From #Spailout To #S...panic
When
US equity futures, Treasury futures, and FX markets opened yesterday
to a 'risk-on / reality-off' scenario, we made it clear that we
suspected things would look very different by the European close. Sure
enough, the markets in Europe (and US) have seen a dramatic shift in
sentiment as the realization of the end-game here grows louder. It is
evident that any strength, any rip, is to be sold. EURUSD rallied 1.2% at its best near the open last night but is ending 0.2% lower from Friday's close. Europe's broad equity market is closing modestly red after being up almost 2% at the open. Europe's
financial credits led the equity market once again as senior spreads
swung from a 20bps rally to a 10bps sell-off by the close.
Italy was crushed after opened up over 4% to close down over 2.75% as
Italian banks were halted all the way down. Spanish banks gave back all
their gains (SAN was up almost 6% at the open and closed red).
Investment grade credit notably underperformed and high-beta XOver
swung from a 35bps tightening to close modestly wider. European
sovereign bond spreads all opened notably tighter but were crushed by
the close with Spain and Italy underperforming (+60bps and +50bps from their intraday low spreads respectively).
Quite simply, Europe has swung from Spanish bailout fantasy to
Europe's contagious panic reasserting - and that was after a weekend
when Spain (and Spanish banks and every bullish trader out there) got
everything they wanted. It would appear that the investing public has
become better-educated at what is really going on in Europe and how
these interim 'solutions' are all to be faded as Franco-German
relations remain tense and Germany stoic. In liquidity/safety land, Swiss 2Y rates plunged 7bps to a new record -35.3bps.Spain and The Runaway Euro Bailout Train
06/11/2012 - 08:58
Eurosis For Dummies - A Timely Reminder
Where does the money for the bailouts come from? All the governments in Europe including Greece, Italy, and Spain.
And who is allowed to receive money from it? All the governments in Europe including Greece, Italy, and Spain.
How can that possibly work? It can't, but Europeans like bad ideas that sound nice!
European Insurer Needs Insurance As $6B Of Its Bonds Are Instantly Subordinated Due To "Spain's Pain"
06/11/2012 - 11:36
European Bailouts: It’s Absurd Economics And Absurd Morality
Admin at Jim Rogers Blog - 1 minute ago
The way system is supposed to work – when you fail you fail – competent
people come in and take over the assets. But what they’re doing is taking
assets from the competent people and giving them to the incompetent people
– it’s absurd economics and absurd morality. - *in CNBC*
Related ETF: MSCI Spain Index (ETF) (NYSE:EWP)
*Jim Rogers is an author, financial commentator and successful
international investor. He has been frequently featured in Time, The New
York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The
Financial Times and is a regular guest on Bloomberg and CNBC.*
Spain's bank rescue won't solve all Europe's problems
Eric De Groot at Eric De Groot - 49 minutes ago
The message of the market, particularly the action in the US bond market,
told us this much early into the trading session. QE to infinity
accompanied by stagflation and localized economic contractions maintains
social order longer than an interconnected and highly-correlated, worldwide
depression. Headline: Spain's bank rescue won't solve all Europe's problems
WASHINGTON - A $125...
[[ This is a content summary only. Visit my website for full links, other
content, and more! ]]The Politics Of "Consensus" Is The Politics Of Failure
How do you get "consensus" in politics? You horse-trade. You give everybody something they want. You cut everyone into the deal. That passes for "consensus" in politics: divide the swag. If you want to understand President Obama's failure as a leader, ask (as my friend G.F.B. did) where did he learn politics? In Chicago. Big-city politics boils down to getting the ward bosses, ethnic-neighborhood leaders, Chamber of Commerce and public unions together and making them all happy with concessions, give-aways or some other slice of swag so they all agree to to support some minor policy tweak of the Status Quo. Any constituency left out of the swag distribution squeals like a stuck pig and kills the "consensus." This "making sausage" consensus is passed off as "the only way to get anything passed," but the truth is that it's the politics of failure: nothing meaningful can possibly get done in the politics of "consensus" because 95% of any useful reform must be traded away to get everyone willingly on board.Guess What Else China Is Hoarding
We already know that Chinese imports of HK gold passed all records in the month of April. It appears that the precious metal is not the only hard asset that China has set its sights on.Graham Summers' Weekly Market Forecast (Do We Still Have Faith? Edition)
06/11/2012 - 08:03
The
world still needs gold and other natural resources, but we may need a
new investment model to sustain them, says Byron King who also shares
his perspective on mining in South Africa. Gold Report interview.
