Archive - Jul 19, 2011 - Blog entry

To say that systemic risk is a MAJOR problem for the EU would be the understatement of the year. For instance, if Portugal defaults, Spain’s banks will get taken to the cleaners. This in turn could trigger a HUGE systemic collapse as exposure to Spanish debt is equal to 4% or more of GDP for Switzerland, France, Germany, the UK, and the Netherlands.

Any of this money yours?

So you see, Florida Bar, you are wrong, wrong, wrong when you say I have to bestir myself and do a darn thing about the fraud I helped my clients commit on the court. Because, I’ll tell you one thing, if one of those nice people’s affidavits was phony, they were all phony! Geez, give me a break. Seriously, whose side are you on???

Equities up, gold down. Are we up for a false break out on the upside? by www.thetrader.se

OTM Google calls purchased a couple of weeks before earnings returned roughly 10-20x the original investment. How did practically the entire Sell Side of Wall Street miss this opportunity while we screamed on the undervaluation of Google since last quarter? Well, you just can't plan or measure the domination of mobile computing 3 months at a time (and of course, front running clients make for more profitable trades)!

This lack of accountability leads to increasing bad behavior.

Is this like South Africa at the end of the Apartheid era, where those in power have to hand over some of the reins to the majority to prevent violence?

If XLF does break down, who is going to save the day?

Most of the tainted mortgage documents in question last fall were related to homes in foreclosure. But much of the suspect paperwork that has been filed since then is for refinancing or for new purchases by people who are in good standing in the eyes of the bank.

Greece is NOT the big problem for the EU. However, worldwide exposure to Greek debt is in the ballpark of $277 billion. So a default there would result in significant market dislocations. Now consider the exposure to a BIG Problem such as Spanish debt. In this situation, Great Britain is on the hook for $51 billion. The US is on the hook for $187 billion. France is on the hook for $224 billion. And Germany is on the hook for a whopping $244 billion.

Enough with the Keynesian aggregates, already.

Hard to make this stuff up.

There is one hedge fund manager who I'll never forget, Ray Dalio of Bridgewater...

May the farce be with you...

We finally agree Greece will default. Why can't we all agree on the turmoil likely as a result? European CRE will get C-R-U-S-H-E-D in a volatile rate storm.