Archive - Apr 2012 - Blog entry

Case in point, if the Spanish auction went so well, why are Spanish Credit Default Swaps widening? Ditto for Spanish yields (the ten year is back closing in on 6%)? However, ultimately this auction means next to nothing. Spain is an absolute disaster on a level that few if any analysts can even grasp.

"You have your fear which might become reality; and you have Godzilla which IS reality..."

When liquitidy burns, or too much of a good thing is really bad...

This strange event happened this past Tuesday in the COMEX New York markets but I didn't have time to post it until now. Not much to add here in the commentary that the pictures don't say themselves, except that market prices of two different assets do not plunge in tandem by 1.2% within a matter of half-an-hour or so at precisely the same time and then gain everything back in the next two hours if their prices are set by free and fair markets.

I'm still quite bearish on banks/sovereigns, but as history dictates the greatest wealth has been created during the greatest dislocations, not during the greatest bullmarkets as popular opinion would lead many to believe. Think of the robber barons after the Great Depression...

Sometimes I ask myself why I chose to do this. I'm sitting here thinking about all the things I have to do and if I start writing, will I actually write anything that's going to make an inkling of difference. Let the politicians, Central Bank Governors and rating agencies fall on their own swords. The world will sort itself out without any feeble attempt you come up with under the circumstances to change it, undertheradar. You're getting yourself worked up for nothing, and that's going to cost you mistakes in the rest of your messed up life.

Perfidy—as Target 2 balances balloon and risks spiral out of control

Post-illusion choices. 

Contrary to BP's Happy Talk, the Gulf Ecosystem Is Being Decimated ...

Would taking dead deer out of my water be too much to ask?

Three rings...count 'em. Or, are those jail cells? New emails show MF's General Counsel Ferber desperate to get Corzine in front of Gensler and keep the zombie Corzine Trade alive.

DO IT! DO IT!

The bailout gravy train is slowing and possibly even stopping right at the time when Spain (a REAL problem) is going to start looking for a bailout. So what do you think happens when the ECB chooses to print more and Germany threatens to pull out the Euro… OR the ECB tells Spain it can’t provide any additional funds?

As a Korean-American, many people expected me support Jim Yong Kim's appointment to the World Bank. Here is why I do not.

Simply must see volatility video.