not allocate cash into this market due to the risks to the banking system. Understand, the type of risk that is present now can sink the market 20% in a single day. On the other hand, policy makers are obsessed with creating inflation, which is viewed as bullish for stocks. These cross-currents make for a psychopathic market, one that cannot be trusted, long or short. Knowing that, I will continue to trade small and try to make the best of this fucked up situation.
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trade small and carry a big stick (NO HOMO)
Disclaimer **not intended as financial advice for The Fly**
Off the starboard bough, there has been a Devil Dog sighting!
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**TEST**
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Fak, I wanted to post a “Devil Dog Sighting” (some hunter crossbow bolted himself to his own ATV), but the link won’t publish…
It’s in Drudge, if y’all want to see it.
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Every attorney in Armonk has been dispatched looking for Steve the neighbor’s neighbor. This will not end well.
???
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Ahhh… the logo. Got it.
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Wrong stuff. It’s Timothy’s not Tully’s Italian roast.
How the Greek tragedy will End.
“Contagion has now reached the Rhine and is mightily roiling German politics, making it uncertain whether Merkel can even get the second Greek bailout through the Bundestag. That is by now, however, all but irrelevant because in Greece itself, the game is up. Its economy is collapsing, the interest bill on its soaring debt will absorb a quarter of state revenue next year, and the taxmen who should be collecting around €40 billion in unpaid Greek taxes are all but on strike. Reforms have been woefully timid but are still bitterly resented. The vaunted sale of state assets has never left the drawing board, a run is developing on Greek banks, and unless the E.U. and IMF cough up the next €8 billion within a fortnight, Athens will run out of cash to pay next month’s bloated public-sector salary bill. In a desperate throw of the dice, the government has announced a property tax to be paid through domestic electricity bills—which the mighty electricians’ union has said it will refuse to collect.
The only uncertainties now are the terms of a Greek default, what the wider damage will be, and how to limit it. The fact that politicians have painted default as an unthinkable catastrophe does not help. It will be messy—yet no less messy than the political confusion that has stymied decisions for the past 18 months.
Writing down Greek debt by, say, 60 percent would saddle the European Central Bank with a big bill; create holes in the balance sheets of some big French, German, and Belgian banks; and, to an unknown extent, expose British and American holders of credit default swaps. Not only Greek but Romanian and Bulgarian banks could collapse, while Cyprus’s exposure to Greek debt is 156 percent of its GDP—and Russia holds massive deposits in Cyprus. But as Timothy Geithner has observed, the eurozone is not exactly penniless, and should be able to recapitalize banks that need it. The harder task will be to calm the European bond market, starting by providing Ireland and Portugal, which are in the recovery ward, with sufficient liquidity to ride out the storm. The European Central Bank will also need to buy Spanish and Italian bonds—but on the condition that their pampered politicians take the sort of steps Italy balked at this summer, notably the total abolition of Italy’s pointless and costly layer of provincial government.”
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“The sociopaths at S&P must be saddened”
Yes. Indeed.
I am still waiting for the apology for providing AAA ratings for mortgage-back securities.
If I didn’t know any better, I would swear S&P is staffed with ex-SEC officials from the Bush Administration.
Einhorn was right. These people are a joke.
Gotta be true Karma. And they’re all wearing their lapel pins “Al Quaeda Member of Distinction.”