Peter Costa: "The US Government Will Be Totally Bankrupt In A Year And A Half"

Tyler Durden's picture

Not much optimism from one of CNBC's favorite bulls. Yet even Costa is wrong about today's market direction as 7 shares of SPY move the market up by almost half a percent. In the meantime, the gold creep higher continues.


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Anonymous's picture

Debt repudiation and soverign default are great for the market.

The only thing better would be thermonuclear war.


bugs_'s picture

18 months?  Party ON dude!

lsbumblebee's picture

I would just like to thank the NY bullion banks and their naked shorts division (now armed only with pea-shooters) for trying to keep gold reasonably affordable for me.

MinnesotaNice's picture

Uh-oh... whoever forgot to properly medicate Peter Costa so he could exert the proper bullish exuberance must have just been involuntarily added to the unemployment rolls.

Ane let's hope gold and equities decouple when equities begin to head back down.

Anonymous's picture

well, if the us is going to be bankrupt you surely wouldn't sell and hold dollars.

anynonmous's picture

Great post over at Slope

What Isn't Working in 2009

* Elliott wave

* Fractal analysis

* Historical analogs

* Classic pattern application

* Volume analysis

* Fundamental analysis

* Sentiment as contrarian indicator

* Seasonality

* Intermarket analysis

* Sector rotation

What Is Working in 2009

* Buying stuff cuz Obama and Cramer told me to.

We have truly come full circle. 2009 is 1999, and the Greater Fool Theory reigns. This is getting really, really demoralizing.

Anonymous's picture

I've seen all of those work (elliott wave, fractal analysis notwithstanding as I am not fully familiar with them).

And if you think they aren't working, then why keep using them?

PD Quig's picture

What also isn't working in 2009:

20% of the American workforce

FullMetalJacket's picture

Why are people so surprised by the rally?

“In the economic carnage of the last 10 years, the Zimbabwe Stock Exchange has almost been this one beacon of light,” Russell Loubser, chief executive officer of South Africa’s stock exchange, said in an interview on Jan. 20.

Gordon_Gekko's picture

Tim Knight is an utter MORON.

economessed's picture

Clearly Mr. Costa is letting the camera take his hyperbole to a whole new level.  As anyone from the administration will tell you, as long as the Federal Reserve is sheltered from external inspection and audit, we can create or retain jobs, offer free health care, subsidize housing and automobilie purchases, keep the world free from bad brown people, and import enough poorly made Chinese goods to keep the economy humming along like gangbusters FOREVER.

Bankrupt government?  That's just CRAZY talk.  Perhaps Mr. Obama can convince Mr. Costa he is wrong by sending him some kind of colored magnetic ribbon to put on his car, or a flag pin to wear on his lapel.  That should do it.

Slewburger's picture

"Perhaps Mr. Obama can convince Mr. Costa he is wrong by sending him some kind of colored magnetic ribbon to put on his car, or a flag pin to wear on his lapel."

Hecho en China of course.

deadhead's picture

ummm, isn't the usa bankrupt now?

Burnbright's picture

Yes I suppose since QE is essentially defaulting.

Anonymous's picture

B/R means that an organization can still function, witness GM, Citi, et al.

The US government on the other hand is a flopping, beached whale. It passed bankruptcy, every Chapter and verse, decades ago.

There really is no business or legalese definition for an organization that can xerox money at will to pay its bills.

Scarecrow's picture

Actually there, and it's called a FRAUD.

And that is what our government is committing on the savers of this nation for the benefit of the borrowers.


BorisTheBlade's picture

Insolvent, but not yet bankrupt. Just like all the major banks.

Anonymous's picture

yes since 1933 and thanks to dear old franklin or whatever his real name was....

Gordon_Gekko's picture

That's exactly what I was gonna say deadhead. Great minds etc., you know.

Careless Whisper's picture

bankrupt? that's impossible.

sheila bair: "we can not run out of money"

hp12c's picture

Naa, they are writing bum checks that we taxpayers will have to make good on down the road with a reduced standard of living...

snorkeler's picture

Does a $65 trillion negative net worth still count as bankrupt now????????????

Anonymous's picture

why are the rating agencies not talking about reducing the US rating?

SilverIsKing's picture

I'm deciding on which country to move to when the US becomes uninhabitable.

I've narrowed it down to Australia, Costa Rica, or Singapore.  Any thoughts?

Edna R. Rider's picture

Australia.  More resources, nice people.

Divided States of America's picture

Australia is remote enough not to be in any danger of invasion though China is becoming a power that cannot be trusted. I would have said Canada also because their reserves are even more abundant (including fresh water reserves) but their excuse of an army is as useless as a couple of boy scouts with slingshots. They stand no chance when the USoA decides they need more resources and basically walks right over the border.

Anonymous's picture

Canada has the greatest defense system on earth;
tolerance of cold weather.

You rednecks will freeze your nards off before you
reach Barrie

Anonymous's picture

No problem. We have the greatest offense system to counter that -- Global warming.

Anonymous's picture

+10 And a large swath of Canucks know how to "hunt."-

Shamwow's picture

+1 eh.  Spoken like a true Hoser!


I would have guessed they would have drowned in the gulf as they looked for our country down there first!

milbank's picture

It will be worth it if it means bringing Freedom and Democracy to Canukistan. 

You know the Canukistanis envy us for it. 

Especially those near the Athabasca Tar Sands of Northern Alberta. 

Our young boys and girls in uniform will be honored to bear any burden and meet any hardship to bring that noble cause to it's rightful conclusion as ordained by God. 

Anonymous's picture

I grew up in the Upper Peninsula of Michigan.
Some 60% of Canadians live south of that.

Anonymous's picture

Now I don't care who you are. That there's funny.

Fish Gone Bad's picture

Of the worlds 10 deadliest snakes, Australia has 12 of them.

Fish Gone Bad's picture

Of the worlds 10 deadliest spiders, Australia has 15 of them.

Anonymous's picture

Dewd, who taught you math?

Hephasteus's picture

His coach kept making him give 110 percent. It had consequences and repercussions.

Winisk's picture

There's a good reason we passive people are living in the cold, mosquito infested boreal muskeg. No one else wanted it. It really is that bad. And our fresh water is polluted with beaver poop. Seriously...don't even bother coming up here...please don't.

tallystick's picture

You may want to look again at just how far the Aussie police state has progressed recently.  It's somewhere between the US and UK.

economessed's picture

You  are overlooking the obvious:  Russia.  In addition to huge domestic natural resources, their military/police can enforce social order.  Plus, you can always escape to a happy place through ubiquitous consumption of inexpensive, high quality vodka.

Señor Tranche's picture

I like this choice too.  I think Russia will be a major power in 10-20y

BorisTheBlade's picture

lol, several problems though: it's a nightmare to get a visa, it is cold, you are almost obliged to know the language.

Internet Tough Guy's picture

Not to mention Russia is a mafia state masquerading as an oligarchy. You have no rights in Russia.

rr_'s picture

They need to catapault their propaganda!

Mad Max's picture

Russia is going downhill faster than the US.  They just are more focused on natural resources.  I expect wholesale Chinese immigration to Russia in a decade or two.