Archive - Jun 2012 - Blog entry

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.

The spigot is schtuck!

"We already knew the ESFS and ESM would lend Spain money, the question is in what manner?"

DON'T Waste Any Time Reading This ... Unless You're Afraid

FTW...

In Bankia’s case all of this culminated in the bank receiving a €19 billion Euro bailout, the largest in Spain’s history. And for certain this amount of money will be increased dramatically: Bankia’s loan book is roughly €200 billion in size (1/5^th the size of Spain’s GDP) and I can assure you a major chunk of this is total and complete garbage. That’s not the problem however. The REAL problem is that Spain itself is broke and doesn’t have the money to prop this bank up…

“Humiliation,” the French media called Hollande’s defeat.

A D.C. report card.

The First Amendment Foundation has moved to intervene in the case of HSBC Bank USA v. Abby Lopez for the limited purpose of opposing closure of judicial records and proceedings.

Discussed: Gold, Silver, ZIRP, Swaps, US Dollar, Fort Knox, GLD, SLV, COMEX, and More.