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."
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“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.”
David Rosenberg On Austerity, Politics, And The Light At The End Of The Tunnel
Gluskin
Sheff's David Rosenberg may be cautious on the outlook for risk assets
and cyclical securities over the near- and intermediate-term, but, he
notes, change is always at the margin, and it usually starts in the
political sphere. Austerity is not some dirty nine-letter word
as the socialists in Europe would have you believe. It is all about
living within your means and living up to your commitments.
There is some good news in the United States with respect to this topic,
but the uncertainty over the extent of next year's tax bite is likely
to cause households and businesses to pull spending back and raise cash,
at the margin, which means the economy won't turn around in time for Mr. Obama.
As was the case with Ronald Reagan, just having a clear and coherent
fiscal plan will part the clouds of uncertainty and encourage capital to
be put at risk rather than sit as idle unproductive cash on corporate
balance sheets. In a somewhat stunning sentence from the
no-longer-a-permabear, he notes that "The future is brighter than you think", but just in case you are backing up the truck, he adds "this does not mean we will not have another recession, by the way — as we suffer through a deflationary debt deleveraging. I'm noticing a certain degree of despair these days, just as I am getting enthusiastic about the future. Much depends on what happens on November 6th
and between now and then we still have the European mess, China hard
landing risks and the U.S. debt ceiling issue to confront. Be that as it
may, those with some dry powder on hand will be in a solid position to
take advantage of whatever forced "panic" selling takes place."Everything You Know About Markets Is Wrong?
The
financial elite - using academe for intellectual cover - want you to
believe that markets are efficient, as defined by the Efficient Market
Theory (EMT). Neoliberal economic philosophy is based on the belief that
neoclassical economic theory is correct. That is, that “markets are
efficient”. Wall Street touts markets as trustworthy and infallible, but
that faith is misplaced. Gullible US politicians believe that
markets are efficient and defer to them. Therefore, US politicians
abdicate their responsibility to manage the overall economy, and
happily for them, receive Wall Street money. Mistakenly, the
primary focus during the 2008 credit crisis is on fixing the financial
markets (Wall Street banks) and not the “real economy.” The financial
elite are using this “cover-up and pray” policy—hoping that rekindled “animal spirits” will bring the economy back in time to save the status quo. This is impossible because the trust is gone.
The same sociopaths control the economy. A Federal Reserve zero
interest rate policy (ZIRP), causing malinvestment, and monetizing the
national debt with quantitative easing by the Fed, and austerity for
the 99% to repay bad bank loans has not worked—and doing more of the same will not work—and defines insanity.Magnificent Mojo Mogambo (MMM)
Richard Daughty, a.k.a., 'The Mogambo Guru' at Mogambo Guru Report! - 3 hours ago
I was, admittedly, drinking heavily, courageously trying to get drunk
enough so that 1) I would have a handy excuse for being so incoherent and
belligerent, and 2) I would not have to think about the inflationary
horrors in prices that will be the ruinous price we pay for the
inflationary horrors in the exploding money supply thanks to the treachery
and stupidity of the Federal Reserve and the loathsome Obama administration.
Unfortunately, at this particular point in time I was neither of the above,
although naturally still blathering in my customary rage. But I was now at
the poi... more »
SPAIN/SPAIN and SPAIN
Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 7 hours ago
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 bondJohn Bryson’s Real Medical Condition
Last
Saturday, it is being reported that U.S. Department of Commerce
Secretary John Bryson was involved in two auto accidents that may have
been related to a seizure he suffered during the incidents. According
to CNN,
Bryson is currently under investigation for a felony hit and run. It
is unclear at this point if his health played a part in either
accident. Police currently don’t believe drugs or alcohol were
involved. Whatever the case, Bryson’s insider status will likely help him escape any significant legal trouble that could arise from the episode. That’s just how plutocracies roll.