The launch into spot price long heaven will not come until the
commercials have divested themselves of most of this massive short
position and are at something approaching a breakeven point. They
know that $12,000 gold and $500 – $1000 silver and beyond is coming and
coming quickly but they will not allow it to happen until they have
substantially reduced their exposure to death of the manipulative short
world as we know it. Besides, they make way too much quick
cash by playing it the way they play it but since the Eastern sovereign
nations are insistent in gobbling up all the hard assets in the world
the commercials know the handwriting is on the wall and it is just a
matter of time before their holy cash cow is skewered by Moses and then
they have to settle for just being tares in the wheat field.
from Arabian Money:
Eurozone finance
ministers panicked this weekend and agreed to a preemptive announcement
of a $125 billion bailout for the Spanish banks, bringing the grand
total for bank bailouts to $600 billion when Ireland, Portugal and
Greece are added.
Money printing on this scale has only ever been good for precious metal prices by historical precedent. The bank bailouts are an example of money creation at the source with banks able to lend more against this new capital injection and sterilising bad debts.
Read More @ arabianmoney.net
Eurozone finance
ministers panicked this weekend and agreed to a preemptive announcement
of a $125 billion bailout for the Spanish banks, bringing the grand
total for bank bailouts to $600 billion when Ireland, Portugal and
Greece are added.Money printing on this scale has only ever been good for precious metal prices by historical precedent. The bank bailouts are an example of money creation at the source with banks able to lend more against this new capital injection and sterilising bad debts.
Read More @ arabianmoney.net
by J.D. Hayes, Natural News:
Europe’s economies have been on a fiscal collision course for years,
what with more people taking from the various socialist systems around
the continent than paying into them. But Greece and Spain are probably
the closest to the abyss, economists warn, and are liable to plunge off
the cliff any day now.
In Athens, where elections on June 17 will decide the country’s place in the eurozone and, maybe, its future as a viable nation, the choices are not good. Voters and politicians must decide to accept painful, deep austerity measures aimed at reducing the country’s massive debt or dropping Europe’s shared currency. But so far the only thing certain about Greece is its paralysis and indecision, both characteristics of which could plunge it into chaos and calamity any day now.
“Evidence of a state tottering on the edge of complete dysfunction is apparent everywhere in Athens,” says a report by The Economic Times (ET). “Traffic signals work sporadically; a sign giving the shortened hours of one of the world’s great museums, the National Archaeological Museum, is haphazardly taped to the door; police officers in riot gear patrol the perimeters of the universities, where a growing population of anarchists, disaffected young people and drug addicts congregate in communal hopelessness.”
Read More @ NaturalNews.com
Europe’s economies have been on a fiscal collision course for years,
what with more people taking from the various socialist systems around
the continent than paying into them. But Greece and Spain are probably
the closest to the abyss, economists warn, and are liable to plunge off
the cliff any day now.In Athens, where elections on June 17 will decide the country’s place in the eurozone and, maybe, its future as a viable nation, the choices are not good. Voters and politicians must decide to accept painful, deep austerity measures aimed at reducing the country’s massive debt or dropping Europe’s shared currency. But so far the only thing certain about Greece is its paralysis and indecision, both characteristics of which could plunge it into chaos and calamity any day now.
“Evidence of a state tottering on the edge of complete dysfunction is apparent everywhere in Athens,” says a report by The Economic Times (ET). “Traffic signals work sporadically; a sign giving the shortened hours of one of the world’s great museums, the National Archaeological Museum, is haphazardly taped to the door; police officers in riot gear patrol the perimeters of the universities, where a growing population of anarchists, disaffected young people and drug addicts congregate in communal hopelessness.”
Read More @ NaturalNews.com
from GoldCore:
Gold climbed on Monday, on news Saturday that Eurozone finance
ministers will help bailout Spain’s banks’ lending 100 billion euros
($125 billion). This helped strengthen the euro and riskier assets, and
hurt the dollar.
This action drove US gold futures up 1.1% to $1,609.30 for August delivery. It saw money managers increase their US gold futures up 27% to 98,426 contracts in the week ended Jun 5th, the biggest jump since September 2009. Silver longs also climbed up 1/3 to 6,549 contracts from 4,912 the previous week. Spot silver reached a daily high of nearly 2% to $29, before edging down to $28.89.
