Gold New Record High In Euros (€1,375/oz) On Greek Default And Eurozone Contagion Risk
There has been a sharp increase in risk aversion with the euro and stocks internationally falling sharply due to concerns about the coming Greek default and the real risk of contagion in the Eurozone. The euro got off to a rocky start in Asia, falling to fresh six-month lows against the dollar and a 10 year low on the yen as downside momentum picked up after several key technical levels gave way recently. Gold could see weakness today due to dollar strength and the possibility of margin calls for leveraged players on the COMEX. However, bargain hunting bullion buyers are present at these price levels and gold is likely to be supported above $1,800/oz. While dollar strength would normally result in gold weakness it is very possible that both the dollar and gold could rise together in the short term. This would result in gold making sharper gains in pounds, Swiss francs, euros and other fiat currencies. France’s largest banks by market value, BNP Paribas SA, Societe Generale SA and Credit Agricole SA, may have their credit ratings cut by Moody’s Investors Service as soon as this week because of their Greek holdings. Officials in Merkel’s government are debating how to shore up German banks in the event that Greece defaults. Merkel is due to hold talks on the debt crisis with European Commission President Jose Manuel Barroso today. The risk of contagion in the Eurozone sovereign, banking and entire financial system is very real and will result in continuing safe haven demand.As Obama Discusses His Job Creation Plan, Bank Of America Releases Details Of 30,000 Job Cuts
The irony could.not.possibly.be.any.damn.funnier; Just as Sgt. Obama had the not so lonely unemployed club band huddled around him to tell America to "PASS THIS BILL", literally that very minute Bank of America released a statement it is sacking 30,000. Because Banana republic is so 2010, we are now officially an Onion republic.Total Credit As A Percentage Of The Economy: Historic Perspective
When the US went into World War II, total credit as a percentage of the
economy was 140%. We are now, without the unfunded liabilities, at 279% and
with the unfunded liabilities, probably around 800%. - *in Business Insider*
*Marc Faber is an international investor known for his uncanny predictions
of the stock market and futures markets around the world.*
What`s Next For Currencies?
Market At New Low As Euro Sells Off
Airtime: Fri. Sept. 9 2011
A look at what's happening with the euro/dollar relationship and what's next
for currencies, with Jim Rogers, Rogers Holdings chairman/CEO.
*Jim Rogers is an author, financial commentator and successful international
investor. He has been frequently featured in Time, The New York Times,
Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times and
is a regular guest on Bloomberg and CNBC.*
What's Next for the U.S.?
What's Next for the U.S.? Airtime: Fri. Sept. 9 2011 The dollar has a massive move against the euro today as yields on Greek government bonds continue to hit new highs. Insight on where the dollar is headed, with Jim Rogers, Rogers Holdings chairman/CEO. *Jim Rogers is an author, financial commentator and successful international investor. He has been frequently featured in Time, The New York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times and is a regular guest on Bloomberg and CNBC.*
Holy Shitshow: Recordathon In French Bank, European CDS Following Atriocious Italian Bond Auction, Dexia Bail Out, Libor Explosion
As we speculated on Friday, Europe has opened, and it is ugly. In fact, Europe has never been closer to a bank and market holiday than it is right now. Why? Let's go down the list...As Italian Bank Trading Halts Resume, The Borsa Italiana Breaks
Just after the FTSE Mib announced it is in process of breaking once again, we get notification that the Italian banks are resuming their rolling halts as predicted earlier this morning, with Intesa the first to go offline after plunging 7.9%. What next: any selling will be punshiable by death? Or will the Society for the Prevention of Cruelty to the Status QuoTM not go that far?
Goldman Stock Price Drops Back To Double Digits For First Time Since March 2009
It is too early to proclaim that ding dong, the vampire squid is dead, but it just dropped below triple digit range for the first time since March 2009. To anyone who enjoys to wager, this may be a good time to put some money that a Management/Buffet Buy Out (MBBO) of Goldman Sachs may be in the works.Guest Post: Credit Events And The Lire
For a Restructuring to Credit Event it has to meet some conditions. We have already been made to understand that anything that is “voluntary” is not a Credit Event. So if investors agreed to be paid back in another currency, it wouldn’t be a Credit Event in any case. But let’s just assume that with the bigger countries, some investors will resist any “voluntary” program. Then for a Restructuring Credit Event to occur, either the interest rate has to be lowered, some debt has to be forgiven, the maturity of the debt has to be extended, or the debt has to be changed to something other than a Permitted Currency. It is the Permitted Currency clause that would allow a country like Italy to keep all the terms of bonds the same, but pay back in Lire, and not trigger a CDS Credit Event. Permitted Currency includes the legal tender of any G-7 country. Germany and France could also play this game, but they have spent so much time defending the Euro they seem the least likely to do it. Italy on the other hand would welcome a weak lire. They could stop worrying about austerity and focus on getting a Ferrari in every garage in the Hamptons. Seriously, the Italian economy could perform extremely well if they revert back to making Lire legal tender (note, it does not say it has to be the only legal tender of a country, just that it has to be legal tender, so Italy could continue to use Euro while it re-introduces the Lire).As Stocks Surge On Rumor Of Additional QE Measures, Someone Forgot To Tell Europe It Is Fixed: CDS Rerack
Even as stocks surge on the back of the latest rumor that yet another perpetually wrong Medley report has been released and states that the Fed may cut the IOER to zero in addition to Operation Twist (we have not seen the report nor have any interest in putting any faith in a "think tank" work product), someone has apparently forgotten to tell Europe it is all filed. Here is the CDS rerack, which unfortunately shows that this latest stock ramp is to be faded, especially since QE3-666 are already priced in, and will all eventually fail.