Perhaps now is a good time to analyze the oxymoronic reasoning behind a
government bureaucrat in charge of regulating commerce. Those
who had their vehicle plowed into by his Lexus are not the only ones
who have suffered at the hands of Secretary Bryson. It is the
businesses and innovations that will never see the light of day due to
the endless amounts of regulatory red tape which permeate from
Washington into the economy like a deadly plague.
from ArmstrongEconomics:
A lot of people have asked how was it possible to call a bear market in gold for 19 years and then turn around and say the bull market should reach at least $5,000 thereafter with the first window for a possible high forming in 2017? I have stated numerous times that the major cycle for the rise and fall of nations is 224 years. There were 26 panics within that time frame which yield the 8.615 business cycle. I have stated that Britain lost its Financial Capital of the World status with World War I starting in 1915. Britain took that title from the Dutch. How? When William assumed the throne of England in 1689 he brought with him the Dutch ways of finance and the Bank of England began in 1694. That was precisely 224 years and the perfect conclusion of the Pi cycle.
Read More @ ArmstrongEconomics.org
A lot of people have asked how was it possible to call a bear market in gold for 19 years and then turn around and say the bull market should reach at least $5,000 thereafter with the first window for a possible high forming in 2017? I have stated numerous times that the major cycle for the rise and fall of nations is 224 years. There were 26 panics within that time frame which yield the 8.615 business cycle. I have stated that Britain lost its Financial Capital of the World status with World War I starting in 1915. Britain took that title from the Dutch. How? When William assumed the throne of England in 1689 he brought with him the Dutch ways of finance and the Bank of England began in 1694. That was precisely 224 years and the perfect conclusion of the Pi cycle.
Read More @ ArmstrongEconomics.org
from The Economic Collapse Blog:
Many people hype “the coming economic collapse” as if it is some kind
of big summer Hollywood blockbuster. Many people out there write about
it as if it is something that will happen in a single day or over a few
weeks and that it will suddenly change how the entire world functions.
But that is not how the financial world works. The financial world is
like a game of chess – very slow and methodical. Yes, there are times
when things happen very quickly (like back in 2008), but even that
crisis played out over a number of months. Sadly, most Americans are
not used to thinking in terms of months or years. These days, most
Americans have the attention span of a goldfish and most Americans have
been trained to expect instant gratification. They are simply not
accustomed to being patient and to wait for things. Well, despite what
you may have read, the economic collapse is not going to be a single
event. It is going to play out over quite a few years. In some ways we
are experiencing an economic collapse right now. When the next major
financial crisis occurs, many will be calling that “an economic
collapse”. But if you really want to grasp what is happening to us, you
need to think long-term. We are heading for a complete and total
nightmare, but it is going to take some time to get to the end of the
story.
Read More @ TheEconomicCollpaseBlog.com
Many people hype “the coming economic collapse” as if it is some kind
of big summer Hollywood blockbuster. Many people out there write about
it as if it is something that will happen in a single day or over a few
weeks and that it will suddenly change how the entire world functions.
But that is not how the financial world works. The financial world is
like a game of chess – very slow and methodical. Yes, there are times
when things happen very quickly (like back in 2008), but even that
crisis played out over a number of months. Sadly, most Americans are
not used to thinking in terms of months or years. These days, most
Americans have the attention span of a goldfish and most Americans have
been trained to expect instant gratification. They are simply not
accustomed to being patient and to wait for things. Well, despite what
you may have read, the economic collapse is not going to be a single
event. It is going to play out over quite a few years. In some ways we
are experiencing an economic collapse right now. When the next major
financial crisis occurs, many will be calling that “an economic
collapse”. But if you really want to grasp what is happening to us, you
need to think long-term. We are heading for a complete and total
nightmare, but it is going to take some time to get to the end of the
story.Read More @ TheEconomicCollpaseBlog.com
from Jesse’s Café Américain:
“Yet while the rest of the populace was suffering, the rich just got
richer. In 2009 and 2010, years in which millions were unable to find
work, the top one percent reaped 93 percent of the ‘recovery’ income,
and corporations are making more than they ever did. And the Republicans
can still propose even further cuts in the taxes of ‘job creators’
whose only job creation has been for their own lawyers and lobbyists.”
