Monday, September 12, 2011

Angela Merkel's Euro Contagion Band Comes Through In The Last-Minute Clutch

The following picture from William Banzai does a good job of summarizing why today the victory may not have been for the bulls, courtesy of a strategically placed and timed rumor, it surely allowed Angela Merkel's euro contagion band to survive one more day. In the meantime, we expect rumor #4 of 2011 that China will bailout Italy (after it was buying Greek bonds, and then Portuguese, then actually balked at buying Italian bonds) to squeeze everyone, and then to fall apart as these things always do in a concerted global Ponzi scheme.

Obama's Solargate Scandal Takes A Turn For The Worse

Dave in Denver at The Golden Truth - 52 minutes ago

From Bloomberg News: *In a deepening scandal that threatens to ensnare members of the Obama administration, PricewaterhouseCoopers found that the company's finances “raise substantial doubt about its ability to continue as a going concern.” Two months later the company was awarded the loan under a green jobs program.* Here's the article LINK It's crystal clear here that Obama rewarded one of his biggest fundraisers with over $500 million in Taxpayer money to invest in a company that was deemed to be at risk as a going concern AND Obama fast-tracked this deal, skipping the standa... more »

Market Soars Following Latest "China Bails Out Europe" Rumor: Expected Rumor Half Life - 15 Minutes

Update: Further negotiations are likely to take place soon, FT says, citing unidentified Italian officials. Ok seriously, enough with this bullshit, please.
How many times can the idiotic market keep falling for the same old rumor over and over and over again? Yes, for those wondering what caused this epic surge in stocks on massive volume look no further than the following FT headline which is precisely the same as what we have seen every single other "Chinese white knight" time, namely that Italy is in talks with China Investment to buy bonds, assets (it also makes it perfectly clear who the real "IMF" is). That said, this is at least the 4th time that China has "bailed out" Europe in 2011. We give this latest rumor a 15 minute half life.

As A Reminder, Here Is What China REALLY Thinks About Italian Bond Purchases

On one hand we have FT "reporting" about Chinese Italian bond purchasing ambitions citing "unidentified Italian officials" one day ahead of a major Italian bond auction (wink wink nudge nudge). On the other hand, we have Reuters, citing a real live Italian Finance Minister (thought not for long) Giulio Tremonti, who tells us a slightly different story...

Rosenberg On The Latest Helping Of "Smoke And Mirrors" From Obama

If you feel like the market took one sniff at the much anticipated Obama, cue horns, bassoons and oboes, "American Jobs Act", and threw up all over this latest Keynesian abortion, you are not alone. Here is David Rosenberg explaining how, unlike Goldman which thought the plan is more than expected, is actually nothing more like a tiny flatulent wind in a feces-storm. He summarizes it best: " I'll put it to you this way. Assuming (i) that the House Republicans do not accept the Obama spending measures, and (ii) half of the tax relief goes into savings and debt reduction, then we are talking about the grand total of $35 billion of net new stimulus from this "jobs plan". That's principally because so much of it is merely extending what is already in the system. At an annual rate, that is a 0.2% boost to baseline GDP growth. In other words: much ado about nothin'. It doesn't even come close to offsetting the ongoing drag from the retrenchment at the state and local government levels." So anyone looking for an explanation why the market is down 4.3% since Thursday, here it is. And what is more disturbing, not even rumors of additional QE on top of the widely priced in Operation Twist, have had any impact. In other words, the time for another Hugh "I suggest you panic"

The End Game For Government Intervention Is Here

Posted by: Phoenix Capital...

Post date: 09/12/2011 - 14:20

Folks, this is the hard truth: the US is broke and our leaders have no clue how to solve any of the structural issues our economy and markets are facing. They’ve spent TRILLIONS propping up the stock...