Archive - Feb 9, 2015 - Blog entry

The future of Europe now depends on something apparently impossible: Greece and Germany must strike a deal.

When the shill hits the fan...

Today the financial system is even more leveraged than in 2007… backstopped by even less high quality collateral. And this time around, most industrialized sovereign nations themselves are bankrupt, meaning that when the bond bubble pops, the selling panic and liquidations will be even more extreme.

Perhaps, as in 2008, commodities are a very large canary in a very crowded coalmine. I am highly confident Mr. Stockman's prediction about North Dakota is going to come all too true.

Three consecutive days of oil prices rising and suddenly all is well again. This is the extremely short sightedness that the markets possess. The bottom callers have come out in droves, screaming that prices will only move higher from here, but will they?

There is a possibility that oil prices may of hit a near term low, and will likely stabilize in the $40 to $45 per barrel range. However, the reasons for the recent rise in oil prices that market pundits have been expressing are simply not true.

The same as your old new enemy...

The world economy stands on the brink of a second credit crisis as the vital transmission systems for lending between banks begin to seize up and the debt markets fall over. The latest round of quantitative easing from the European Central Bank will buy some time but it looks like too little too late.