Garry Wills
“The terrible, cold, cruel part is Wall Street. Rivers of gold flow there from all over the earth, and death comes with it. There, as nowhere else, you feel a total absence of the spirit: herds of men who cannot count past three, herds more who cannot get past six, scorn for pure science and demoniacal respect for the present.
And the terrible thing is that the crowd that fills the Street believes that the world will always be the same, and that it is their duty to keep that huge machine running, day and night, forever.”
Federico Garcia Lorca
Read More @ Jesse’s Café Américain:
from TruthNeverTold :
“Yet while the rest of the populace was suffering, the rich just got
richer. In 2009 and 2010, years in which millions were unable to find
work, the top one percent reaped 93 percent of the ‘recovery’ income,
and corporations are making more than they ever did. And the Republicans
can still propose even further cuts in the taxes of ‘job creators’
whose only job creation has been for their own lawyers and lobbyists.”Garry Wills
“The terrible, cold, cruel part is Wall Street. Rivers of gold flow there from all over the earth, and death comes with it. There, as nowhere else, you feel a total absence of the spirit: herds of men who cannot count past three, herds more who cannot get past six, scorn for pure science and demoniacal respect for the present.
And the terrible thing is that the crowd that fills the Street believes that the world will always be the same, and that it is their duty to keep that huge machine running, day and night, forever.”
Federico Garcia Lorca
Read More @ Jesse’s Café Américain:
from TruthNeverTold :
By Gary North, The Market Oracle:
This may sound odd. Conservatives don’t love taxes. They want lower
taxes. Right? They want lower taxes and smaller government.
I wish that were true. It isn’t.
Alexander Hamilton was a crusader for higher taxes and a larger national government in the 1790s. He wanted higher taxes in order to raise money for a higher federal debt. He wanted higher federal debt because he wanted investors in government IOUs to commit to the survival of the United States. Free market economist Thomas DiLorenzo has summarized Hamilton’s position, which he accurately identifies as crony capitalism.
Read More @ TheMarketOracle.co.uk
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This may sound odd. Conservatives don’t love taxes. They want lower
taxes. Right? They want lower taxes and smaller government. I wish that were true. It isn’t.
Alexander Hamilton was a crusader for higher taxes and a larger national government in the 1790s. He wanted higher taxes in order to raise money for a higher federal debt. He wanted higher federal debt because he wanted investors in government IOUs to commit to the survival of the United States. Free market economist Thomas DiLorenzo has summarized Hamilton’s position, which he accurately identifies as crony capitalism.
Read More @ TheMarketOracle.co.uk
by Jim Sinclair, JS Mineset:
My Dear friends,
In one corner we have the Exchange stabilization fund and gold banks, their brokers who are clearly in a panic to hold gold below $1600. In the other corner are many central banks elsewhere that fear the viability of their paper currency inventories. In the middle stands the speculators which are basically gambleholics who will always be in the middle of the battle getting pummeled.
Last evening was the worst nightmare of the Exchange Stabilization Fund and gold banks as gold moved up $17 in Asia, therein properly defining the situation in paper currency everywhere.
The EU had gapped up and gold had worked its way up.
The situation is so fragile for Goldman, the primary broker for the Exchange Stabilization Fund selling paper.
Read More @ JSMineset.com
My Dear friends,In one corner we have the Exchange stabilization fund and gold banks, their brokers who are clearly in a panic to hold gold below $1600. In the other corner are many central banks elsewhere that fear the viability of their paper currency inventories. In the middle stands the speculators which are basically gambleholics who will always be in the middle of the battle getting pummeled.
Last evening was the worst nightmare of the Exchange Stabilization Fund and gold banks as gold moved up $17 in Asia, therein properly defining the situation in paper currency everywhere.
