Archive - Jun 2012 - Blog entry

False solutions in sight

Poetic justice...

So we now know that’s Spain’s political leaders will lie right up until the point of systemic collapse. We also know that both Spanish banks and politicians are highly incentivized to not quantify the true extent of the risks inherent in the Spanish banking system (remember, Bankia was discussing paying its dividend in April… just one month before it requested a bailout and revised its 2011 €309 million profit to a €3 billion loss). Thus, I would change the common phrase applied to the EU’s political/ financial policies from “extend and pretend” to “lie until you are about to die.”

The U.S. and Russia Are In a New Cold War ... And China May Join In

Halfway into the year, my warnings on the FIRE sector are starting to come into there own. The first look, banks and bank stock analysts!

Gold rose $11.40 or 0.71% yesterday in New York and closed at $1,611.60/oz.  Gold started out trading sideways in Asia and then edged up in early European trading.  

All you can read.

Testimony of Jamie Dimon: "Listen up you morons..."

The Euro Takes the Road Well Traveled: Paths emerge. The EU has options. Yet they continually choose the well-beaten road of fiscal suicide.

News & headlines from the day

The Spanish Lesson

Spain’s Bailout is one big lie. I know, I know... Spain is “saved” thanks to a €100 billion bailout. But no one is asking just where this money will come from?

The upcoming bailout in Cyprus has warts, and spies.

The First BRIC to be Downgraded to Junk?

Jose Manuel Barroso, President of the European Commission, thinks Europe needs a unified banking system.

But how can financing be a solution for a Zone with a fatal fundamental flaw? Banking cannot save the euro-Zone. This proposal is only the distraction du jour.

Europe continues be unable and unwilling to look at the core problem in the Zone which has morphed into huge competitiveness differences that are creating havoc.

The easiest fix for this is a break up. For the Zone to survive this will require a lot of cooperation and frankly it does not seem close to doing it.