Archive - Jun 29, 2011 - Blog entry

Bernake is slowly losing control of the system. In 2007, he was putting $30 billion into the system here and there. In 2008-2010, he upped the ante to $50 billion PER MONTH. QE 2 pushed the amount up to $100 Billion per month. And here he is, hinting at giving ANOTHER $300 BILLION when QE 2 ends!?!?

With the Greek vote now done, the oil reserves opened up and the equities market going higher during the last days, all is great. Let’s not forget about the US Debt problems though. August 4th coming up soon, and Obama needs to extend that parabolic chart….
From www.thetrader.se

"What we ask is that you spread the Truth and take ACTION! WE ARE ANONYMOUS. WE DO NOT FORGIVE. WE DO NOT FORGET.EXPECT US."

Greece’s problems are now “solved”, at least for some weeks, until the next debt tranches are to be repaid. The biggest pink Elephant in the Mediterranean, Spain, is passing by very calmly, with the tourists enjoying the cold cerveza on the beach. The summer months are the tourist months, but after this summer, when people decide not to buy all those cheap houses, the Pain will come back. Zapatero won’t run for another term next year, and the blame game has already started. With Spain facing the huge unemployment, the more than a million unsold homes, and local regions carrying “hidden debt”, we expect the autumn to be rather Spain oriented. From www.thetrader.se.

How many times can the market rally on the same news - news that we know is nothing but BS number shuffling out of Europe that pushes the Greek crisis back for a year or two and nothing more?

This ain't a house, it's a sieve...

Then things fell apart. The government was peeling off its stimulus programs, gas and food prices had skyrocketed, and suddenly on May 17 tax collections fell versus the same period last year.

Wherever you put your money, it’s important to stick to your investment discipline.

OOPs!

We have heard it all before. Self regulation, too big to fail, must be saved, bail out, tax payer paying the bill etc. Hoenig, not overly positive on the too big to fail institution, gives his view on the subject.

The biggest Elephant, still around, Spain’s troubled Cajas, are reportedly hiding large amounts of Debt. We have written extensively on the Spanish Economy and the problems it faces. Spain next up? Watch those CDS prices. Translated by Google, El Confidencial.

The Greek vote went great. Now we just have to fix the Economy. Remember, the ship is still sinking. After Greece short term liquidity has been “fixed”, we expect the problems in Spain to regain attention. Kathimerini on the Vote;

In 2009 I warned that putback risk will be the harbinger of big bank downfall. Not much was made of it then, but to quote WSJ now, $8.5 billion in putbacks for BofA could "embolden mutual-fund managers, insurance companies and investment partnerships to seek similar settlements with other major U.S. banks by arguing that billions of dollars in loans they bought before the housing collapse didn't meet sellers' promises or were improperly managed."

The Greeks invented Democracy, but it seems they also gave the World Debtocracy. Don’t forget to check the subtitles box before watching the video.

“Don’t fight the doctor……”

China is struggling with inflation, speculation, an increasingly polarized society and even some social unrest. Shilling continues his 5 part China article today on how the country is strolling along the path leading to Hard Landing.