Bank Run! Italiano Style?

by Reggie Middleton, BoomBustBlog.com:
In March of 2010, or roughly 2 and quarter years ago, I ridiculed Italy’s public proclamations of austerity and fiscal responsibility. I put out a report to my paid subscribers detailing my thoughts therein…
Well, fast forward to today and Bloomberg reports Italy Moves Into Debt-Crisis Crosshairs After Spain (you know, the same Spain that we also warned about in March of 2010):

Italy’s 10-year bonds reversed early gains today in the first trading after the Spanish bailout. Their yield rose by the most in a day since Dec. 8, adding 27 basis points to 6.04 percent. Shares of UniCredit SpA (UCG), the country’s largest bank, had their steepest decline in five months.
“The scrutiny of Italy is high and certainly will not dissipate after the deal with Spain,” Nicola Marinelli, who oversees $153 million at Glendevon King Asset Management in London, said in an interview. “This bailout does not mean that Italy will be under attack, but it means that investors will pay attention to every bit of information before deciding to buy or to sell Italian bonds.”

Read More @ BoomBustBlog.com

 

Credit Suisse Explains "The Real Issue", And Why There Is Two Months Tops Until France Is In The Bulls Eye

"It’s all about Spain”, so now we are cutting to the chase. Recapitalization of the banks versus funding the sovereign is of course a semantic issue given the nature of the interplay. But it enables the attempted finesse we describe below. Given the market’s adaptive learning behaviour, we suspect that this finesse might last two [months]. The eventual denouement should be flagged by symptoms of the failure of  the credit of EFSF/ESM and/or France."

 

 

The Spanish Bailout Explained With One Image

Pretty much says it all.

Charting The Simple Reason Why Every 'Bailout' In Europe Will Be Faded

The bailout bullishness half-life is shrinking - dramatically - as it appears traders have become more aware of reality (and unreality). As we have noted again and again, the self-referencing, self-aggrandizing, self-pleasuring European government and banking systems are becoming more and more symbiotically linked. As JPM CIO Cembalest notes for Spain, Plan A was the 2010 announcement of government austerity targets. Plan B was the 2011/2012 ECB lending program to Spanish banks - to the point where Spanish banks now own around 50% of Spanish government debt. Neither plan worked and so on to Plan C - recap Spanish banks to cover the expected losses forthcoming. Recapitalization of the banks versus funding the sovereign is of course a semantic issue given the nature of the interplay. As Credit Suisse noted this weekend... "Portugal cannot rescue Greece, Spain cannot rescue Portugal, Italy cannot rescue Spain (as is surely about to become all too abundantly clear), France cannot rescue Italy, but Germany can rescue France.” Or, the credit of the EFSF/ESM, if called upon to provide funds in large size, either calls upon the credit of Germany, or fails; i.e., it probably cannot fund, to the extent needed to save the credit of one (and probably imminently two) countries that had hitherto been considered 'too big so save', without joint and several guarantees."

SPAIN/SPAIN and SPAIN

by Harvey Organ, HarveyOrgan.Blogspot.ca:
Good evening Ladies and Gentlemen:
Gold closed up today by $5.40 to $1595.50. Silver added 14 cents to $28.60.
The bankers tried to knock gold down today but it was fruitless as demand is skyrocketing across the globe. I can sum the key events in one word: Spain. Spain announced that they need a bank bailout.
The 10 yr treasury bond of Spain skyrocketed in yield up to 6.50%. The 10 yr bond for Italy closed at 6.03%.
Before heading into those stories and others, let’s travel to the comex and see how trading fared on this first day of the week:
Read More @ HarveyOrgan.Blogspot.ca

Gold Pops, Stocks Drop, And Oil Plops

After opening over 1% higher, S&P 500 e-mini futures plunged to close at their lows of the day (down 1.5%) amid the widest range day in six months. Volume was heavy after ES touched up to its 200DMA at the Sunday night open slide along with Europe's weakness, stabilized at Thursday's closing VWAP around the European close, only to dump in the afternoon (as financials, materials, and AAPL led the plunge). The major US financials lost 5-7% from their opening ticks of the day with Citi, BofA, and MS the worst performers (as AAPL ended -1.5% after being up over 1%). Gold back at $1600 (and Silver) rallied 0.4% (diverging from recent sync with stocks) even as USD strength kicked in - ending the day +0.17% (from a -0.85% low in early European trading). Oil meanwhile ended down over 3% (ending below $81.50) from up 3% in early trading on OPEC chatter and global growth concerns (and we assume correlated risk liquidation). Credit underperformed - leading stocks once again - with IG back to last Wednesday's wides (as cheap macro overlays were laid out). Stocks and HYG (the high-yield bond ETF) plunged into the close to catch up to HY credit. Treasury yields dropped, along with stocks, down 2-5bps from Friday's close, as the 7Y segment outperformed (but were down 11-13bps from their opening high yields). VIX saw a huge range day of around 3.6 vols as we closed back above 23.5% and implied correlation soared almost 6pts to 74.5 (biggest pop in 7.5 months). Realized cross-asset class correlation rose significantly and remained extremely high into the close implying very systemic market movement - which given the weakness after-hours seems worrisome.