The EU had gapped up and gold had worked its way up.
The situation is so fragile for Goldman, the primary broker for the Exchange Stabilization Fund selling paper.
Read More @ JSMineset.com
by Justin O’Connell, Dollar Vigilante:
We have just released the June issue of The Dollar Vigilante.
Here are the first few paragraphs to whet your appetite:
We have just released the June issue of The Dollar Vigilante.
Here are the first few paragraphs to whet your appetite:
Doug Casey often states that he is
very bullish on humanity. He believes that humanity has been ascending
for tens of thousands of years and will continue to do so. When
prompted further as to why he is bullish he often states that technology
is a key factor, further stating, “More scientists and engineers are
alive now than in all of human history combined.”
That’s the good news. Here’s the bad
news. There are more central bankers alive now than in all of human
history combined as well! As Bob Hoye stated in a recent speech at the
Committee for Monetary Research and Education (cmre.org):
“Ninety percent of all central bankers who have ever lived are alive today. Daunting isn’t it?
It gets worse. Ninety-five percent of all the reckless central bankers in history are alive today.”
Read More @ DollarVigilante.com
from The Daily Bell:
Sequester
Could Wipe Out More Than a Million Jobs … In another dire impact
assessment of the more than $1 trillion of automatic cuts in defense and
domestic programs, the Bipartisan Policy Center warned on Thursday that the deep savings
would greatly add to the country’s economic woes by slowing growth and
wiping out more than a million jobs – without putting a dent in the
federal debt. – The Fiscal Times
Dominant Social Theme: If it’s in the budget it has to stay there … forever.
Free-Market Analysis: This article in The Fiscal Times is a bit strange because it doesn’t seem to come to a conclusion about upcoming automatic cuts by Congress. We will, though.
The Fiscal Times is a project of billionaire Pete Peterson, a Wall Street mogul who is surely a scion of what we call the power elite. Peterson, like so many other stars of the 20th century, acquired the reputation of a fiscal hawk without ever dealing with the issue of monopoly fiat money and central banking.
Read More @ TheDailyBell.com
Sequester
Could Wipe Out More Than a Million Jobs … In another dire impact
assessment of the more than $1 trillion of automatic cuts in defense and
domestic programs, the Bipartisan Policy Center warned on Thursday that the deep savings
would greatly add to the country’s economic woes by slowing growth and
wiping out more than a million jobs – without putting a dent in the
federal debt. – The Fiscal TimesDominant Social Theme: If it’s in the budget it has to stay there … forever.
Free-Market Analysis: This article in The Fiscal Times is a bit strange because it doesn’t seem to come to a conclusion about upcoming automatic cuts by Congress. We will, though.
The Fiscal Times is a project of billionaire Pete Peterson, a Wall Street mogul who is surely a scion of what we call the power elite. Peterson, like so many other stars of the 20th century, acquired the reputation of a fiscal hawk without ever dealing with the issue of monopoly fiat money and central banking.
Read More @ TheDailyBell.com
from KingWorldNews:
With continued volatility in major markets, as well as gold and silver, today King World News interviewed James Turk out of Europe. Turk discussed the capital controls being proposed in Europe, bank bailouts and escalating fear, but first, here is what Turk had to say about the recent action: “It has now been 16 trading days since the May low, Eric, which means that the base being formed in the precious metals is getting stronger with each passing day. Importantly, prices have been moving away from the May low, with both gold and silver up more than 4% since then.”
Turk continues @ KingWorldNews.com
With continued volatility in major markets, as well as gold and silver, today King World News interviewed James Turk out of Europe. Turk discussed the capital controls being proposed in Europe, bank bailouts and escalating fear, but first, here is what Turk had to say about the recent action: “It has now been 16 trading days since the May low, Eric, which means that the base being formed in the precious metals is getting stronger with each passing day. Importantly, prices have been moving away from the May low, with both gold and silver up more than 4% since then.”
