from Silver Doctors:
Contagion fears and panic appear to have reached France’s shores ahead
of Sunday’s Greek vote, as Max Keiser has received a first-hand account
that France’s large Banque Postal stopped outgoing bank wires due to
‘technical glitches’, and also stopped cash transactions beginning at
8am Friday!
A global financial collapse and subsequent bank run could occur within minutes-hours once the trigger is detonated- which appears to be a possibility (although likely remote) with this weekend’s rhetoric from numerous Central Bankers stating they will provide whatever liquidity is necessary .
As a precaution, we recommend readers take the time Sunday to ensure they have a minimum of 1-3 months supply of necessities on hand, and as always, protect your financial assets with PHYSICAL gold and silver held in your own possession.
Read More @ SilverDoctors.com
Contagion fears and panic appear to have reached France’s shores ahead
of Sunday’s Greek vote, as Max Keiser has received a first-hand account
that France’s large Banque Postal stopped outgoing bank wires due to
‘technical glitches’, and also stopped cash transactions beginning at
8am Friday!A global financial collapse and subsequent bank run could occur within minutes-hours once the trigger is detonated- which appears to be a possibility (although likely remote) with this weekend’s rhetoric from numerous Central Bankers stating they will provide whatever liquidity is necessary .
As a precaution, we recommend readers take the time Sunday to ensure they have a minimum of 1-3 months supply of necessities on hand, and as always, protect your financial assets with PHYSICAL gold and silver held in your own possession.
Read More @ SilverDoctors.com
Merkel Just Says "Nein"
Any hopes that Germany may bend and allow Greece a little leeway in its bailout negotiations, buying at least a little goodwill with its people have just been dashed. Not only that, but readers may recall last week's Die Zeit article that a third Greek bailout may be in the workd. Well, forget it. From Reuters:- #204a87;"> GERMANY'S MERKEL SAYS CANNOT ACCEPT ANY LOOSENING OF AGREED REFORM PLEDGES IN GREECE AFTER ELECTION
- MERKEL SAYS DOES NOT SEE ANY REASON TO SPEAK ABOUT A NEW AID PACKAGE FOR GREECE ON TOP OF THE TWO ALREADY AGREED
- GERMANY'S MERKEL EXPECTS QUICK FORMATION OF NEW AND STABLE GOVERNMENT IN GREECE
A Trading View On The Euro Currency
Admin at Marc Faber Blog - 1 hour ago
Marc Faber is an international investor known for his uncanny predictions
of the stock market and futures markets around the world.
No let-up for Spain, Italy pain after Greek vote
Eric De Groot at Eric De Groot - 2 hours ago
The long-term structural problems still plague the euro zone regardless of
any election outcome. The Euro's trading response to the Greek election
results and surrounding hype reflect it (chart 1). Real change tends to
come from market forces of panics and crises rather than voting booths and
best intentions. Chart 1: EUR/USD (EURUSD=X) Source: finance.yahoo.com
The...
[[ This is a content summary only. Visit my website for full links, other
content, and more! ]]
The Worse The Economy Becomes, More Money Will Be Printed
Admin at Marc Faber Blog - 3 hours ago
"It is clear that the worse the economy becomes, the more the money
printers will be at work." - *in Blanchard Online *
*Related ETFs, SPDR Gold Trust (ETF), SPDR SP 500 ETF (NYSE:SPY), iShares
Silver Trust (ETF) (SLV)*
*Marc Faber is an international investor known for his uncanny predictions
of the stock market and futures markets around the world.*
Commodities: Serious Supply Problems Facing The World
Admin at Jim Rogers Blog - 3 hours ago
I own commodities because there are serious supply problems facing the
world in commodities. If the world economy gets better, wherever it gets
better prices are going to get higher because of the shortages. If the
world economy does not get better I would rather own commodities because
governments are going to print money. They will print more money, and
throughout history when governments have debased currencies, when they have
printed money, the way to protect yourself and to make money is to own real
assets.
Related: United States Oil Fund LP (ETF) (NYSE:USO), SPDR Gold Trust (E... more »
French Socialists win absolute parliament majority
Eric De Groot at Eric De Groot - 11 hours ago
Forget Greece, the real story is France. Parliament majority enables
Hollande's government to reshape its economic and euro zone policies.
