I will go into more detail tomorrow, regarding the ineptitude of the IMF and ECB. In summary, the Europeans are displaying unparalleled ignorance with regards to systemic risk. Truly, they are ostriches with their heads in the sand, oblivious to the bond markets and how willing and able risk adverse managers are going to punish them for inaction.
Not doing something this weekend was a huge mistake. This is Lehman part 2, but worse. Whole countries will fail and all of the work central banks have done over the past three years will be for nothing.
There is no fix, only fail or kick the can down the road. I am caught long because I didn’t think they were so stupid, as to ignore the harsh lessons of recent history.
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Fuvk fuvk fuck fuck fuck.
On the flip side though. This means the bowtied one wins again.
He loses horribly. Commodities get raped. Hugh Hendry wins. Game over.
Rogers (also) wins, especially when it appears he is losing, badly.
He is only to happy to buy even more at special bargain prices, facilitated by euro-trash finance ministers.
He posted last week he was long USD$
I don’t think you can say it’s failed just yet. They never exactly said there’s no deal, rather they want a little more time.
yea kinda surprised they decided to jerk off instead as well… we either whip saw off this i lose another fuck load of money…
i’m not selling anything.
this is fly’s THEY KNOW NOTHING!! moment
THEY’RE NUTS!!! (3 exclamation points)
great post as always!
From what I read, the second installment on the first bailout won’t be released until July as the EU wants affirmation of Greece’s selling of state assets and backing of its austerity budget. IDK, all this uncertainty seems to be creating the Perfect Storm.
I can speak for the greeks as i have lots of family there – they will not let the bankers sell their islands or privatize other assets nor will the agree to any more austerity measures. like alan greenspan said this wknd, the greeks will default . more troublesome though is the spaniards…
The greek PM is only gonna continue with the proposed austerity measures if he receives a vote of confidence next Tuesday. It would have been surprising if they had pledged the money already regardless of that outcome.
If he gets his vote of confidence, the greek will get their money, and the can will be kicked 3 months further down the road.
http://www.benzinga.com/press-releases/11/06/p1181581/hundreds-of-atomic-suicide-bombs-could-be-triggered-by-solar-flares-sa
“hundreds of nuclear power plants on Earth, which are now at increased risk from severe solar flare activity in 2012, are effectively huge, atomic “suicide bombs” against which humanity has absolutely no protection.”
“”The unavoidable fact is that if we wish to survive we must abandon nuclear power, along with the tradition of putting the pursuit dollars above the concern for all life on the planet. Meier proposed that we rapidly develop deep geothermal energy as a certain way to meet 100% of our energy needs.”
Don’t go long reinsurance stocks into 2012 End Times.
why, if the world ends we’re dead anyways. Might as well load up so as people start freaking out and buying insurance as if it’s the end of the world, if it is in fact the end, no obligation (being dead and all). If it is not, you win.
http://beta.news.yahoo.com/ap-impact-us-nuke-regulators-weaken-safety-rules-071655132.html
LACEY TOWNSHIP, N.J. (AP) — Federal regulators have been working closely with the nuclear power industry to keep the nation’s aging reactors operating within safety standards by repeatedly weakening those standards, or simply failing to enforce them, an investigation by The Associated Press has found.
Time after time, officials at the U.S. Nuclear Regulatory Commission have decided that original regulations were too strict, arguing that safety margins could be eased without peril, according to records and interviews.
The result? Rising fears that these accommodations by the NRC are significantly undermining safety — and inching the reactors closer to an accident that could harm the public and jeopardize the future of nuclear power in the United States.
with US banks on the hook you think IMF will let this happen?
convenient that the head of IMF (interim) is an American and DSK is out no?
can must be kicked otherwiise Alex Jones wins !!!
Alex Jones wins. It’s just a timing question.
EUR/USD pair arent saying much is happening right now either
>> only fail or kick the can down the road. <<
by chance did you read my pg article from friday?
Indeud. Clowns driving in little euro clown cars.
>>There is no fix, only fail or kick the can down the road. I am caught long because I didn’t think they were so stupid, as to ignore the harsh lessons of recent history.<<
But you yourself just named the only two outcomes: fail now or fail later, so betting heavily against "fail" doesn't seem like a high-probability trade.
As an aside, why are they necessarily "stupid" if they MAY be (we don't know yet) willing to face the inevitable now so as to sooner begin the rebuilding process?
They are stupid because they do not intend to face anything. They think the market will wait for them to get their shit together.
in 2008, it was only housing, then autos, then retail, ect, now its only greese, and maybe itally, ireland, spain,,story sounds simular?
The bears always had a good case. Just the timing
Greece/eu. China slowing. Australia RE. US debt. US housing. US unemployment.
the cycle of massive deleveraging after massive leveraging has to take place.
When to take VXX full though… that is the question
Easy Greek solution: Turn the Parthenon into a strip club, let Disney develop Mount Olympus, and collect royalties on the name Greek yogurt.
Unless I am mistaken, Chobani reduced the package size of the product, along with about an 8 percent increase in price. Most likely as a distraction, they introduced larger size packages.
At the end of the day, unless it is plain, yogurt is just another sugar loaded scam from the food industry.
Fly, never underestimate the other guys STUPIDITY.
Interesting acquisition.
“PNC to Buy RBC’s U.S. Bank, Card Assets for $3.62 Billion”
Only PNC would choose to enter the Southeastern banking market under the auspices of a Canuckistanian bank branch network…
Oy.
________
greeks are refusing to see reality, 1 there fucked, social coruption, 2 even if they sold all assetts in country ,not enough. 3 if they go to the dragma there fucked as inflation will eat them alive,,did i miss anything? senior fly do u see anyway out for them? what does this do to us,france,germany?
yes,
their debt being denominated in EUR will kill them even more if they leave – therefore they wont, because the only advantage of leaving is devaluation of the currency.
in my opinion lots off bullshit posturing. haricuts cometh for bond holders with ECb filling the gap for the banks so the are made whole.
the u.s. holds 43b in imf loans to greese, is that right? so we get the hair cut too. im considering dumping all positions and going to gold. period..with the world economy in the shitter who will r companies sell to? gs revised r growth to 2% any thoughts?
Silver’s better.
PIIGS bonds are actually up, which means the Eurotrash bond markets are more or less expecting a deal to done.
Be long bottled water, batteries, generators, EVAC vehicles, water taxis, Swiss Franc and Norwegian NOK.
The best solution for the greeks is default, imho.
good thought, but what r the affects?
Gold backed drachma, a couple years of painful readjustment, then better off than the rest of the world except perhaps the Vikings.
Wod, it’s not that fucking easy. If they go, the rest of the PIIGS will try to default too. If they default seeya later western banking system.
China needs to lend the poker table $300 billion. That’s the solution.
After than The ECB needs to inflate.
Out of the two… liquidation or inflation, I’ll take inflation any time.
I’ll trust your judgment j, as you are more knowledgeable about such things. Have you read Mauldin’s thoughts on all this?
Bye bye Western banking system. Indeud. Will it be this year? Or will it be pushed out for another 15?
It’s already zombie. $600 trillion derivatives market ($600 000 000 000 000.00). It’s just a timing thing. Good idea to hold precious metals, hard assets, and production capacity.
oops… after that..
on the positive side japans nat gas imports r up 23%,
hmm…