Archive - Jun 10, 2012 - Blog entry

It would be nicer to have seen greater extremes in bearish sentiment at the bottom as this leads to stronger future returns.

Discord, the endlessly rising costs of keeping it alive, and threats of extortion.

"The importance of an artist is to be determined by the number of new signs he introduces into the language of art."--Matisse

Nobody on the Buy Side wants to sue JPM, Goldman Sachs, Morgan Stanley et al for securities fraud on the more problematic deals of the past decade.

I believe this is Germany’s final push for EU control. If this fails and Germany ceases to offer additional bailout funds in some form then the EU will collapse (as noted earlier, the ECB, IMF, and US Fed cannot prop the EU up nor will the ESM mega bailout fund work). Spain’s literally on the verge of seeing a bank holiday. Germany is the only one who might have the funds to prop it up. And Germany wants gold. In plain terms, the EU will likely not last through the summer. It’s literally GAME OVER time. Various proposals will crop up (such as Germany’s “cash for Gold” program), but no one (not even Germany) actually has the funds to support the avalanche of banking failures that is coming.

Subordination is a four letter word to bondholders.

Morgan Stanley's *hilarious* comic strip on our *hilarious* credit markets.