Posts Tagged ‘European Debt Crisis’

Notes From Underground: Nothing New On the Financial Front

October 10, 2012

It seems that we have covered the major themes ad nauseam–European debt, U.S. fiscal cliff, Japanese lethargy in confronting an overvalued currency, Chinese slowdown–and the list goes on and on. Today, the IMF let loose a report that detailed the need for Europe to deleverage its banks to the tune of a possible 4.5 TRILLION EUROS. This is not the aid and comfort that a financially stressed European economy needed. The pains of austerity will be minimal compared to the massive selloff of what ever assets will be dumped on the market. Government retrenchment coupled with private sector rebalancing will undoubtedly lead to a new thrust downward in the adverse feedback loop. The significance of the yield curves will be a critical indicator as the quarter begins to reveal all of the potential hazards with which the global financial system has to contend.

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Notes From Underground: Sarkozy and Merkel Place Europe On Double Secret Probation

October 10, 2011

It is now official: EUROPE UNDER THE GUIDANCE OF THE TWO DEANS OF PSY-OPS HAVE A PLAN FOR RECAPITALIZING THE BANKS AND BOLSTERING THE EUROPEAN FINANCIAL SYSTEM. The world heaved a sigh of relief that the Sunday meeting in Berlin resulted in a PLAN. The intricacies of what the plan entails are a secret, but for today the markets reacted positively, grasping for any sense of hope. The world’s equity markets reacted as if EURO’s were being air dropped all over the continent. The BUNDS were sold as the reallocation trade sent money exiting the havens in search of risk and the possibility of higher returns … at least for a day.

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Notes From Underground: DOUBLE SECRET PROBATION RESULTING FROM THE REAL TOO BIG TO FAIL

June 16, 2011

Dean Wormer to the PIIGS: “FAT, DRUNK and STUPID IS NO WAY TO GO THROUGH LIFE, SON”

 

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Notes From Underground: Canada’s government is a fallen angel while Merkel’s CDU suffers a severe setback

March 27, 2011

The weekend news was not economic but political as governments all over the globe suffered major setbacks. The Liberals secured a “NO CONFIDENCE” vote in the Canadian Parliament and bring down the Harper Government. I know that Michael Ignatieff will claim that he is perserving the democratic basis of Canada as the ruling party was brought down on an issue of CONTEMPT. The only thing that appears contemptuous is the ego of Ignatieff. He claims that the TORIES are out of touch and out of control. The election is called for May 2 and then the electors will have the final say on who is out of touch. This will be the fourth general election in seven years and let’s hope the citizens of Canada show their anger and elect an outright majority so Canada can get on governing itself.

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Notes From Underground: Today’s financial fashion statement was RISQUE

June 15, 2010

The markets settled down and launched an assault on the long-term moving averages in an attempt to arouse the prurient interests of capital in its quest for fertile returns on capital that has been teased far too often with risk-based returns. The S&Ps and Dow joined the Nasdaq and closed above the 200-day moving average. Only time and consolidation will tell if it is to be sustained so as to entice money back in after the rape of May 6. As risk was in vogue, all the other risk elements joined the party and a good time was had by all.

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