Headline: French Socialists win absolute parliament majority PARIS
(Reuters) - French President Francois Hollande's Socialists won a
resounding parliamentary majority on Sunday, strengthening his hand as he
presses euro zone paymaster Germany to...
[[ This is a content summary only. Visit my website for full links, other
content, and more! ]]Dr. Jekyll And Mr. Jackass - The Two Faces Of Disenchanted Greek Youth
With
the majority of young (and middle-aged for that matter) voters in
Greece moving away from the mainstream parties as they become
disillusioned about their futures, today brings together two sides of
the potential reaction (one of hope and one of despair). In an 80-second
clip, we hear the truth that "leaving the country is a real prospect for a lot of young people unfortunately right now"
as they are left with the difficult choice of whether to "Leave Greece
or stay here and try to live on EUR300-400 per month". Perhaps it is
the comment that "Austerity is not the solution, Austerity is the problem"
that best summarizes their feelings and perhaps leads to the other
'extreme' side of the Greek youth reaction. As neo-Nazi party, Golden Dawn, celebrated their consolidating election performance yesterday with another attack on an immigrant.
A Pakistan national was stabbed last night at Attiki train station. A
video, taken from a mobile phone, shows a number of youths, confirmed
by eye witnesses as Golden Dawn supporters, kicking someone on the
floor. As the video ends, two of the youths can clearly be heard
talking, with one asking the other if he used his knife, with the
assailant confirming this by saying "it went all the way in". Whether
it is the cuts of budgets via austerity or the cuts of the Golden Dawn
supporters' attacks, it is clear that Greece is on a knife's edge and this election merely delays the inevitable exit (or further raises the potential - as we have been concerned about for over a year - of real civil unrest and chaos ensuing).Argentina's Next Nationalization Target: Spanish Gambling Companies
Following
the nationalization of YPF several months ago, Argentina's recent
anti-private industry overtures largely fell off the map. Until the
last few days, when bondholders of Spanish gambling company Company
have seen their holdings seemingly disappear in a big Greece vortex
(modern parlance for infinite drain of wealth): the reason - bonds
plunged on speculation the Argentina gaming industry may be next to go
under sovereign control. From Bloomberg: "Bonds from Codere, the Spanish
gambling company that depends on Argentina for more than half its
earnings, are the world’s worst-performing euro-denominated notes on
speculation President Cristina Fernandez de Kirchner may seize the South
American country’s gaming industry. Yields on the company’s 660 million euros of bonds due 2015 climbed 496 basis points last week to 18.97 percent.
The performance was the worst among more than 2,000 securities tracked
by BAML’s Euro High Yield and EMU Corporate indexes." The problem:
should already highly leveraged Codere's Argentina operations be indeed
nationalized, the bond will almost likely be Corzined, with recoveries
which we expect will be comparable to those of Sino Forest.Cashin On Equity's Premature Victory Lap
Whether
its performance-missing anxiety or premature exuberance, UBS Art
Cashin notes (as we did on Friday) the disconnect between Bonds' less
sanguine appearance and equity's which "seemed determined to take a victory lap even before the polls opened – forget about closed."
As Cashin notes, equities were also helped by the quarterly expiration
as well as the S&P reweighting which seemed to keep a bid under
stocks throughout the day. As the week will be focused on attempts to
form a Greek government (in a relatively light macro data week), the
avuncular Art summarizes perfectly the situation as "Greek elections may just delay and not decide" as markets appear to be sensing the stalemate and yielding initial gains.Complete European Sovereign Event And PIIGS Bond Issuance Calendar - June And July
From Deutsche Bank, below is a list of key events to watch over the next several weeks – events that could have bearing on how the euro sovereign debt crisis evolves. Of particular note: in the next 6 weeks there are 18 or so days on which Spain, Italy or, yes, Greece will be issuing debt. Have that espresso machine ready.What Is Next For Greece?