And so the ECB's balance sheet, once upon a time clean of any monetization interventions, continues to deteriorate, and has now grown to a record €143 billion, after the bank disclosed €13.96 billion in PIIGS debt purchases in the prior week. This is an additional €70 billion since the SMP was expanded to purchase Italian and Spanish debt in early August (predicated by Italy complying with an Austerity prgoram that it has since made a complete mockery of). So for those complaining about the ECB pursuing Quantitative Easing, we wonder what one would call nearly $100 billion in bond repurchases in the open market in the past month: this is about as much as the Fed would purchase in its most active monetization month during either QE1 or QE2!
Art Cashin: "The New Battle Of Thermopylae Is On The Way"
Nothing actually new here, but listening to Art Cashin retall the latest end of the world episode in that wise, grizzled voice of his brings a soothing element to what is set to be another dramamine-friendly week."Over the weekend, the battle has shifted. German authorities talk openly of the likelihood of a Greek default. They are said to be developing a plan to backstop German banks in the event of a Greek default. That puts pressure on other banks, especially French banks, since there is no Gallic backstop plan. Collateral damage could be to bring no bids to the next Greek auction, or make them pay such high rates as to make the auction toxic. The Euro crisis is quickly evolving into a Gordian Knot....U.S. markets are at near-critical levels. The uptrend line that caused the last bounce (S&P 1140) is around 1145. Key support levels are 1140, 1132, 1120 and ultimately 1101. The new Battle of Thermopylae is on the way."
A
month after the short sale ban was implemented in French and Spanish
banks, we thought it important (and perhaps educational for our European
politician readers) to note the performance - French banks are down 14% and Spanish banks -8%.
Can we finally put to rest the idea that a speculative cabal of mean
short-sellers is responsible for the market's jitteriness? Perhaps it
is simply a market trying to discern reality from manipulated
machinations?European Liquidity Blow Out As Euribor-OIS, USD Libor, And ECB Deposit Usage All Soar To Yearly Highs
There are only three charts that matter currently for a snapshot of the liquidity pulse in Europe. And unfortunately, it continues to be in V-Fib, according to the Euribor-OIS (spread between central bank and interbank borrowing or explicit riskiness in non-printing press backstopped market), the 3M USD LIBOR (or the funding need for USDs), and the ECB Deposit Facility Usage (lack of safe alternatives on where to plant bank cash). Well, the first is at 84.9bps, +2.9, the widest since March 19, 2009, the second is at 0.343, up from 0.338%, and the widest since August 18, 2010, and deposit facility usage is at €182 billion, the widest since July 2010.
David Bianco CDS Hits All Time High Following His S&P Price Target Hike From 1,400 To 1,450
Just when one thought Wall Street could not become more full retard, here comes David "Kermit" Bianco who, perfectly oblivious of the world ending one broke European country at a time, has just released the following: "S&P 500 2011 year-end target remains 1400, 12-month target raised to 1450 from 1400 12-month target raised on time value and conviction in 2012 EPS being ~$100 barring recession." Barring recession? Has this "strategist" even looked at a TV in the past three months, let alone exited the island of lunatic asylum that is Manhattan? But wait, the humor continues, although we are 100% confident this joke of a snake oil salesman will be on CNBC any minute. As a reminder, Bianco had an S&P price target of 1650 until October 6, 2008, or after the Lehman bankruptcy. He would end up being off by only well over 100%.1 Dead, 1 Injured Following Explosion At Nuclear Waste Reprocessing Facility In Marcoule, France
Update: NO CONTAMINATION FROM EXPLOSION AT FRENCH MARCOULE NUCLEAR SITE - FRENCH POLICE: RTRS... hopefully the accuracy here is better than at Fukushima
The following story is very fluid and we are following closely. Minutes earlier shares of french EDF have come under selling pressure following broad headlines of a explosion at a French nuclear power plant. Here is what we have found so far...
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
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