• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Janet Tavakoli: "Greater Global Risk Now Than At Time Of LTCM"

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Tue, 06/07/2011 - 12:38 | 1347230 So Close
So Close's picture

If Gold and Silver are money and Fiat is a house of cards than it is just a matter of time.   Probably worth remembering that being early is the same as being wrong.

Tue, 06/07/2011 - 13:26 | 1347355 reload
reload's picture

I didnt junk you, but; its not the same - early is early, however early with leverage can be just as bad as being wrong. I think the real point here is that the `structured products` are not very liquid at the best of times. When a fund is feeling clever and invincible they are tempting, `look at me - I have bought a bespoke instrument which will allow me to profit when things pan out as I predict` - but when TSHTF no chance to get out at a `reasonable` price in a fast market. The structured product groups of the TBTF -bank/brokers love these instruments, they sell them with large inbuilt margins and construct esoteric hedges to lock in & `book` their profits. The purchaser of the product is their prisoner if he needs to unwind in a hurry or a fast market. We have seen from the Goldman MBS debacle that the TBTF have no qualms about inflicting `maximum pain` on their clients, margin gathering and stop loss hunting has not gone out of fashion. Great article, JT is a smart cookie.

Tue, 06/07/2011 - 21:19 | 1349239 Harlequin001
Harlequin001's picture

If all the world is as safe financially as our leaders would have us believe then all the world's governments need do is to buy protection for their own debt by multiples of 2 through CDS and default, just like Goldman did when it shorted its stock of CDO's. We could all then be twice as wealthy having paid off our debts in default and have a similar sum left over for the next twenty years of largess.

If all the world was as safe financially as our leaders would have us believe then there is no need to bail out any bank, or any company for that matter since all can now buy CDS against their own debt. Do we now conclude that since none of the worlds central banks have yet done this the entire 600 trillion dollar derivatives market is nothing but a well known 'shining lie' that no one can now deal with since the problem is now far too great.

Collapse is the only possible outcome

Tue, 06/07/2011 - 12:38 | 1347232 HelluvaEngineer
HelluvaEngineer's picture

No worries.  Tim Geithner's got your back!

Tue, 06/07/2011 - 14:14 | 1347548 Crisismode
Crisismode's picture

Is that why he stuck a knife in it?


This summer is going to make for some very interesting fireworks, and I'm not referring to July 4.

Tue, 06/07/2011 - 12:40 | 1347233 unununium
unununium's picture

You mean a trigger event like oh, I don't know, the default of a sovereign European state?

Tue, 06/07/2011 - 12:55 | 1347278 redpill
redpill's picture

It's going to be fun to watch the ECB and IMF try to stop it.  Like watching a little kid who thinks if they flap their arms hard enough they'll be able to fly.

Tue, 06/07/2011 - 13:48 | 1347466 Ahmeexnal
Ahmeexnal's picture

Or a war involving Syria and it's neighbor?

Syrian protesters along the Israeli border were paid thousands of dollars by President Bashar Assad's regime to take part in Sunday's demonstrations where more than 20 people were killed, ynetnews.com reports.

The Reform Party of Syria said intelligence sources told them that the Syrian protesters were poverty-stricken farmers.

They were paid $1,000 for showing up to the protests and their families would be paid $10,000 if they died, according to ynetnews.com.


Sad Ass ASSad knows his time is up. His only hope is to engage in full scale war with Israel in order to preserve his throne. Syrian soldiers have now joined protesters and are shooting down the elite Syrian forces still loyal to ASSad:


BEIRUT -- Mutinous Syrian soldiers joined forces with protesters after days of crackdowns in a tense northern region, apparently killing dozens of officers and security guards, residents and activists said Tuesday.

Tue, 06/07/2011 - 12:55 | 1347282 espirit
espirit's picture

Ever heard of kicking the can down the road?

Refinance the interest payment, problem solved.

Tue, 06/07/2011 - 12:58 | 1347289 MonsterZero
MonsterZero's picture

Greece gets Interest only with 50 year ARM.

Tue, 06/07/2011 - 13:43 | 1347468 Gubbmint Cheese
Gubbmint Cheese's picture

nope - terms are too onerous.

Try a "pick-a-pay" with a minimum payment option. All accrued interest just gets added to the balance.


Tue, 06/07/2011 - 12:55 | 1347291 SheepDog-One
SheepDog-One's picture

Or, dirty bombs in US cities?

Tue, 06/07/2011 - 14:08 | 1347538 Enceladus
Enceladus's picture


AKA "The Fukushima Effect"

or non-linear dynamics or 1+1=2+1=18,

The financial engineers working tirelessly to keep the back up generators working in the basement of the Fed and Treasury and on Wall Street will never see the 30 meter tsunami about to wash over the plant.

