Archive - Aug 2011 - Blog entry

Relevant news

A brief update ...

Allow me a ramble down history lane to make a point.

If you thought the first Round of the Financial Crisis was bad, wait until you see the next one. Indeed, I fully expect that what’s coming is going to be 2008 on STEROIDS. I’m talking about market crashes, civil unrest, riots, bank holidays and more.

The political and social environments in the US are growing increasingly anti-loose money from the Fed. The Fed knows this which is why we’re seeing dissent internally (see Dallas Fed President Dick Fisher’s comments from earlier today).So absent some kind of catastrophic event, QE 3 isn’t coming any time soon. Which means the floor has come out from under stocks (it just did). Which means…

Billionaires and POTUS are not welcome in this thread...

Once abundant aquifers worldwide are being rapidly depleted, and resolving this is expensive and requires growth controls and sacrifice.

The next round of German elections comes in September (the 4^th, 11^th, and 18^th). Is Merkel (and her party) really going to commit political suicide to support the Euro? After all, she would literally have to change the German constitution to participate in the creation of Eurobonds (the latest deranged ECB idea). You think the German people will go for that? 

What are the chances rate volatility, excess supply from a burst bubble and insolvent banks causes a CRE crash on both sides of the Atlantic? Yeah, if only all test questios were that easy...

The ECB's new bond purchases are not being sterilized like last year.  In fact, just the opposite.

The most liberal place in the U.S. - the San Francisco Bay Area - takes a page from Egyptian dictator Hose Me Mubarak ...

Winston Churchill defined appeasement as “feeding the dragon hoping he will eat you last.” As the eurozone banking crisis has morphed into a sovereign debt crisis, it is worth reconsidering the wisdom of appeasing the bond market in an attempt to stave off the possibility of default.

What a show Perry is putting on. Did Bernanke see this coming? Maybe

Consumers used to have discretionary income which they would use or not use depending on their mood. Beginning in 2008, consumers had less money but the price of commodities shot up and that has kept consumer spending high – but that doesn’t mean they are happy about it.

Trading the CAC40 vs witnessing The Inevitable Pan-European Real Estate Collapse