Gold Daily and Silver Weekly Charts - Metals Rise in a Flight to Safety - Refuse to Lose

SP 500 and NDX Futures Daily Charts - Rough Day for the Bulls, Tyranny of Money

 

 

Goldman Sets New Speed Record In FaceBooking Clients

First thing this morning we warned our readers that we smelt a rat. The reason: at roughly 12:30 am Eastern this morning, or just before the European open, Goldman's Francesco Garzarelli sent out a note trying to spin the Spanish bailout as favorable. More importantly, they told their few remaining clients to go long Spanish 3 Year bonds... Long story short, as the chart below shows, we probably have a new world-record in the short amount of time it took Goldman clients to get totally Facebooked by following the firm's advice to buy 3 Year Spanish Bonds. Note the yield on the short-paper below.

At The End Of May NYSE Short Interest Soared To November 2011 Levels, Leading To Epic Short Squeeze

Wondering just what precipitated the near-record short covering squeeze in the first week of June on nothing but speculation of a Spanish bailout (hence materialized, and proven to be a massive disappointment), and the latest Hilsenrath rumor of more QE? Look no further than the chart below: as of the end of May, the short interest on the NYSE soared by over 800 million shares, bringing the total to 14.3 billion, the highest since November 30, when the market was 6% lower. And since the street's repo desks were fully aware the market was overshorted from a historical basis for this price level, it would be very easy to initiate a short covering squeeze, kicking out the weakest hands which had piled in in the second half of the month. The issue is that now that these shorts have been burned once more, even as the market is once again tumbling, and there is no easy way to spook a liftathon when every offer is lifted regardless of price, the next attempt at levitating the market on mere speculation and innuendo will be far more difficult. At this point it is all up to the Fed: unless Ben delivers in 9 days, it may get very ugly. And of course there is the apocalyptic scenario, where Ben does hint at the NEW QE, and the market pulls a Spain bailout, ramping higher as a well-habituated Pavlovian dog, only to plunge. Because if the central bank is unable to lift the stock market, which accounts for 68% of all US household assets... what else is left?

Long Term Food Storage Room

from usfreedom22:

 

Yanis Varoufakis on Europe’s “Dickensian Workhouse” and the Fiscal Waterboarding of Spain

from CapitalAccount:

Welcome to Capital Account. When we talk about bank recapitalizations or rescue plans, what usually captures headlines are dollar or euro amounts, the names of various abbreviated, bailout vehicles — be they the EFSF or the ESM — top politicians, technocrats and international organizations like the IMF. This latest “Spanish bailout” is no exception. Dubbed a bailout for Spain by the media, this is really a 100 billion euro bailout for Spain’s banks that adds to the tab of the already indebted Spanish government. But is this really just a blood wedding between banks and the state that will end in a blood bath of pain threatening to consume all of Europe in its wake? Are these really solutions that channel the workhouses of the Victorian era, of a Dickens novel, in their conditions?

Italian BNI Bank Declares BANK HOLIDAY until July 1st – People in Panic

from morningmayan:

BTFD...Keep Stacking...

The Underground Success Story: Collecting Circulated Morgan Silver Dollars

by Al Doyle, CoinWeek.com:

There’s no lack of enthusiasm just because the circulated Morgan specialist often operates with limited funds. These are the people who hang out at the local coin shop picking up a precious silver dollar or two on a regular basis.
“Circulated Morgans allow you to be a collector while investing in silver,” said Louis Fogleman of The Coin Shop in Farmington, N.M..
Even with the occasional key, circulated Morgan dollars are primarily an area for the person whose budget is closer to Ralph Kramden than Ralph Lauren. “Not everyone collects gold or MS-65s,” Fogleman said. “With circulated Morgans, you can start small and build from there.”
Read More @ CoinWeek.com

The Situation Is Even More Dire Than I Imagined

from TF Metals Report:

Our pal, SRSrocco, has penned another fantastic essay and he offered it as a guest post here at TFMR. I gladly obliged to print it because it’s very well done and it is imperative that you read it. Thanks to SRSrocco and Harvey Organ for providing this information.
MY CONVERSATION WITH HARVEY ORGAN:
The Situation Is Even More Dire Than I Imagined
This past Friday night I had the most interesting conversation with Harvey Organ.  The inspiration to contact Harvey came from a correspondence I had with Doc at Silver Doctors.  Doc was getting ready to release his interview with Harvey when he relayed this rumor of big problems at Barrick’s Pascua Lama Project… another interesting development from Harvey.
Read More @ TF Metals Report.com

