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Frontrunning: May 26
- FT editorial: how to cure the euro's ills (FT)
- How big banks window-dress their debt (WSJ)
- WSJ: Is gold the next bubble? If so, it has about $5,000 more to run before it peaks (WSJ)
- Germany prepared to go it alone to curb speculation (Bloomberg)
- Durable orders in US increased more than forecast (Bloomberg)
- The bank that won't let its customers withdraw less than GBP300 over the counter (DailyMail)
- The Greek secret bailout exit clause follow up by Alphaville (FT)
- North Korea expels South Koreans as Clinton offers olive branch (Bloomberg)
- Jim Cramer interviews Ted Kaufman, mans up, admits he was wrong on HFT, and explains why he changed his tune (MadMoney)
- Satellite-killing junk risks $250 billion market, TV World cup (Bloomberg)
- Credit as usual staying away from momentum: Euro spreads bounce, but underperform stocks (Market News)
- It's Lehman the sequel, with Merkel as Bush (London Times)
- Four ways to a better finance bill (NYT)
- Blankfein emulates Buffett as No. 48 CEO in Wall Street pay (Bloomberg)
»
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So why isn't anyone talking about the failed German debt auction?
http://www.marketwatch.com/story/german-debt-auction-uncovered-amid-low-...
Think positive. LOL
how about the spain bill auctions that were downsiozed yesterday for a nice b/c print
Why let inconvenient facts get in the way of a good zombie rally?
Germany is a government that retains an ability to repay. Who wants that sort of debt?
lol
Anyone else out there see the inverted H&S I'm seeing on the June S&P 10 minute chart?
To be concise on the WSJ call of "bubble in Au."
Dollars have no value, only that of consensus. Only in limited supply and under sound management would they continue to have value. In history, such good management has not proven to be available, quite the opposite. Gold is a limited, rare, and hard to get at resource. It also shine yellow reminding us of the Sun or our own innerlight. For both of those reasons, mostly the former, it has been used as a medium of exchange when bartered goods could not be exchanged, as in money.
At this time, paper is proving once again to be printable to infinite supply and therefore worthless in that limit in the community's consensus. It has always been seen as worthless (after it became unbacked) by those who understand it.
In the light of the true value of paper, there is no way to convert from a worthless item to one that has value, Au, bread, toilet paper. This is the basis for "gold: a bargain at any price." And in the coming "Swap til Ya' Drop" coupled with "QE ^ N" dollar value may be "seen" as finite, but that will only be (and in fact is now) an illusion.
In fact, such illuminaries as Jim Rickards, say (pseudo-quote): "Simple math division of supply of dollars into available gold give a price of $5,000 per ounce." That would be a true dollar price, not a bubble. And that would be the price with today's $ supply, not tomorrow's, not November '10's, etc. A bubble in gold? Well, crap doodles, $50k, $100k, under the present dollar supply? But the $ supply is going wonky.
In the end, it is the concept of the inverted funnel with the 10^16 supply of notional derivatives "up" top. As this unwinds as each subsequent paper item is found to be ponzi-like, then not only does revulsion of paper begin, but an increase in velocity does as well. The funnel is not exactly symmetric as in it is orders of magnitude broader at the top.
This is nothing that every ZHer doesn't know and I just wanted to clean up my brain by summarizing it. I hope there might be one or two that this helps and please tell me if there are drastic dolt level things I am saying here.
Meow!
Peter Schiff on Dylan Ratigan 5/25/2010
http://www.youtube.com/watch?v=WV1s6WC4nsc