One European think tank which has been spot on in its skepticism over the past two years, is OpenEurope. Below they share their views on the next steps for Greece.Spanish "Litigation Arb" Trade Is The New Killing It
Having been the first, back in January,
to propose positioning to gain from (or to protect client funds from -
for bond managers) the implied subordination (or cram-downs) that the
ECB's, or any other 3-letter acronym's, unintended consequences cause,
as they decide to bailout the next European nation - via positioning in
non-local-law bonds in all PIIGS nations (or 'swapping' local-law for
non-local-law), our most recent Spanish-specific example has performed
exceedingly well. Last Tuesday, we urged
fixed income managers (for fear of fiduciary duty recrimination) to
swap to the non-local law Spanish bonds and traders to arbitrage the
litigation risk between local- and non-local-law bonds. In that
time, the difference in price between the two bonds has dropped
dramatically as the local-law bonds have dropped almost 8% in price, while non-local-law are practically unchanged. On a 50% margin basis, the trade is up around 80% in real returns in the past week (with the basis shifting from around EUR10 to EUR5.8).And On With The Great Game
It
is the Great Game. They try to lure you into their various traps; I
try to keep you out. They offer headlines from countless sources and I
try to tell you what things really mean. They make use of a giant
propaganda machine and I chant alone in the wilderness. They make up
stories and present them as accurate data and I try to give you the
facts. They want your money and I want you to “Preserve your Capital.”
They are as diabolical in their pursuits as Professor Moriarty was in
his. They are the political masterminds and I am a sort of Sherlock
Holmes trying to analyze and conclude one case after the other. You may
listen or you may not but I pay for my own supper while others ask for
their compensation first. It is their Game, my Game; it is the Great
Game.Five Days Since The Spanish "Bailout": You Are Here
With few (if any) natural buyers of Spanish debt (especially given the lack of CDS-cash basis now), Spanish bonds continue to crumble lower in price and higher in yield/spread. For the first time ever, 10Y Spanish bond yields have passed 575bps over Bunds - currently trading at 7.15% yield. Since the post-banking-bailout open, Spanish bond spreads have soared a remarkable 114bps and whether this is seen as the fulcrum security or Italian bonds (which are also deteriorating rapidly this morning), it would appear that just as Spiegel reports today from the G-20, via a senior EU official: "If Germany Doesn't Make A Move, Europe Is Dead".
Troika Considering Changing Irish Bailout Terms, RTE Says
The Spanish precedent is indeed spreading, and as noted here previously a week ago, the Irish demand to get equitable treatment may be about to be granted:- TROIKA CONSIDERS CHANGING IRISH BAILOUT TERMS, RTE SAYS
- BROADCASTER RTE DOESN'T CITE SOURCES FOR BAILOUT REPORT
Daily US Opening News And Market Re-Cap: June 18
Relief in the markets, after the worst case scenario from the Greek elections was averted, proved to be decidedly short-lived. Although the pro-bailout New Democracy party came in first with 129 seats (with an additional 50 seat bonus) the markets still await confirmation of an actual working coalition given a caretaker government has been in place now for approximately two months. A degree of uncertainty in regards to the demands the new coalition will place on negotiating the country's bailout terms has resulted in many investors being unwilling to get their toes wet just yet. Away from the election fever, rising Spanish yields continue to spook the market with the 10yr yield breaching the 7% level, prompting aggressive re-widening of the 10yr government bond yield spreads. The move comes at a crucial time for Spain as they look to come to market tomorrow in 12 and 18 month bills followed by three shorter dated bonds to be tapped this Thursday. Meanwhile, the FX markets have reflected the shift in sentiment with EUR/USD well off its overnight highs and the USD index firmly supported by the prevailing flight to quality bid. However, the biggest currency move of the day came in the early hours after the rupee (INR) weakened substantially following the RBI's decision to leave rates on hold, this coupled with Fitch changing the country's outlook to negative from stable has kept the currency under pressure throughout the day.Gold Falls Then Ticks Higher – Spain And Italy 10 Year Over 7% and 6%
