Archive - Sep 2011 - Blog entry

I'm going to appear on the Max Kesier Show Tuesday and will do something that very few rarely do. I will walk through a hypothetical (actually, not so) run on the bank and show in detail what the fallout will be. This post will serve as a detailed outline.

The result, for now, is that Greece’s dreaded appointment with the Ghost of Default Future has been postponed. The cycle of austerity, protests, bondholder angst, and threats of default, followed by another round of bailouts, continues.

The U.S. government simply made a bad 'speculative' investment decision on behalf of the American public, based on questionable due diligence process and circumstances, but China has nothing to do with that.

Let's take a closer look at poverty in America....

Quote of the week ...

There are just so many things wrong at the Federal Financing Bank.

Despite Margan Stanley's prediction of America becoming a Rentership Society, buying still beats renting in many cities in the U.S.

It’s U.S. politicking season, a European financial crisis blossoms, Chinese domestic turmoil escalates, Japan is lapsing into catatonia, India is returning to torpidity – not an easy time to call on common sense. But nothing is more necessary when examining the roller coaster markets and, even more, the pronunciamiento of talking heads who have burned out their synapses.

Geithner gets smacked down, and Germany might be threatened by a populist movement to exit the E.U. For the first time ever, a clear majority of Germans no longer sees any benefits to being part of the Eurozone.

COFFEE AND HOPE DONUTS STRICTLY PROHIBITED...

Right now, dumpster diving is cute and fun and an interesting way to save money, but in the future there will be millions of Americans digging around in trash cans if we don't get this economy turned around.

All you need to know.

I have questions, as usual. Any help on these would be welcome.

California, like North Dakota, is resource-rich. A state-owned bank will allow it to capitalize on its resources to full advantage by providing the credit needed to realize its potential.

2 BN USD is quite some money. In order to blow up such a sum, you need to accumulate some fairly big positions. In Equities, almost impossible, in currencies, more likely. Could THE trade have been a Long Vol CHF position? Who knows....?