We The Sheeplez- The Coming Economic Collapse.."A Nation Of Sheep Ruled By Wolves" Thomas Jefferson

Monday, September 5, 2011

Bloomberg Ignores Major Stock Market Fall in Europe

Posted by : Econophile

Post date: 09/05/2011 - 15:17

Stock markets fell very hard in Europe today, but if even Bloomberg.com doesn’t mention it, does that mean it did not happen or does not matter?

BIG PIS: The CEO Of Europe's Most Troubled Bank, Dexia, Quits As Contagion Tsunami Sweeps Over Belgium

Just when we thought the world was running out of headlines, here come something that will send futures scurrying for even more safety. According to Belgian Nieuwsblad, the CEO of Belgium's biggest bank has just resigned. As a reminder, Dexia is the one European bank that in the 2008-2009 period borrowed more money from the Fed than anyone else, and which we have discussed on several occasions in the past few months as being rumored to be on the receiving end of a variety of liquidity "complications" and countreparty concerns. Typically rumors of that nature, coupled with the sudden departure of the CEO, end up being proven as fact shortly to quite shortly. In other news, we are happy to announce the expansion of the PIIGS to BIG PIS following the arrival of the latest country to join the sovereign and bank funding crisis.

To Celebrate Labor Day, Italian Unions Occupy Milan Stock Exchange

Three weeks ago we predicted that should the austerity in Italy be truly enacted, then the Syntagma square strikecam would have to be promptly carted out of Athens, and into Rome, where Michele Caruso Cabrera would have to wear a gas mask in some 5 star hotel high above the Piazza Navona. Well, for now the austerity has been delayed, but not for long: the ECB no longer wants to play ball with Berlusconi and even if it takes a complete government overthrow, massive spending cuts are at most months away. In the meantime however, the labor unions have decided to not wait, and in a first for the soon to be en-Greeced country, have occupied the Milan stock exchange. Since next steps from here are all too clear, prepare for yet another interesting overnight futures session, once electronic trading reopens in 3 hours.

Open Europe Briefing On What The German Constitutional Court Ruling Will Mean For The Eurozone Crisis

While today's market action is merely a reaction to pent up negative news over the weekend, all attention now moves to this week's most critical binary event: the much anticipated German Constitutional Court's vertdict on Eurozone bailouts. While a ruling that destroys the eurozone is unlikely, there are quite a few interesting nuances that may come out of the main event on Wednesday. For those who are unfamiliar with the story here is a critical briefing from Open Europe. "On 7 September, the German Constitutional Court will deliver its keenly anticipated verdict on the eurozone bailouts, following several challenges against the rescue packages of Greece, Ireland and Portugal in addition to complaints against the ECB’s bond buying programme.[2] The Court will almost certainly approve the bailouts, fearing that any other decision would spell disaster for the euro. In order to protect its reputation, however, the Court could well demand more influence for the German parliament and lay down additional constitutional red lines – possibly including restrictions on joint debt liabilities in the eurozone – in return for approving the bailouts. Any such limits would hugely complicate any move towards a fiscal union in the eurozone. Injecting more parliamentary democracy into the eurozone crisis is clearly a good thing, but it will also further limit EU leaders’ room for manoeuvre when dealing with the crisis, which in turn could increase market uncertainty. Unfortunately for the ECB, under such a scenario it would once again be forced to pick up the responsibility of lender of last resort, as the EFSF will be too inflexible and unresponsive to play that role."

Labor Day Monday: Spot Gold Hits $1900

Dave in Denver at The Golden Truth - 32 minutes ago

Foreign markets plunged, the S&P 500 futures are down over 2% and Obama has promised to spend a trillion dollars we don't have and can't afford "fixing" roads and bridges. I expect the stock market to get really volatile this month, especially to the downside. Gold/silver/mining stocks will be volatile too - mostly to the upside... *Brother, can you spare an ounce of gold?*

If anyone located in Belarus or any other Country experiencing food riots, high inflation or Hyperinflation, and would like to write about it, please email it to wethesheeplez@yahoo.com and I will post it here.

Thank You

Obama's Labor Day Address

No video here: just audio - like his last "Irene is a national catastrophe" videoconference from the vacation. Soundbites include the following (via Bloomberg):