AN EXCERPT:
The European problems are quickly coming to a head and there will almost certainly be workout or defaults along the line of what happened to the South American defaults of the 1980’s. The culmination will probably be an exchange of the current debt for new debt instruments along the lines of the Brady Bonds. Sure, some investors will get stiffed and some banks will have to take some losses, but they’ll just change the rules. European banks will simply segregate and hide their losses just like we do here. Problem solved and we can go about our version of extend and pretend and get back to the matter at hand—the eternal stimulus and fighting deflation with inflation.
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Somehow your posts don’t show up on the frontpage, it shows RC’s posts instead, under your name.
Weird.
Bias to the upside to close at 1165ish range…but darn this is a super gruge match of China v USA today…Good Morning
Mid day…so far China is winning….we got Scott’s 1150 retest and if we can’t hold the 89MA on minute chart on SPX we could be retesting it again. Scott VERY good point about monday rally…NFP and elections behind us and Shanghai probably catching support on Sept 2009 lows it would make total sense.
Why the 89 MA?
Two reasons…..One it’s a Fibo number ….and second, in my reading, many pro traders LOVE that MA…Futures Mag even did a full article on it I believe…..
Thanks, I’ll check it out more…
China Sell Off trumps Possible good news on NFP in USA….lesson learned.