Europe is Burning/Capitulation day in Gold and Silver.
Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 16 minutes ago
Good evening Ladies and Gentlemen: Today gold closed down $45.00 to $1592.50 Silver held up much better by falling only 12 cents. The paper price of gold and silver reacted to the increase in margin requirements by the CME. For gold, this is the 3rd increase in the last few months. In silver this is the 6th increase. In essence, the increase in margins eliminates leverage which is the name
UBS' Euro Doom And Gloom Team Releases Sequel: "The Eurozone Sovereign Crisis Has Entered A More Dangerous Phase"
From the same fine Swiss folks who three weeks ago (and before it was uncovered that when it comes to playing, or at least scapegoating, dangerously, UBS is second to none) brought you, "Under the current structure and with the current membership, the Euro does not work. Either the current structure will have to change, or the current membership will have to change," comes the sequel: "We believe the Eurozone sovereign crisis has entered a more dangerous phase. Financial and banking stresses are plainly evident as concerns about sovereign default grow. Notwithstanding signs from Washington this past weekend that European and world leaders are willing to consider more decisive policies, concrete steps remain elusive. Yet rising uncertainty threatens an already weakened world economy." The Swiss Bank's conclusions? "First, Europe’s politicians and policy makers must do more to shore up the Eurozone and investor confidence more generally. Among others, that probably includes stronger capital buffers in the banking sector, an expanded EFSF/ESM to finance bank recapitalization and support Eurozone bond markets, and further fiscal austerity in ‘at-risk’ Eurozone countries. But these are big asks of Europe’s ‘political economy’. Hence, the second conclusion: The likelihood is that the crisis will intensify before policy can deliver what is required." Reality 1: Strange little "source" voices inside the heads of chief economists of financial comedy cable channels: 0.
With 4 Days To Go, US Government Averts Another Near Keynesian Death Experience
While few were expecting that the US government would pull a Belgium and collapse following an end of fiscal year lack of funding resolution, virtually everyone was secretly harboring just such a hope. Well, trust the government to once again kill all hopes that America has a chance to finally grow out of its depression. As the WaPo reports, with just 4 days to go until the end of the fiscal year end, and until some form of a continuing resolution has to be struck, we have once again averted Keynesian Armageddon (i.e., the inability to issue publicdebt to fund the digging of holes). "Senate leaders announced a bipartisan agreement Monday evening that would keep government agencies funded until Nov. 18, potentially ending a contentious dispute on how to pay for disaster funds. The Senate is expected to approve its version of the temporary spending bill Monday evening. The House is likely to approve a very brief extension of funding by a voice vote later this week and, when it returns to session next week, hold a vote on the stop-gap bill funding the government till Nov. 18." Expect the market response to be furious and hilarious as somehow news that America won't be lining up in front of the Southern District of New York (or, more properly, Beijing) for now, will be spun as massively bullish.Graham Summers’ Weekly Market Forecast (Crash Time Edition)
09/26/2011 - 19:01
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