Updated

Jefferies Describes The Endgame: Europe Is Finished

The most scathing report describing in exquisite detail the coming financial apocalypse in Europe comes not from some fringe blogger or soundbite striving politician, but from perpetual bulge bracket wannabe, Jefferies and specifically its chief market strategist David Zervos. "The bottom line is that it looks like a Lehman like event is about to be unleashed on Europe WITHOUT an effective TARP like structure fully in place. Now maybe, just maybe, they can do what the US did and build one on the fly - wiping out a few institutions and then using an expanded EFSF/Eurobond structure to prevent systemic collapse. But politically that is increasingly feeling like a long shot. Rather it looks like we will get 17 TARPs - one for each country. That is going to require a US style socialization of each banking system - with many WAMUs, Wachovias, AIGs and IndyMacs along the way. The road map for Europe is still 2008 in the US, with the end game a country by country socialization of their commercial banks. The fact is that the Germans are NOT going to pay for pan European structure to recap French and Italian banks - even though it is probably a more cost effective solution for both the German banks and taxpayers....Expect a massive policy response in Europe and a move towards financial market nationlaization that will make the US experience look like a walk in the park. " Must read for anyone who wants a glimpse of the endgame. Oh, good luck China. You'll need it.

Not Quite 3 For 3 As BNP Outlines Rapid Deleveraging While Moodys Maintains Review

It seems at the first whiff of downgrades from Moody's, BNP were forced into action announcing a series of asset disposals as Moody's announces no downgrade but maintains review for downgrade...

Credit Agricole, Expectedly, Joins SocGen On The Moody's Downgrade Path

...as expected from the previous post. Now, BNP downgrade a matter of seconds.

SO IT BEGINS: SOCGEN DEBT, DEPOSIT RATINGS CUT BY ONE NOTCH TO Aa3 BY MOODY'S, OUTLOOK NEGATIVE

Ladies and gents, it starts. Credit Agricole and BNP downgrades imminent.

Market Snapshot - Reaction To Wen's Ultimatum

An hour after Chinese Premier Wen Jiabao dropped all pretense of working together for the greater good, markets around the world are reacting more notably than many would have expected. With most talking heads still clinging to the line about 'helping the Europeans' and missing the quid-pro-quo of it all that we so clearly intimated from his speech, expectations of a risk-on 'we-are-all-saved' reaction have been dashed on a beach of the-trade-wars-have-begun. ES is -13pts from the day session close (and almost 20pts from intraday highs), having taken out intraday swing support levels around 1154.

 

 

Blast From Paul Krugman's Past: "Social Security Is A Ponzi Scheme And Will Soon Be Over"

It is one thing (what thing that is we are not sure, but we have heard others say it, so like all good lemmings we will say it too) for Rick Perry to call Social Security a ponzi scheme. After all he is some crazy, foaming in the mouth conservative, as uber-Keynesian liberal Paul Krugman may call him. And that's fine. What confuses us, however, is why Social Security would be called a ponzi by the same liberal noted previously: none other than Paul Krugman himself.

 

 

The Coming Currency Crisis

Poor Ben Bernanke. The greatest financial train wreck in history is going to happen on his watch, and it will be mostly his predecessor’s doing. But not the work of Alan Greenspan alone. The Washington elite and their compulsively clever counterparts around the world have set the US (and global) economy up for a currency crisis of gargantuan proportions.
When?
Soon.





Get ready for the next crash

 

 

Wen Jiabao Says China Willing To Extend Help To Europe... For A Price

When in doubt, recycle... In this case the rumor that China would bail out Europe is about to get second billing. From Bloomberg, quoting Wen Jiabao at the Dalian World Economic Forum:

• WEN SAYS CHINA WILL CONTINUE TO INCREASE INVESTMENT IN EUROPE
• WEN SAYS CHINA IS WILLING TO EXTEND HELP TO EUROPE

Granted, nothing new here, and it simply means that China will be happy to buy European assets at firesale prices and invest in 20%+ IRR projects, but the algos, which have not yet seen this news, are expected to kneejerk higher, regardless of how short the latest intervention halflife will be (recall that China already has sizable investment in Greece, Portugal, the EFSF and the EUR). Call it what it is - doubling down, all over again. That said, the bailout for Europe will not come free, and once that realization hits the market, this may have a completely opposite reaction that the one intended...

Resort to SDRs for next bailouts will spur rush to gold, Rickards says

"High Frequency Minutes": HFT Explained In 6 Short Video Clips

After over two years of over 200 posts discussing the dangers of High Frequency Trading on Zero Hedge, the mainstream media (and its comedy-finance fusion Comcast offshoot) has finally made its goal in life to destroy HFT. The only reason for that, of course, is that HFT, by definition, tends to accentuate moves. And while it did so to the upside, nobody but Zero Hedge and a very few other blogs, most notably Themis Trading, cared (and a whole lot of other "experts" ridiculed our views of HFT as liquidity extracting, because yes they are, rebate chasing, sub penny frontrunning parasites). Now that the tables have turned, everyone, up to and including that caricature Jim Cramer can't get enough of bashing it. Which is why for anyone still relatively new, and thus unjaded, to the topic, we present this informative and succinct six-part videoclip series just released by Securities Technology Monitor titled "High Frequency Minutes" discussing all the latest paradigms in the world of modern cutthroat, nanosecond trading.





We're All Greece - And On Fire - Karl Denninger




Europe Facts, Not Fiction: Usage Of ECB Deposit Facility Goes Parabolic, Sov CDS Wider Across The Board




The Last Haven Standing  




Here We Go Again:  US to Breach "Transitory" Debt Ceiling on Monday




Gerald Celente Predicts "Winter of Discontent"




Here's Why Greece Leaving the EU Could Cause Another Depression




Economy:  World Entering "Dangerous New Phase"




Waking Up to a Post-Growth Economy




Mortgage Rates Fall to 60-Year Low, But Few Qualify
 

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