Turk continues @ KingWorldNews.com
from Testosterone Pit.com:
2010 was a magical year in China. Among the world records: 18 million new vehicles sold. Due to unprecedented stimulus, sales had skyrocketed 33% that year and 54% in 2009—mind-boggling growth rates which catapulted China to the number one new-vehicle market in the world, far ahead of the US which had never sold that many units in a single year, not even during the halcyon days before the financial crisis. In terms of passenger vehicles (excluding buses and trucks), 14.5 million units were sold in China that year, compared to 12 million in the US.
Exuberone, a hormone that governs industry thinking from time to time, had taken over. In January 2011 at the Automotive News World Congress in Detroit, Dazong Wang, president of Beijing Automotive, threw a number into a room: 40 million. That’s how many new vehicles would be sold in China by 2020, he said, roughly 30 million passenger vehicles and 10 million commercial vehicles.
People sucked in air. The number was beyond easy comprehension. But soon, it became a guidepost. Investment in manufacturing plants surged as foreign and Chinese automakers scrambled to get their share of that 40 million—and foreign automakers had to pay a steep price in terms of technology transfer, an inescapable feature of investing in China’s auto sector. For how automakers dealt with that last year, read…. China Puts the Screws to BMW.
Read More @ TestosteronePit.com
2010 was a magical year in China. Among the world records: 18 million new vehicles sold. Due to unprecedented stimulus, sales had skyrocketed 33% that year and 54% in 2009—mind-boggling growth rates which catapulted China to the number one new-vehicle market in the world, far ahead of the US which had never sold that many units in a single year, not even during the halcyon days before the financial crisis. In terms of passenger vehicles (excluding buses and trucks), 14.5 million units were sold in China that year, compared to 12 million in the US.
Exuberone, a hormone that governs industry thinking from time to time, had taken over. In January 2011 at the Automotive News World Congress in Detroit, Dazong Wang, president of Beijing Automotive, threw a number into a room: 40 million. That’s how many new vehicles would be sold in China by 2020, he said, roughly 30 million passenger vehicles and 10 million commercial vehicles.
People sucked in air. The number was beyond easy comprehension. But soon, it became a guidepost. Investment in manufacturing plants surged as foreign and Chinese automakers scrambled to get their share of that 40 million—and foreign automakers had to pay a steep price in terms of technology transfer, an inescapable feature of investing in China’s auto sector. For how automakers dealt with that last year, read…. China Puts the Screws to BMW.
Read More @ TestosteronePit.com
by Bruce Krasting Bruce Krasting Blog:
As of Sunday morning there are no details on the Spanish bank bailout.
The only information released is the amount – Euro 100B. This is a nice
round number.
Last week the IMF suggested that Euro 40B might be the right number. Now we get a deal for 2+Xs that. I think this was orchestrated to leave the markets with the impression that massive firepower has been garnered, and therefore the problem is now contained. Rubbish.
I’ll hazard a guess on how this bailout may be structured:
The EFSF will make a loan to the Republic of Spain. The Spanish government will use this money to recapitalize the Spanish banks. The critical question is what form the deal will take. There are only two options:
Read More @ BruceKrasting.blogspot.com
As of Sunday morning there are no details on the Spanish bank bailout.
The only information released is the amount – Euro 100B. This is a nice
round number. Last week the IMF suggested that Euro 40B might be the right number. Now we get a deal for 2+Xs that. I think this was orchestrated to leave the markets with the impression that massive firepower has been garnered, and therefore the problem is now contained. Rubbish.
I’ll hazard a guess on how this bailout may be structured:
The EFSF will make a loan to the Republic of Spain. The Spanish government will use this money to recapitalize the Spanish banks. The critical question is what form the deal will take. There are only two options:
Read More @ BruceKrasting.blogspot.com
from Unconventional Finance:
from JimRogersChannel:
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