The mooted savings levy in Cyprus is a form of wealth confiscation on behalf of the EU which is making depositors throughout the Union nervous. There has been no dramatic increase in the demand for gold in recent days. However, this could be a ‘tipping point’ moment when savers realise that they are unsecured creditors of banks and their savings are not sacrosanct.
Nat Gas kissed $4 just after 10:00 EST and then subsequently collapsed to $3.891 before rebounding all the way back. Coupled with Fannie Mae, we're in an Efficient Market! This time, the computers were a full 7 seconds ahead of the release, not the 400 ms we've been seeing.
The likely outcome of the Cyprus crisis now looks to be even worse for the average Cypriot that appeared likely over the weekend. Those who think countries would be better off outside EMU rather than in, just might be able to test their hypothesis. We suspect they will be sadly surprised to learn that the only thing worse of getting in is getting out.
Many commentators have spent a great deal of ink proclaiming China to be the next great economic power. While it is true China has seen dramatic improvements in its economy over the last 30 years, my view has been and remains that most of the “growth” of the China “miracle” is just a debt-fueled bubble built upon a loose foundation of Government corruption and fraud.