Archive - Jul 5, 2012 - Blog entry

Beware: "Allocated" Gold May Not Really Be There

Global Crunch: Central Banks Anemic Response - A doubtful boost in investor confidence.

But please don’t tell me that you are surprised that Barclays was “manipulating” LIBOR.

Why Is the Libor Scandal So Important to You?

Central Banks came, stood and delivered… just not much more, although the (nightly) POBC cut (1 YRS by 31 to 6% and deposits by 25bp to 3%) had not really been foreseen. Second Chinese cut in as many month, the last one having been on 07 Jun (as well just ahead of the ECB meeting, then by 25 basis points to 3.25% and 6.31%). The Chinese move was good for a small uptick, rapidly squashed by the European serving.

ECB quarter cut and BoE GBP 50bn additional QE to GBP 375bn both already in the valuation ramp-out of late.

Hmmm… Non-event.

Then came the ECB press conference…

Print, print, print as they may, central bankers will make no leeway until the true problem falls sway... ©2009-2012 the Lyrical Reggie Reg...

ECB is running out of options. Germany can't afford any more bailouts.  Euro is overvalued compared to the dollar.