Tue, 06/07/2011 - 12:45 | 1347244 JLee2027
JLee2027's picture

We appear to be on the verge of the great collapse.

Tue, 06/07/2011 - 12:55 | 1347279 Cognitive Dissonance
Cognitive Dissonance's picture


I thought we already did that in 2008? Dammit.......did I miss a memo?

Tue, 06/07/2011 - 12:59 | 1347292 redpill
redpill's picture

 No that was just a transitory event, obviously caused by a lack of liquidity.  Thankfully we've been pulled into roaring recovery by HFT robots that generously provide the liquidity that our economy needs.

Tue, 06/07/2011 - 13:09 | 1347340 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

JLee, and those of you who have commented positively re my replies here at might enjoy my blog, where I write about gold & silver, guns & ammo, TEOTWAWKI, Peru, etc. please send me an email if you would like the link to my blog.  Name above at gmail.  Please assure me that you will be nice.

Tue, 06/07/2011 - 13:14 | 1347359 Cognitive Dissonance
Cognitive Dissonance's picture

Please don't invite Tyler. We don't wish to distract him from the insanity at hand. He's already busier than a one armed Silver and Gold buyer.

Tue, 06/07/2011 - 13:54 | 1347493 augie
augie's picture

No cock pics ?


Tue, 06/07/2011 - 12:54 | 1347275 nantucket
nantucket's picture

man, the Mayans may turn out to be right after all.  I'm going to live it up like Dec 21, 2012 is the collapse of the whole enchilada.  After that,....who knows.

Tue, 06/07/2011 - 12:52 | 1347283 redpill
redpill's picture

mmm enchiladas.  Don't have to worry about my gut if the world is ending, I suppose.  Ole!


Tue, 06/07/2011 - 13:02 | 1347302 Ahmeexnal
Ahmeexnal's picture

The ancient Maya Rabbis knew what the modern scientists still deny.

Tue, 06/07/2011 - 13:26 | 1347402 sdmjake
sdmjake's picture

Jai alai?

Tue, 06/07/2011 - 12:56 | 1347297 espirit
espirit's picture

Nah, the date was last changed to Oct 21 of this year from May.  Besides, we don't know if the Mayans started their calendar with year zero or one, so better be prepped to leave this year between Oct and Dec.

I'll hold your PM's for you.

Tue, 06/07/2011 - 13:03 | 1347322 FreeNewEnergy
FreeNewEnergy's picture

Dec 21, 2012

Something wrong here: 12/21/2012. Seems like, for more symmetry, there should be no zero, thus, the magic date would be 12/21/2112.

Delving further, we find, through the arcane Pythagorean system known as numerology (and before junking me, Pythagorus was indeed the founder. Look it up) we get a result, in the first instance of 11, a prime number, and useful if one wants to predict the end of the world, though 1 or 9 could be equally insightful. Also, remember that 1+1=2, so the 11 reduces to 2, rendering it useless as a predictive tool for end times.

100 years into the future, 12/21/2112 is reduced to 12, or 3, again, not much help. If you really want to get to the end of the world, or end of time. 1 or 9 is preferred.

6/7/2012 is today, which is 18, or 1+8=9. There. The world ends today. Crap, and I just needlessly shaved.

See you all on the other side. Bring your own.

Tue, 06/07/2011 - 13:29 | 1347404 Clampit
Clampit's picture

The prophet Neil Peart would seem to agree. ;-)

You also assume it's the 10 digit humans who decide what base. After considerable reflection on the matter with my 6 year old son, I'm beginning to think the three toed sloth is woefully overlooked. That and the dolphins, who have the luxury of using the same base as my laptop and coincidentally give the same answer of 101010.

Tue, 06/07/2011 - 13:23 | 1347381 Cognitive Dissonance
Cognitive Dissonance's picture

Sorry but the Mayans didn't predict the end of the world, just the end of one age and the beginning of another.

MSM has been beating the end-of-the-world horse just like it does every other fear mongering horse.

Tue, 06/07/2011 - 13:22 | 1347392 FreeNewEnergy
FreeNewEnergy's picture

Ah, thanks for clearing that up. And that's obviously bullish for stocks, right?

Tue, 06/07/2011 - 13:29 | 1347415 Cognitive Dissonance
Cognitive Dissonance's picture

Yes. And please use maximum leverage as well. But only use funds you have borrowed to begin with, then deposit them in a margin account and go to town.

Keep me updated. I care.