Gold took a tumble for the first time in 7 sessions in Asia as Antonis Samaras, leader of the Greece's New Democracy Party (pro-bailout) was victorious. Today, Samaras plans to form a coalition with other parties backing the bailout – meaning that Greece’s future in the euro is secure – for now. Gold’s dip in Asia was thought to be due to profit taking and increased risk appetite after the Greek election. However, this increase in risk appetite has been quite short lived with Spanish and Italian 10 year bonds again coming under pressure resulting in record Spanish yields over 7.13% and Italian 10 year over 6% again. Initial gains in equity markets have subsided and the lessening of risk appetite is seeing gold supported. Greece’s exit from the Eurozone is no longer a short term risk however it remains a real risk as does the risk of financial contagion in the Eurozone due to insolvent banks in Spain, Italy and France.Frontrunning: June 18
- Greek radical leftist SYRIZA leader Tsipras says will not join coalition government (as expected)
- Egypt Islamists claim presidency as army tightens grip (Reuters)
- French Socialists vow reforms after big poll win (Reuters)
- Greeks Back European Bailout (WSJ)
- France, Socialists Win a Solid Majority (WSJ)
- Denmark Warns over Pressure on Krone (FT)
- Obama to press Putin on Syria at G20 amid skepticism (Reuters)... Putin to smile
- China Home Prices Fall in Record No. of Cities (Bloomberg)
- Europe Gets Emerging Market Crisis Ultimatum As G-20 Meet (Bloomberg)
- Wolfgang Münchau – What Happens if Angela Merkel Does Get Her Way (FT)
As Europhoria Fades, Spanish Banks May Need Whopping €150 Billion In Loan Loss Provisions
With all the europhoria over Greece, some may have forgotten Spain. It is time to remind them that the real "fulcrum country" of Europe has now shifted a few thousand kilometers to the West, where as also reported on Friday the pain will come primarily from more home price declines (up to another 25% lower from here), and loan loss recognitions. How much? As Market News reports, the number may be as large as €150 billion. Of course, if that full number flows through the insolvent banking sector's bottom line, and forces a comparable FROB capital infusion via any of the bailout channels, this is €50 billion more in bond subordination (because good luck raising the capital via equity) than even the worst case Spanish bailout scenario had anticipated. It also explains why as of this morning, Spanish bonds traded at all time record lows. Because, sadly, nothing continues to be fixed in Greece, Spain, or anywhere else in Europe.Right Now In Greece
And... Spanish 10 Year At Record 7.12%, S&P Futures Down And EURUSD Down
Below is a market recap where we find that, yes, as we expected yesterday, the half life of yesterday's Greek euphoria is shorter than even that of the Spanish bailout.- S&P500 Futures down
- EURUSD down 0.1%
- Spanish 10Yr yield up 24bps to 7.12%
- Italian 10Yr yield up 12bps to 6.05%
So... now what?
Today’s Items:
The Euro-zone economy is virtually flat on
its back. In the U.S., Job growth has been slipping badly for three
months. GDP was an anemic 1.9 percent in the first quarter. Many
economists would call 2 percent a growth recession. Well, at least we
are not in a war… Yet.
In another possible massive lie to fool
the people, British Petroleum, directly responsible for trying to cover
up their poisoning of the Gulf of Mexico, has put out data showing that
oil reserves are growing and new discoveries show we are extracting oil
slower than is being formed. Of course, their obvious aim, putting out
this data, is to prevent government money from going to renewable energy
resources.
From Euro-zone troubles to the dropping
GDP in Brazil and India, the entire financial system is in collapse.
According to Gerald Celente, a tidal wave entrance into gold will happen
when there’s a real collapse and catastrophe that governments and banks
can’t paper over anymore. For the short term, we may see the price of
gold go down, because of manipulation and deflationary pressures, but in
the long term… the sky is the limit.
So, it will be a choice between Obama and
Romney. Both are large supporters of the military industrial complex.
Both love nationalized healthcare. Both show no opposition to the
Federal Reserve System and the banking cronyism it has
institutionalized. Neither has made a peep out of ending the needlessly
expensive and socially degenerating drug war. Yep, a clear choice, come
this November folks.
Supreme Court Justice Ruth Buzzy Ginsburg
had to open her mouth about upcoming rulings around June 25th. She
stated “Those who know don’t talk. And those who talk don’t know.” Since
she decided to talk about it, she is telling the world she doesn’t
know. In addition, she talking in public may be a way of telling
everyone that Obamacare will be dumped completely.
Ronald Page encountered a glitchy ATM at a
Detroit casino and was able to withdrawal almost unlimited withdrawals.
When officials, at Bank of America, figured it out, he had already
gambled away $1.5 million. He has been sentenced for 15 months in
prison. So, if he had given that money to someone he trusts, spent the
15 months in jail, he would not ever have to work again.
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