The loan to Spain will actually bring the grand total for bank bailouts to $600 billion when Ireland, Portugal and Greece are added.
EU politicians are again attempting to portray Spain’s €100 billion ‘bailout’ as a victory.
It is nothing more than another short term misguided panacea and a mere sticking plaster on the gaping terminal hole as only the Eurozone debt crisis could.
Read More @ goldcore.com
Gold climbed on Monday, on news Saturday that Eurozone finance
ministers will help bailout Spain’s banks’ lending 100 billion euros
($125 billion). This helped strengthen the euro and riskier assets, and
hurt the dollar.This action drove US gold futures up 1.1% to $1,609.30 for August delivery. It saw money managers increase their US gold futures up 27% to 98,426 contracts in the week ended Jun 5th, the biggest jump since September 2009. Silver longs also climbed up 1/3 to 6,549 contracts from 4,912 the previous week. Spot silver reached a daily high of nearly 2% to $29, before edging down to $28.89.
The loan to Spain will actually bring the grand total for bank bailouts to $600 billion when Ireland, Portugal and Greece are added.
EU politicians are again attempting to portray Spain’s €100 billion ‘bailout’ as a victory.
It is nothing more than another short term misguided panacea and a mere sticking plaster on the gaping terminal hole as only the Eurozone debt crisis could.
Read More @ goldcore.com
from Zero Hedge:
For those of you that keep waiting for some giant change-the-world
event; I invite you to re-gear your perspective. Greece has fallen,
Portugal has fallen, Ireland has fallen and now Spain has followed the
road into Purgatory. These are significant events that are, in fact,
changing the world though none has caused Armageddon to date though they
may by their aggregate but not singular importance. This is also why
Greece is of such key importance; it has nothing to do with staying in
or out of the Euro or of the preservation of the European Union as a
political entity. That part of the equation is barely relevant. What is
of critical importance though is that if they leave the Euro that they
will default on some $1.3 trillion in total debt that can be afforded by
no one. That is the rub and you may ignore the rest of the Eurospeak
that is bandied about from Brussels to Berlin. A default by Greece will
bankrupt and cause re-capitalization at the European Central Bank, it
will throw the IMF into a tailspin and it will play havoc with Target2
and the German Central Bank. Do not allow yourself to be taken in and
mis-directed; this is THE issue and the only issue of real importance.
Read More @ Zerohedge
For those of you that keep waiting for some giant change-the-world
event; I invite you to re-gear your perspective. Greece has fallen,
Portugal has fallen, Ireland has fallen and now Spain has followed the
road into Purgatory. These are significant events that are, in fact,
changing the world though none has caused Armageddon to date though they
may by their aggregate but not singular importance. This is also why
Greece is of such key importance; it has nothing to do with staying in
or out of the Euro or of the preservation of the European Union as a
political entity. That part of the equation is barely relevant. What is
of critical importance though is that if they leave the Euro that they
will default on some $1.3 trillion in total debt that can be afforded by
no one. That is the rub and you may ignore the rest of the Eurospeak
that is bandied about from Brussels to Berlin. A default by Greece will
bankrupt and cause re-capitalization at the European Central Bank, it
will throw the IMF into a tailspin and it will play havoc with Target2
and the German Central Bank. Do not allow yourself to be taken in and
mis-directed; this is THE issue and the only issue of real importance.Read More @ Zerohedge
from Silver Vigilante:
Financial journalist Lars Schall
has published a series of reports in which he presents his experiences
attempting to get institutions like the Central Bank of Russia,
Bundesbank and the NY Fed to address gold and silver price suppression.
What’s been officially allowed to leak to the public is that banks like
JP Morgan and HSBC, first and foremost, are suppressing gold and silver
prices. This policy, as Schall’s work demonstrates, is a coordinated
effort among nearly all international and central banks, not just a
couple private banks.
Even people who subscribe to the notion that western nations are united by a single program – termed the “New World Order” (although, in this humble peasants’ opinion, the “New World Order” is really just a high-tech Old World Order - have their doubts about the role nations like Russia and China play in the global order. It is certainly a question that is marred by contradictory information, but reports such as Schall’s latest, in which he to no avail attempts to get comment from Russia’s central bank, is eye-opening.
Read More @ Silver Vigilante
Financial journalist Lars Schall
has published a series of reports in which he presents his experiences
attempting to get institutions like the Central Bank of Russia,
Bundesbank and the NY Fed to address gold and silver price suppression.