Tue, 06/07/2011 - 14:31 | 1347471 cougar_w
cougar_w's picture

Keep me updated. I care.

We can all feel the love. :)

Oh there is a new story up if you want some more warm fuzzies:


Fortran is being bad again. Or is it good? She's not sure herself, but I'm leaning toward the former myself  in the off chance she'll then submit to a firm spanking.

Tue, 06/07/2011 - 13:23 | 1347382 FreeNewEnergy
FreeNewEnergy's picture

Hey, you're right. 12/21/2011 reduces to 10, which is 1, which would correlate to TEOTWAWKI. (see my post below, or above, depending on whether you're standing on head or tipped your i-pad over the wrong way).

Tue, 06/07/2011 - 12:56 | 1347287 Dixie Rect
Dixie Rect's picture

I hear helicopters.

Tue, 06/07/2011 - 12:57 | 1347288 FreeNewEnergy
FreeNewEnergy's picture

I'm so confused. Should I buy the dips, sell the chips, or flip the condo?

Tue, 06/07/2011 - 12:56 | 1347294 SheepDog-One
SheepDog-One's picture

Dip the guacamole, sip the Corona.

Tue, 06/07/2011 - 13:00 | 1347299 redpill
redpill's picture

Screw the dip, buy fresh avocados and make guacamole.  Eat the chips with it.  And then pay off the condo and live there while the world implodes.

Tue, 06/07/2011 - 13:01 | 1347311 Ahmeexnal
Ahmeexnal's picture

What's the matter with you? No Adonis DNA? No tiger blood in your veins? Time for a Charly Sheen inspired weekend -midweek.

Tue, 06/07/2011 - 13:02 | 1347318 redpill
redpill's picture

Tried to come up with a Tigers Blood cocktail involving Bloody Mary mix and Jaeger.  Didn't work out well.

Tue, 06/07/2011 - 13:02 | 1347317 Commander Cody
Commander Cody's picture

One more enhancement: Stop paying on the condo.

Tue, 06/07/2011 - 13:06 | 1347332 FreeNewEnergy
FreeNewEnergy's picture

How about I flip the dip, chip the condo and spunk a monkey?

Tue, 06/07/2011 - 13:05 | 1347305 SheepDog-One
SheepDog-One's picture

'Hedge funds'...another part of the problem. Everyone in on record margin leveraged to the gills livin it up, then when it implodes they run around crying about how it all could have gone so wrong and get bailed out by the taxpayers with a gun to their head.

Tue, 06/07/2011 - 13:11 | 1347347 qussl3
qussl3's picture

Gun is empty, time to call the bluff.

Iceland is proof.

Tue, 06/07/2011 - 13:01 | 1347312 DogSlime
DogSlime's picture

As long as we don't have to bail them out, I say let them leverage all they want...

Just so long as this time when they fail, they fail.

Tue, 06/07/2011 - 13:05 | 1347315 Franken_Stein
Franken_Stein's picture


A top Bilderberg member has revealed that globalists are panic-stricken about a potential eurozone crisis caused by a Greek debt default that could precipitate the collapse of the Euro and also derail the wider agenda for multi-regional currency unions and eventually a global currency system.

Appearing on the Alex Jones Show yesterday, veteran Bilderberg sleuth Jim Tucker said that the Euro will again be the subject of crisis talks at this years globalist confab in San Moritz, Switzerland, with power brokers desperate to rescue the single currency from a collapse that numerous financial analysts see on the horizon.


Tue, 06/07/2011 - 13:09 | 1347341 DogSlime
DogSlime's picture

They'll just offload whoever they deem to be "toxic" members of the Eurozone, won't they?

Tue, 06/07/2011 - 13:20 | 1347367 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Death to the New World Order!

Tuco Benedicto Pacifico Juan Maria Ramirez

Tue, 06/07/2011 - 13:10 | 1347345 RobotTrader
RobotTrader's picture

No doubt a "surprise" announcement is due any day now from the "O-Team".

Something that will "shock and awe" the stock market.

The question is when is the ideal time to make such announcement to inflict the maximum amount of pain on the shorts?

Tue, 06/07/2011 - 13:12 | 1347352 qussl3
qussl3's picture

Eventually it will suit TPTB to shear the longs, wonder when that is.

Tue, 06/07/2011 - 13:17 | 1347357 redpill
redpill's picture

I thought you were going to go short on the S&P?  What happened?

Tue, 06/07/2011 - 13:18 | 1347361 FreeNewEnergy
FreeNewEnergy's picture

STFU, robo. You're a clown. Please go away.

Tue, 06/07/2011 - 13:36 | 1347431 espirit
espirit's picture

Free starch?

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