Sunday, November 6, 2011

Morgan Stanley Says Europe's Pandora's Box Has Been Opened

Have a sinking suspicion that the way the Eurozone has handled the past week's Greek threat has set the stage for the collapse of the Eurozone (here's looking at you Italy, over and over) now that Merkozy has made the possibility of a country leaving the Eurozone all too real? You are not alone: Morgan Stanley's Joachim Fels has just sent a note to clients in which he not only commingles three of the catchiest and most abused apocalyptic phrases of our time ("Emperor has no clothes", "Water Pistol not Bazooka"  and "Pandora's Box") he also warns, in no uncertain terms, that "by raising the possibility that a country might (be forced to) leave the euro, core European governments may have set in motion a sequence of events which could potentially lead to runs on sovereigns and banks in peripheral countries that make everything we have seen so far in this crisis look benign." And when a major investment bank, itself susceptible to bank runs warns of, well, bank runs, you listen.

More On MF Global - It Gets Worse

Dave in Denver at The Golden Truth - 1 minute ago
*We are staring into the dark abyss of our system - Dante's Inferno if you will - but it's being hidden by a veil of deceit and cover-up that may not disappear until the system has incinerated - *Dave in Denver, 11/5/11 I reiterate my call for justice in this situation by giving Jon Corzine a seat in jail in between Bubba and Bernie Madoff. If this were the 1800's, Corzine would be subjected to a public hanging. I'd pay good money to see that. It turns out that several MF customers had requested their money from MF Global several days before MF hit the wall. Usually you can ... more » 

And G-Pap Is Gone...

Federal Reserve Federal Reserve Bank Federal Reserve Bank Of Boston Greece headlines Transparency Headlines only, via To Vima, for now but G-Pap appears to have lived up to his word for now with L-Pap taking over. Lucas Papademos will be the new PM with Venizelos and Dimas as deputies. We still don't have a formal announcement from the government: it wouldn't be the first time a Greek media outlet has frontrun the desired outcome...

Presenting Jim Grant's Greatest Hits (On Money, Banking, Gold And The Fed)

Jim Grant, whose Grant's Interest Rate Observer has been one the world's most informative premium newsletters since 1983, has long been one of Zero Hedge's favorite commentators, not least due to his convergent ideas on monetary policy and the role of central planning in the world, which as Arthemis Capital presented very vividly last week, is the sole marginal decider of risk in the world's capital markets (and thus the most critical shadow political force the world, or rather its bankers, has ever unleashed upon itself). So while we await any news out of Greece, however non-eventful they may be, and at best will see the placement of one Pap ("G"), with another Pap (the "L", who as we profiled is nothing but yet another puppet of the Federal Reserve), here is a compilation of James Grant's best moments on money, banking, central banking, gold and the Federal Reserve System, courtesy of Gresham's Law. It is no wonder that Ron Paul recently said that he would choose James Grant as Fed Chairman if elected.

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