What’s been officially allowed to leak to the public is that banks like
JP Morgan and HSBC, first and foremost, are suppressing gold and silver
prices. This policy, as Schall’s work demonstrates, is a coordinated
effort among nearly all international and central banks, not just a
couple private banks.Even people who subscribe to the notion that western nations are united by a single program – termed the “New World Order” (although, in this humble peasants’ opinion, the “New World Order” is really just a high-tech Old World Order - have their doubts about the role nations like Russia and China play in the global order. It is certainly a question that is marred by contradictory information, but reports such as Schall’s latest, in which he to no avail attempts to get comment from Russia’s central bank, is eye-opening.
Read More @ Silver Vigilante
by Greg Hunter, USAWatchdog:
There has been plenty of calamitous news surrounding the European debt. Greece is insolvent. Spain just got a big bank bailout, and Ireland wants a new bailout deal. No matter how bad it looks in the EU, Paul Craig Roberts says the problems in Europe are “nowhere near as big as the ones here.” The U.S. is printing massive amounts of money to paper over the mess, but it won’t work. Roberts says a collapse of the U.S. dollar could happen at any moment.
It could be triggered by any number of things such as war or a derivatives meltdown. When a former Assistant Treasury Secretary (under the Reagan Administration) and a PhD in economics sounds the alarm bell, people should take cover. Dr. Roberts says, “The cliff dive we are experiencing in housing isn’t over,” and precious metals prices are “being suppressed.” Roberts says, “Gold prices should be rising. Why? Because the debt is rising.” What is the reason why Dr. Roberts thinks the suppression game has gotten so intense? Dr. Roberts says, “The fact that they are driving the price down suggests to me the situation is getting more desperate.” Greg Hunter interviews Paul Craig Roberts one on one about these subjects and more.
Read More @ USAWatchdog.com
There has been plenty of calamitous news surrounding the European debt. Greece is insolvent. Spain just got a big bank bailout, and Ireland wants a new bailout deal. No matter how bad it looks in the EU, Paul Craig Roberts says the problems in Europe are “nowhere near as big as the ones here.” The U.S. is printing massive amounts of money to paper over the mess, but it won’t work. Roberts says a collapse of the U.S. dollar could happen at any moment.
It could be triggered by any number of things such as war or a derivatives meltdown. When a former Assistant Treasury Secretary (under the Reagan Administration) and a PhD in economics sounds the alarm bell, people should take cover. Dr. Roberts says, “The cliff dive we are experiencing in housing isn’t over,” and precious metals prices are “being suppressed.” Roberts says, “Gold prices should be rising. Why? Because the debt is rising.” What is the reason why Dr. Roberts thinks the suppression game has gotten so intense? Dr. Roberts says, “The fact that they are driving the price down suggests to me the situation is getting more desperate.” Greg Hunter interviews Paul Craig Roberts one on one about these subjects and more.
Read More @ USAWatchdog.com
by James Poole, Bloomberg via MineWeb.com
The
Industrial and Commercial Bank of China says investors in China, facing
lacklustre equity markets and property curbs, are looking increasingly
to the yellow metal for safe haven.
Gold-investment demand in China may gain more than 10 percent this year as buyers seek a haven from Europe’s debt crisis and the prospect of weakening currencies, according to the country’s largest bullion bank.
“Investors here want to hold part of their assets in gold to hedge for the risks, especially now that the financial crisis has evolved into a sovereign crisis,” Zheng Zhiguang, general manager of the precious-metals department at Industrial and Commercial Bank of China Ltd., said in an interview in Shanghai.
China will topple India this year as the largest bullion market as rising incomes bolster demand, the World Gold Council forecasts. Gold may gain for a 12th year in 2012 as European policy makers strive to avoid a breakup of the euro zone and the U.S. Federal Reserve weighs more stimulus to aid the recovery. Investors in China, facing lackluster equity markets and property curbs, are looking more to the metal, Zheng said June 6.
Read More @ MineWeb.com
Dear Jim,
It looks like it’s too late for the people we warned here so many times.
I have used Google translator below.
Regards,
CIGA Luis
Network Bank stopped payments, customers furious
Stop the transaction until July for the crisis of the institution.
The website of the Bank Network.
