Archive - Feb 2012 - Blog entry

Are we really in an economic recovery or is it a figment of the Fed's quantitative easing? This will be the biggest factor in the 2012 elections.

Dinner with Banzai7 and the Limerick King... 

When Greece defaults, the fall-out will be much, much larger than people expect simply by virtue of the fact that everyone is lying about their exposure to Greece.

Now everybody's bank bashing, of course the reason to bash the banks is 4 years old, despite Bove-like analysis to the contrary. I will discuss this on CNBC for a FULL HOUR tomorrow from 12 pm to 1pm.

Most airport book stores are crammed with the very latest business books which promise to make you a better worker at whatever job you've got, guaranteeing you a much bigger salary. ("Good to Great", "Emotional Equations", "Entreleadership", "Switch", and a myriad of other worthless drivel). I was heartened to see Michael Lewis' Boomerang, which is something I knew would interest me. So that's what I bought.

Breakfast with Banzai7 and the Limerick King...

Until the Congress rectifies the current bankruptcy laws and allows trustees to claw back payments made to secured lenders and other counterparties, there is no reason for any rational personal to allow a broker dealer to hold securities in custody.

As you know, back in December the ECB conducted a 3 year LTRO operation that drew far more interest than anticipated. The operation saw banks draw a Gross (net liquidity injection was ~210 Billion Euros) ~490 Billion Euros from the ECB (and not according to plan, turned around and parked it back at the ECB instead of buying up shitty bonds).

Must ... Not ... Think ...

Make no mistake, inflation is creeping into the system in a big way. And the Fed will not raise interest rates to fight it until it’s far too late. Debt levels are simply too high for the Federal Government and US corporations, particularly the large banks which the Fed has been doing everything it can to prop up.

Northern Europe to Greece: it’s over, baby....

Since the world is on a delusional course, we must adopt a delusional standpoint towards the world.--Jean Baudrillard

Pandora's Box?

Anyone who has dared question the infinite strength of the Apple juggernaut has had their liver eaten daily by a hawk. (My own view last week that Apple would get a little above $500 then reverse didn't quite work out, although I'm willing to give myself a little wiggle room here). But it really seems to me we are just about at the peak of how high the QQQs are going to be able to go.

The complacency of the markets is amazing given the risks at hand. I don't think I'm that smart, so is it that so many others are that stupid? It can't be, can it?