Archive - Nov 2011 - Blog entry

SocGen’s news flow index suggests the VIX is headed between 40 and 50.  They arrive at this by counting “the number of newspaper articles highlighting themes related to economic strength... Historically they have proven highly sensitive to financial assets pricing, and often lead trends by a few months.”

Manipulators or bumblers?

See for yourself, I've made it easy for you...

There are now only two REAL outcomes: 1)   The ECB prints (and Germany walks) resulting in the Euro losing at the minimum 30-40% of its value, or...2)   Massive defaults and debt restructuring accompanied by systemic failure in Europe.

Capital controls are coming to Europe. What does that mean?

Time to start stocking up on those long term, OTM armageddon puts yet?

Just in time to make you feel better about holiday travels: airport security scanners that use X-rays are acknowledged to cause cancer. No problem in the US; but now they’re banned in the EU.

Police state violence ... move along, citizen ... don't look

We have been getting MAJOR warning signs of a collapse for months now. No less than the Bank of England, the IMF, and legendary asset management firm Franklin Templeton have warned that we are facing an epic, hellish crisis. We got the first taste of this in August when the S&P 500 literally wiped out a year's worth of gains in two weeks The only thing that brought us back from the brink at that time was the belief that the EU mess might be solvable and a coordinated intervention from the world Central Banks.

The more unequal countries are doing worse on all these kinds of social problems. It's an extraordinarily close correlation.

When was the last time a politician prevented a crash by causing his/her car to instantly freeze in mid-collision? Exactly! Expect the same amount of success with these multiple, financially engineered schemes to get around recognizing the only true solution - DEBT DESTRUCTION - and by the boat loads!

Not with breakfast you won't...

In October, the EFSF bailed out Proton Bank in Greece. Turns out, it had siphoned off $1 billion through criminal activity. Galling: the Bank of Greece knew of it before the bailout. And now, a bomb exploded...

This collapse will come in waves, and the CRE wave hasn't even started yet. When it does come, it will crash against the Sovereign defaults and rate storms to combine with a derivative malaise that will collapse much of the banking system. Ok, now for the bad news...

Adam Smith and the leading Austrian economists were FOR prosecution of fraud ...