Network Investment Bank has suspended payments, causing great inconvenience to customers. STOP FOR A MONTH. The institute, in receivership since last November, announced that on May 31, the commissioners, "with the approval of the Monitoring Committee and with the approval of the Bank of Italy, have decided to suspend the payment of liabilities of any kind ‘for a month. The stop, communicated through the website of the bank, does not include client financial instruments. It was emphasized that "the measure was needed to tackle the difficult situation of the bank. angry depositors. To the rescue – in the few lines we read online – have stepped forward and the group Sim Consultinvest Savings Bank of Ravenna, but in the meantime, depositors are furious . For all spoke Massimo, police in Milan with his wife and two daughters in Messina: "Nobody told me anything and today (June 4), when I went to pay the mechanic, the ATM was not working. Even the credit can do. ‘ "MI HAVE REMOVED THE MONEY." "Actually," he added, "I have taken my money. In the book I have only 20 euros in cash and the escrow account where the salary is credited to me, how do I make ends meet? ". And to think that Bank Investment Network has as shareholders the names of the first floor of the financial world: Aviva Banco Popular De Agostini and Sopaf. "GUESTS OF PERSONS FINANCIALLY ADVANCED." The customers of Bank Network, financial sources have noted, is composed largely of the "financially sophisticated individuals" able to understand the situation and wait for the definition plan of action by the group and Sim Consultinvest Savings Bank announced the release of Ravenna as special commissioners
Link to original article…
We The Sheeplez... is intended to reflect excellence in effort and content. Donations will help maintain this goal and defray the operational costs. Paypal, a leading provider of secure online money transfers, will handle the donations. Thank you for your contribution.
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The
Industrial and Commercial Bank of China says investors in China, facing
lacklustre equity markets and property curbs, are looking increasingly
to the yellow metal for safe haven.Gold-investment demand in China may gain more than 10 percent this year as buyers seek a haven from Europe’s debt crisis and the prospect of weakening currencies, according to the country’s largest bullion bank.
“Investors here want to hold part of their assets in gold to hedge for the risks, especially now that the financial crisis has evolved into a sovereign crisis,” Zheng Zhiguang, general manager of the precious-metals department at Industrial and Commercial Bank of China Ltd., said in an interview in Shanghai.
China will topple India this year as the largest bullion market as rising incomes bolster demand, the World Gold Council forecasts. Gold may gain for a 12th year in 2012 as European policy makers strive to avoid a breakup of the euro zone and the U.S. Federal Reserve weighs more stimulus to aid the recovery. Investors in China, facing lackluster equity markets and property curbs, are looking more to the metal, Zheng said June 6.
Read More @ MineWeb.com
Dear Jim,
It looks like it’s too late for the people we warned here so many times.
I have used Google translator below.
Regards,
CIGA Luis
Network Bank stopped payments, customers furious
Stop the transaction until July for the crisis of the institution.
The website of the Bank Network.
Network Investment Bank has suspended payments, causing great inconvenience to customers. STOP FOR A MONTH. The institute, in receivership since last November, announced that on May 31, the commissioners, "with the approval of the Monitoring Committee and with the approval of the Bank of Italy, have decided to suspend the payment of liabilities of any kind ‘for a month. The stop, communicated through the website of the bank, does not include client financial instruments. It was emphasized that "the measure was needed to tackle the difficult situation of the bank. angry depositors. To the rescue – in the few lines we read online – have stepped forward and the group Sim Consultinvest Savings Bank of Ravenna, but in the meantime, depositors are furious . For all spoke Massimo, police in Milan with his wife and two daughters in Messina: "Nobody told me anything and today (June 4), when I went to pay the mechanic, the ATM was not working. Even the credit can do. ‘ "MI HAVE REMOVED THE MONEY." "Actually," he added, "I have taken my money. In the book I have only 20 euros in cash and the escrow account where the salary is credited to me, how do I make ends meet? ". And to think that Bank Investment Network has as shareholders the names of the first floor of the financial world: Aviva Banco Popular De Agostini and Sopaf. "GUESTS OF PERSONS FINANCIALLY ADVANCED." The customers of Bank Network, financial sources have noted, is composed largely of the "financially sophisticated individuals" able to understand the situation and wait for the definition plan of action by the group and Sim Consultinvest Savings Bank announced the release of Ravenna as special commissioners
Link to original article…
We The Sheeplez... is intended to reflect excellence in effort and content. Donations will help maintain this goal and defray the operational costs. Paypal, a leading provider of secure online money transfers, will handle the donations. Thank you for your contribution.
I'm PayPal Verified
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