Archive - Oct 2012 - Blog entry

In the age of Newspeak.

So Spain will suffer a collapse, most likely of its banking system resulting in a sovereign default (barring a bailout). When this happens, some €1 trillion+ worth of collateral (still rated AAA by EU banks) will be sucked out of the system.

From 1987: How much time do I have to liquidate?    Answer:  We need you to do this by Monday night.

Situation “too uncertain,” but for 2013, “we’re pessimistic.”

What kind of batter crowds the plate after a pitcher has aimed a fastball at his head? “Batters” have been doing it routinely on Wall Street lately — most recently yesterday, when they held the broad averages buoyant while Google shares were getting pasted for 80 points. During this single-stock onslaught, the Dow Industrials were never down more than 50 points and closed off only slightly with GOOG still $53 in the hole. This wasn’t the first time bulls have leaned into the plate while “dusters” whizzed past their ears.

Congratulations Mario Draghi, you promised unlimited bond buying and you bought less than one month’s worth of gains for Spain. If you want proof positive that Central Banks are losing their grip on things, the above chart is it. The moment we take out that trendline again, it’s GAME OVER (what more can the ECB promise?)

Back to support levels. What's next?

Ladies and Gentlemen, hedgefund managers, boys and girls...here comes Chia...

Caution is the word of the day.

BP's New Excuse Doesn't Hold Water

... and here are the facts!

Spacy week, though… Song pick of yesterday’s said it all. Somehow, things have spun out of control and the rocket started stalling and then drifting into the void…

Poor Major Tom left the capsule too early.

Regional elections in Spain over the weekend. As Rajoy denies there’s any pressure to seek help, BONOs slide. Damned if you don’t; damned if you do…

Interesting to see Core EGBs’ only muted reaction to the fading Risk sentiment, though (Bunds and UST still +15 on the week).

Friday Edition...

Violence, oil theft, pipeline vandalism, kidnappings, pollution, piracy, sabotage, decrepit infrastructure, and electricity for 50% of the people

Think of a steady stream of rusty old ships headed for the scrap-yards of India. Each one means China gets stronger.