The Savings of Millions of People are Going to Vanish in Less Than 12 Months






Prediction of Imminent End Of The Eurozone And A Global Financial Apocalypse

The Huge Bank Dexia in severe trouble/Bernanke ready to supply stimulus to faltering economy

 

 

Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 56 minutes ago

Good evening Ladies and Gentlemen: Europe continues to implode as Dexia, the largest bank in Belgium is close to default.  The default here will bring down the two largest banks in France, Societe Generale and BNP Paribas.  The bankers do not want investors purchasing gold and silver so they whack and sell huge amounts of non backed paper in the hope that they purchase stocks.  The stock market

All For One, And One For All...

Ignoring the knee-jerk reaction of stocks to rally 4% on the headlines that Dexia will be save and other banks will be recapitalized, it is worth thinking about what this really means and the next logical steps. For now I will not even focus on the fact that this was from a meeting of Finance Ministers and not heads of state.  I left my "EU Leadership" trading cards at the office, but so far, not many of the big names, who can actually close the deal, have spoken.  I won't even focus on the fact that Dexia has been on the fringe of "contagion" discussion.  Look at articles about "contagion" or "debt crisis" and PIIGS and French Banks and German Banks and Italian Banks show up in nearly every article.  Dexia is discussed less frequently, though ZeroHedge has been on top of it for awhile.  So stocks rose 4% on a plan of a plan to plan a plan for a bank they hadn't heard of until this morning.  Hmmm.

Soaring Financial Vol Leads CME To Announce A 33% Margin...Cut

Because while soaring volatility in gold and copper, not to mention silver, results in one after another margin hike to "cool off the speculators", when it comes to financial stocks, especially in the "tail wag the dog" variety where the synthetic drives the stock price, a surge in vol means a cut in margins, or 33% to be precise. As of minutes ago, the biggest futures exchange just cut XAF margins by a whopping 33%, exploding vol be damned, or actually, because of it. The CME would be even more delighted if clients were to pledge their gold as collateral, especially following yesterday's expansion of gold's marginability from $200 to $500 million. So just in case anyone missed the message from today, when fins plunged then soared on a rumor, the CME would be delighted if you could repeat all of that but this time with 23% more margin. Expect more margins cuts, this time in ES offset by margins hike in all other instruments, especially of the public enemy #1 variety such as precious metals and crude.

US Starts New Fiscal Year With $14.837 Trillion In Debt, $142 Billion Increase In Two Days

Anyone tearing their hair out trying to answer how it is that this great Keynesian experiment of a nation managed to sneek by with so little new incremental debt over the past month can now relax. As Zero Hedge reported yesterday, the US closed out Fiscal 2010-2011 with a $95 billion surge in debt in one day brining the total to just under $14.8 trillion. That, however was not nearly enough to settle all outstanding debt, and on the first day of the next fiscal year, Timmy G added another $47 billion in debt, to have a closing balance of $14.837 trillion on the first day of the 2011-2012 fiscal year. In other words, in just the past two work days, America has technically settled a whopping $142 billion in debt. There was a time when a year was needed to issue this much debt. Then, a month. Now, we are officialy down to two days. What is ironic is that the recently expanded debt ceiling of $15.194 trillion has just $400 billion of additional dry powder. At this rate, it won't last the US until the end of the calendar year.

Guest Post: Credit Spreads In The New Normal

At its very core, to price something complicated, you lay the most similar liquid asset you can find next to it that has a liquid price. You deconstruct the liquid one by its risk premia, and then you reconstruct the one you are trying to price by applying suitable risk premia to it. The output is fair value. All the talk of “Japanification” is just a variation on this theme at a pretty remarkable order of complexity. Call it modeling, call it storytelling, whatever: one compares an economy going through a multi-year banking crisis with one that is just a few years into a banking crisis. Compare trajectories, similarities, and differences. Then figure out what matters and what doesn’t in a macro-sense. One has either past observation to understand reality, or rely on dumb luck to understand future events.





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2011 US Mint Silver Set To Have Bigger Sales Than ’86 to ’92, combined! 

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