Archive - Sep 16, 2012 - Blog entry

As I’ve outlined in earlier articles, Spain will be the straw that breaks the EU’s back. The country’s private Debt to GDP is above 300%. Spanish banks are loaded with toxic debts courtesy of a housing bubble that makes the US’s look like a small bump in comparison. And the Spanish government is bankrupt as well.

The Fed had been using “QE hype” to rally the markets. Every time we were on the verge of a collapse another QE announcement would be made bringing us a few feet back from the fiscal cliff. But that tactic wont work anymore…

Here's proof, pulled off of the St. Loius Fed's site, and espoused in front of the actual entrance to the NY Fed. Methinks I should start my own Financial News Station, called "The Truth"!

Well, my fellow Slope-a Dopes, your favorite intrepid seafaring Frenchman got blown out of the water by Benjamin Moby-Dick Bernanke once again.  I have to hand it to captain grey beard, for a guy with a curiously quivering lower lip, who seems so utterly unsure of himself every time he opens his moronic mouth, he sure does have some pair of ballistic brass balls.  Not only did he delivered on his QE3 promise, but he actually turbo charged it into a terrifying trifecta!  Boatswain BDI was left for dead, desperately drowning in a sea of red DOOMs (Deep Options Out of the Money).  So now that Moby Dick has breached and surged the equity waves to new highs, where do we sail from here?  

Wait a minute, investors can't expect more QE because we already have too much of it already.

And BiBi displays the evidence...

Today as was the case a month ago, everything ultimately hinges on Germany. Political intrigues aside, Germany is just about out of money. And Merkel has to decide… save Germany or save the EU. Only one of these options is even possible at this point (save Germany) as the EU is beyond saving.

Friend or foe?