The CBO Sees the Economic Cliff Ahead

By: Ron Paul, Gold Seek:
Last week the Congressional Budget Office (CBO) issued its annual long-term budget outlook report, and the 2012 numbers are not promising. In fact, the CBO estimates that federal debt will rise to 70% of GDP by the end of the year– the highest percentage since World War II. The report also paints a stark picture of entitlement spending, as retiring Baby Boomers will cause government spending on health care, Social Security, and Medicare to explode as a percentage of GDP in coming years.
While the mainstream media correctly characterized the CBO report as highly pessimistic, they also ignored longstanding errors of methodology in CBO estimates. And those errors tend to support arguments for higher taxes and government spending, when in fact America needs exactly the opposite.
As Paul Roderick Gregory explained in a recent Forbes column (http://tinyurl.com/cf746dl), CBO has always applied wrongheaded assumptions inherent in Keynesian economics when forecasting future deficits – no matter how many times both history and economic theory have proven such assumptions incorrect. In particular, CBO seems wedded to two enduring Keynesian myths: First, that higher taxes necessarily increase federal revenue and have no negative effect on the economy; and second, that lower government spending hurts the economy. Neither is true, of course.
Read More @ GoldSeek.com





More then Plausible... I don't know this guy...you decide...

Alert From International Banker-This Is Huge

from Steve Quayle:

Steve tell your listeners to ignore ETFs and continue buying Physical SILVER and GOLD no matter what “spot price” is. Please tell them to take cash out NOW!!!! Only keep in bank what you can afford to lose and what you need to pay bills and expenses. Please tell them to get money out NOW!!! They have till December the latest to do so. Be mindful it CAN HAPPEN SOONER. Prices of Metals without manipulation $1000 SILVER $5000 GOLD.

Here is the latest truth on Spain. The bailout already happened by stealth from very reliable sources. My sources are never wrong. The Bank holiday is going to spill over to Spain, Portugal and France. The Flight to safe harbor now is the UK. From there you will see flights to the US dollar. The main players have moved to Gold. Watch for another shock to SLV and GLD market. This will cause shaky uncommitted hands to dump more SLV and GLD physical. ETF markets will take massive hit.
Germany will start to have massive upheaval as their banks Duetche Bank in particular is over exposed to Spanish Flue, solvency crunch will hit Germany, look for Germans to go mad over the fact they can not have access to their funds.
Read More @ SteveQuayle.com

Fleckenstein – Stock Market Is A Farce, We’re At The End Game

from KingWorldNews:

After the initial euphoria, following the Spanish bailout, European and US stock markets have surrendered early gains. Today King World News interviewed Bill Fleckenstein, President of Fleckenstein Capital, to get his take on where we’re headed. When KWN last spoke with Fleckenstein, he predicted that stocks would tank, and the Dow tumbled over 900 points in less than 30 days. When asked about that call and what investors should expect going forward, Fleckenstein responded, “I happen to catch that moment in time correctly. The stock market is kind of a farce, which is not to say that stocks are uniformly expensive because lots of them aren’t. On the other hand, any bid over one cent for any financial institution presupposes that you know something about what’s in the entity, and in almost all cases you can’t.”
Fleckenstein continues @ KingWorldNews.com

The Final Chapter Ends Very Well for the Goldbugs

by David Schectman, MilesFranklin.com:
I’ve noticed an interesting thing about us gold bugs. On the surface, we reek with conviction and are certain of our bullishness. On the surface. But so many of us harbor doubts. There is a tug of war going on between “I know what I’m doing,” and “But what if I’m wrong.” We don’t admit it, not even to our self, and we look outward for people to lean on, people to tell us what we want to hear.
The conflict stems from a clash between short-term market moves and long-term fundamentals. The price of gold should not trade all over the map. For around 80 years it stayed stable at $20 an ounce. Then it locked in at $35 an ounce for another near 40 years. Nobody worried about the price today or tomorrow.
But in today’s gold market, the price is set not by the buyer of the physical commodity – the price is set by large pools of money, controlled by traders and fund managers. But they are all very, very short-term oriented. It is today’s price, this hour’s price, and this minute’s price that concerns them.
Read more @ MilesFranklin.com

How to Conduct Psychological Operations

from Public Intelligence:
Psychological operations (PSYOP) have long been used by militaries around the world to coerce populations into acting in a manner favorable to their mission objective.  The product of these operations, which is commonly called propaganda when distributed by enemy forces, is a mixture of complex social research, art direction and psychological theory designed to manipulate its unsuspecting recipient into modifying their behavior in a way favorable to those conducting the PSYOP.  The message conveyed through a PSYOP can often stray into deeply emotional and personal territory that is intended to trigger a profound psychological response.  For example, U.S. and British troops fighting in Italy and France during World War II were subjected to a barrage of leaflets distributed by German forces describing the futility of their mission, encouraging them to take the “POW life insurance policy” and instructing them that their girlfriends back home were being taken advantage of by Jewish businessmen.  The methodology behind these persuasive psychological tactics is described in detail in U.S. Army FM 3-05.301 Psychological Operations Process Tactics, Techniques, and Procedures, which provides fascinating insight into the methods used by PSYOP soldiers to modify the behavior of targeted populations.
Read More @ PublicIntelligence.net

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