How can it be a double dip if the first recession never ended? The Fed spent $1 for every 80 cents of "supposed recovery", all of which lasts only as long as the Fed keeps spending those $1s. Patently unsustainable, as we are now seeing...
What makes this so interesting is that this bank is sitting under everybody's nose yet no one suspects it. KaBoom!!! Nuclear chain reaction thoughout Europe based on panic, greed, avarice and fear? Oh well, back to the trade at hand...
500+% in less than a week! Not bad. Expect to give some back as the kick the can down the road parade begins: QE3.56, concerted central bank buying, bannig shorts, outlawing puts, whatever. I fully expect a short term rally then realisty will rear its ugly head once again.
More evidence of European bank runs as both banks AND sovereign domicile states start to pull liquidity at the same time that said banks are trying to pull liqiodity from their customers. How do you think this will end?
260% profits in 48 hours? Global markets in full meltdown mode? Bank runs imminent? Is this an all out collapse or will the global central financial planning cartel reign it in via the bear market rally from hell. Well, here's a few steps to take either way...
The Fearful Flight To Quality Trade stuffs global capital into US treasuries once again, negative yields forthcoming! As Bernanke, et. al. gambled, Europe collapses first - suppressing our gambling costs to record levels. Hey, it was either Europe or China, and our bet was Europe too! Kudos Mr. Bernanke for kicking the can down the road once again.
Game over, everything sold off, gold soaring... system is imploding... USSR 1989, EURO 2012, and i think we might well add US & Japan to the list as well. Volatility more valuable then nearly everything, maybe even gold, if you bought vol in time, that is...
Unsurprisingly CAC had a plunge yesterday, one of the worst performers in all of the European markets - exactly as we have warned... Leading the way down were the institutions that we explicitly warned about... When one reads about DB drastically cutting its BTP exposure and French banks having done [relatively] NOTHING its quite scary... Ready! Set! Bank Run!
NPAs and devalued sovereign debt infect bank balance sheets, which are bailed out by sovereigns who assume too much debt for the bailouts, thus dropping the value of their bonds, further stressing bank balance sheets, thereby increasing the need for bailouts. Wash-Rinse-Repeat. Hey, he who panics first, panics best!
The Monthly chart, with only one more trading day left tomorrow [Friday] shows we are breaking the monthly trendline at 3910 THIS month (July), even though on a weekly basis, there were a few weeks this month where it was below already.
The global financial planners of the world look skilled to the common man as they juggle the manipulation of several markets with dexterity. This begs the question - "What Happens When That Juggler Gets Clumsy?" Herer's to you Fed and ECB, as TBTF banks are transformed into Too Big To Save. Reference Deutsche Bank's profit warning spoken in Sanskrit, and our apt translation.
