Latest Greek Economic Collapse Means Country Will Soon Be Out Of Eurozone, Or Bankrupt, Or Both

 

Once is fine, twice - passable, three times - eh... But when one has missed forecast after forecast after forecast as many times as Greece, one wonders what the hell is going on. Earlier today we got confirmation that what everyone with half a brain (obviously this excludes the apparatchik idiots in Brussels) had been expecting had come to pass, namely that the Greek economy has completely imploded. Per Reuters: "GDP contracted at an annual pace of 7.3 percent in the three months to June, from 8.1 percent in the previous quarter, according to seasonally unadjusted figures by statistics agency ELSTAT, while unemployment stayed near record highs. "Domestic demand is incredibly weak, exports do not benefit from global economic growth ... A 2011 deficit of 8.5 percent to 9 percent doesn't seem implausible," said Ben May, a London-based analyst at Capital Economics. Unemployment fell slightly to 16.0 percent in June, helped by seasonal tourism jobs. But it remained close to a record 16.6 percent it hit the previous month, well above its 11.6 percent level in June 2010. And as rumblings from everywhere confirm, most notably from Greek 1 Year bond yields which are pennies away from 100% (i.e. one doubles their money if Greece does not go broke n the next 365 days), and Greek CDS which now predict a virtual certainty of bankruptcy, Europe has had enough of being used as a liquidity source over and over. Because as speculated ever so often, Greece (and now Italy) realized that the balance of power in Europe is entirely with the broke nations: after all what will Brussels do: blow itself up by kicking Greece out? As a result, Greece continued to promise and promise while doing nothing. Well, it appears that Europe is now about to test just what happens when Greece is kicked out. According to sources Greece will either be kicked out of the Eurozone by the end of the year or will be insolvent in the next 4 months. Either way, things are about to get truly exciting. And unfortunately, what Greece is doing by leeching of the Eurozone is precisely what the US is doing by "leeching" of the (temporary) dollar reserve standard. As Greece is about to find out, all good things come to an end. Soon after, America will also discover that those 4 week Bill yields of 0.000% will be a much cherished memory.





Eurocalypse Trading Opinion and Analysis…

Posted by: Reggie Middleton

Post date: 09/08/2011 - 10:49

Trading opinion and analysis, 9/7/2011

Jumping On The Bandwagon Has Never Been My Style

Admin at Jim Rogers Blog - 39 minutes ago

Jumping on the bandwagon has never been my style. It`s when I have moved away from the crowd that I have usually made my best investments. - *in A Bull In China* *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.* 

 

 

 

 

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I Am Sure Money Printing Will Come Back

Admin at Marc Faber Blog - 46 minutes ago

Yes, I’m sure money printing will come back. We will not have an official QE3 announced immediately, but I think that if the stock market weakens further, they (central planners) will take some additional printing measures along with Europe for sure. - *in Liberty CPM* Topics: SPDR Gold Trust ETF (GLD), SPDR S&P 500 Index (SPY) *Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.* 

Rick Santelli Tells Arch Globalization Advocate Friedman He Is An Idiot

Following today's New York Times invasion of CNBC, where two of its most irrelevant columnists are now part of CNBC's most irrelevant hourly block so at least it is symmetric, Rick Santelli and "The Earth is flat...but I sure am round" author Tom Friedman had a choice exchange of words which culminated with Rick Santelli finally telling the world's most overhyped patron saint of globalization the bitter truth. In the meantime, not even the very non-flat Friemdan had an answer to Santelli's very simple question: is Social Security a ponzi scheme... And while we are there, we wonder just what noun would be used to describe Friemdan if asked if the entire Keynesian model is an even bigger ponzi.

August Is 7th Worst Month Ever For SAC Capital (Out Of 229)

Think only you lost money in August? Wrong: even such titans of fair and perfectly legal stock picking as Stevie Cohen lost money. How much? Lots. At -2.96%, this was the first negative month for blue eyes since June 2010, and the single biggest monthly loss since November 2008.

Commodity Levitation Since Last FOMC - Inflation or Growth?

In the month since Bernanke extended ZIRP til mid-2013 and explained that he really is not out of bullets, we thought it interesting to look at commodity (or perhaps real currency) movements since then. It is rather notable that Dr. Copper, oh so notably used by the cognoscenti to explain global growth remains miraculous, has underperformed the potentially more critical exchangeable stores of value such as Gold, Silver, and Oil. Even more surprising, and potentially signaling the disaster that is Europe, the USD (based on the Dollar Index) is stronger by 2.5%.

Guest Post: The Market Reminds Me Of High School

If the market always finds the pain trade, making an entire industry feel like they are back in high school, would have to be the mother of all pain trades. It seems like there is a "cool" group that knows what to focus on.  What is hot and trendy and important at any given moment.  Some kids are left wondering why they were part of the cool group last year, but suddenly are sitting by themselves at the cafeteria (hedge funds down 10% or more on the year, know that feeling well).  There are even a few new kids at the cool table - most noticeably, that weird kid who always talked about gold is suddenly popular.

Guest Post: Where To Find The Best Jobs In The World

If you’re one of the tens of millions of unemployed in the western world, I have good news and bad news. The bad news is that your situation at home isn’t getting better anytime soon. The good news is that many foreign job markets are quite strong. Here in the Middle East, there are a number of countries that shook off the effects of the economic downturn and are still growing feverishly. If you’re looking for a job, this may be a good place to start. Most of the positions, especially the better paying jobs, have great benefits. And no I’m not talking about casual Friday. In this part of the world, it’s common for employers to provide a house and chauffeured car in the package, and sometimes even private schooling for the kids. Commissions and profit shares are also common, depending on the position. And as an added benefit, most of these places have little or no local tax… so you keep what you earn. By way of comparison, if you make $4,000/month ($48,000 annually) in Abu Dhabi, that’s the after-tax equivalent of making $65,000/year in the US. If you make $7,500/month ($90,000 annually) in Dubai, it’s like making $130,000 in the US. What’s more, US tax law excludes the first $92,900 from income tax. Other nationalities pay nothing.

RANsquawk US Afternoon Briefing - Stocks, Bonds, FX etc. – 08/09/11

Bring Back the Uptick Rule!

Posted by : madhedgefundtrader

Post date: 09/08/2011 - 09:25 

 

 

 

 

Dan Loeb Discloses 5.1% Stake In Yahoo, Sends Letter To BOD Demanding Complete Company Overhaul

The Yahoo drama just got more exciting with the inclusion of Mr. Pink, who just announced he owns 5.1% of YHOO shares, and has submitted a letter in which Third Point "details our principled demands for sweeping changes in both the Board of Directors (the “Board”) and Company leadership, and outlines the hidden value of Yahoo, which has been severely damaged – but not irreparably – by poor management and governance." Read on to see what has the famous activist pisse this time around.
 

 

 

 

 

 

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