Sprott Launches Physical Silver Mutual Fund, Will Likely Soak Up Much Marginal Silver Inventory 

Submitted by Tyler Durden on 05/09/2011 10:42 -0400

And another major source of physical demand in the already very undersupplied silver market appears. Just released from Sprott Asset Management, who recently added to the perfect storm in silver by cashing out on the record PSLV premium and converting proceeds to miner stocks: "The Sprott Silver Bullion Fund is an innovative offering, being the first mutual fund in Canada to invest primarily in unencumbered, fully allocated silver bullion. The Fund's objective is to seek to provide a secure and liquid investment for investors seeking exposure to silver bullion without the inconvenience associated with direct investment." We can't wait to discover how many tons of silver this mutual fund will soak up imminently, and where the always exciting adventure of "COMEX registered silver" takes us next...

Ted Butler: First fear, then anger

 

Silver will hit new highs in just weeks, Turk tells King World News

 

 

Here We Go Again: German Government Advisor Says Eurozone May Not Remain Intact Over Next 12 Months 

Submitted by Tyler Durden on 05/09/2011 08:54 -0400

Your daily diversion comes from German government advisor Bofinger:

• Eurozone needs a very comprehensive solution, or may not remain intact over next 12 months
• Need to consider EU stimulus measures for Greece in addition to belt-tightening
• Have to change overall approach for Eurozone periphery countries

Euro now sliding since apparently the EURUSD traders did not get the Friday memo that the G-7 have decided fair value for the pair is 1.35 tops. Oh yes, in the meantime we can't wait for Germany to get back to the DEM which will buy about $10 USD and make German exports a thing of the ancient past.

Greece Downgraded From BB- To B As S&P Believes More Than 50% Principal Debt Reduction Would Be Required 

Submitted by Tyler Durden on 05/09/2011 08:22 -0400

• Under our sovereign ratings criteria, a commercial debt rescheduling typically constitutes a default.
• In our view, there is increased risk that Greece will take steps to restructure the terms of its commercial debt, including its previously-issued government bonds.
• Accordingly, we are lowering both the long- and short-term ratings on Greece to 'B' and 'C', respectively.
• We are leaving both ratings on CreditWatch Negative.

Greek Response Is Swift And Brutal 

Submitted by Tyler Durden on 05/09/2011 08:48 -0400

If Too Big To Fail was made into HBO namedropping comedy hour, this certainly deserves its own 90 minute, Bollywood produced, TheOnion directed, 3D motion picture:

• GREEK FINANCE MINISTRY SAYS S&P CREDIBILITY IN QUESTION
• GREECE SAYS S&P MOVE ISN'T JUSTIFIED

Pretty much says it all. Elsewhere, Greek prosecutors are "investigating" Der Spiegel. No Citigroup bond runs to be scapegoated this time...

True Finns Timo Soini Issues Statement: "Why I Won't Support More Bailouts" 

Submitted by Tyler Durden on 05/09/2011 07:59 -0400

When I had the honor of leading the True Finn Party to electoral victory in April, we made a solemn promise to oppose the so-called bailouts of euro-zone member states. These bailouts are patently bad for Europe, bad for Finland and bad for the countries that have been forced to accept them. Europe is suffering from the economic gangrene of insolvency—both public and private. And unless we amputate that which cannot be saved, we risk poisoning the whole body. The official wisdom is that Greece, Ireland and Portugal have been hit by a liquidity crisis, so they needed a momentary infusion of capital, after which everything would return to normal. But this official version is a lie, one that takes the ordinary people of Europe for idiots. They deserve better from politics and their leaders. To understand the real nature and purpose of the bailouts, we first have to understand who really benefits from them. Let's follow the money. 

 

 

 

 

 

Guest Post: The Best Of Times, The Worst…. 

It was the best of times, it was the worst of times....This time is different.....There is nothing new under the sun.....All of us---by “us” I mean human beings---tend to think too much with our egos and not enough with our rational minds. When we are young, we think we have unique and novel insight into life and the human condition, as if we are the first person to have ever thought certain thoughts. We all read---at least back when I went to school---the classic literature, the Greek playwrights and Shakespeare, but it is only when we reread these works as adults that we realize that everything has been thought of before. The best we can do is put a slight sidespin on it. We are humbled. We bring this same tendency---a belief in our uniqueness---into the issues that face our time on Earth. “There has never been a better time to be alive.”...." This is all going to blow up faster than most people think, and it is TEOTWAWKI.”....Somewhere in the middle probably lies the truth. Many of us---myself included time to time---fear that life as we know it is about to come to an abrupt and painful end. Others---most visibly those who are wheeled out as guests on CNBC---think things are on a rise as far as the eye can see. And for some---I am thinking John Paulson and David Tepper---times have never been better. Who is right? Maybe nobody. 

 

 

 

 

Goldman's Take On Greek Non-Expulsion News, And Record German Imports And Exports 

Submitted by Tyler Durden on 05/09/2011 07:03 -0400

Last week we predicted that rumors of a Greek (self) expulsion are nothing but hot air, and an attempt to escalate so-far failing rhetoric at improving the economics of austerity. This was proven right, even as we also predicted, the EURUSD surprisingly remains sticky in the 1.438 area, meaning 120 pips in EURUSD was wiped out on purpose. Here is Goldman's take on this weekend's developments: "Policy makers discuss further help package for Greece. The head of the Euro group Juncker said after a meeting of finance ministers last Friday that "we believe that Greece will need a further program". According to FT Deutschland such a new program could include an extension of repayments of the loan provided under the first program as well as a reduction of the interest rate for these loans. Juncker also dismissed the idea that an exit of Greece from the Euro-zone was being discussed: "This is a stupid idea, it is not a direction we will ever embark on". Newspaper Die Welt reports that the German government demands as a pre-condition for any further program that Greece will also negotiate a - voluntary - maturity extension with its private creditors."