Subscription Options:

Subscribe via RSS

Financial Tsunamis Imminent: EURO Is Tanking, The Wealthy Is Panicking! Banks In Europe May Now Seize Deposits To Cover Their Gambling Losses; Even With The New Deal, Cyprus Could Still Default And Leave The Euro!!! Cyprus May Need Second Bailout; Contagion Risks Are Alive And Well; Russian Nationals Stand To Lose Billions! SPAIN Impose Heavy Losses on Bank Investors

CYPRUS, TROIKA AGREE TO BAIL-IN, BANK OF CYPRUS TO SEE 40% HAIRCUTS FOR DEPOSITS OVER €100,000, DEPOSITS AT OTHER BANKS WILL BE WIPED OUT!

*Updated: In response, a bomb has just been detonated at the Limassol branch of the Bank of Cyprus

Multiple breaking reports indicate that in an early Monday meeting with Lagarde, Draghi, & Von Rompuy, Cyprus’ President Anastasiades has agreed to a Cypriot bank restructuring/ depositor haircut deal in [...]

Gold In Euros Surges 1.8% After Draghi Warns; Soros Says EU May Collapse Like USSR

by GoldCore

Today’s AM fix was USD 1,669.75, EUR 1,245.15 and GBP 1,059.55 per ounce.
Yesterday’s AM fix was USD 1,675.75, EUR 1,235.99 and GBP 1,065.86 per ounce.

Silver is trading at $31.57/oz, €23.68/oz and £20.04/oz. Platinum is trading at $1,720.75/oz, palladium at $743.00/oz and rhodium at $1,225/oz.

Cross Currency and Precious Metal Table – (Bloomberg)

While gold fell in dollar terms yesterday, it surged 1.8% in euro terms from €1,235/oz, soon after the ECB [...]

“Debt Doom Loop” in Spain; Deficit Target Impossible Once Again; Bond Rally Masks European Macro Problems

By Mike “Mish” Shedlock

Magicians at the ECB have temporarily convinced market participants that Europe is in some sort of recovery. It isn’t.

All of Europe is now in recession, including Germany as noted earlier today in German Economy Shrinks Most in Three Years; Situation Significantly Worse Than Mood.

“Debt Doom Loop in Spain”

Bloomberg reports Draghi’s Bond Rally Masks Trapping Spain Debt Doom Loop.

 The bond rally has sent Spanish borrowing That costs to 10-month lows has [...]

BlueCrest’s Platt: Draghi’s plan to purchase bonds just buying time

Michael Platt, founder of BlueCrest Capital Management, told Bloomberg Television’s Stephanie Ruhle on “Market Makers” today that “Europe has no credible plan for growth” and Draghi’s plan to buy government bonds is a revised version of ESM and a way to buy time.

Platt also said that the euro is “interesting because it reminds me of the situation in the yen. You never would have expected the yen to be such [...]

Equities Set To Open With Biggest Gap-Down In 3 Months

S&P futures are trading down around 18 points in the pre-day-session market. This would be thelargest gap-down day in three months, and only the third largest gap-down open in 2012. The market has broken to its lowest since QEtc was announced and retraced more than half of the Draghi ‘Believe’ moment spike…

The lower paneil is the distance from previous close to current open…

http://www.zerohedge.com/news/2012-10-23/equities-set-open-biggest-gap-down-3-months

FX Concepts’ Taylor: will always be a bear on euro

John Taylor, founder and CEO of the world’s largest currency hedge fund FX Concepts, spoke with Bloomberg Television’s Erik Schatzker and Stephanie Ruhle on “Market Makers” today and said that he’ll “probably always be a bear on the euro” and that “it is hard to look at the European situation and see a cloudy sky become clear.”

 

Taylor also said that “they equity market is not showing any legs…I do not [...]

Draghi’s Bazooka Fired Blanks

by Phoenix Capital Research

 

Regarding the recent Central Bank coordinated intervention, the key take-away point is that the ECB and US Federal Reserve attempted “shock and awe” tactics with their latest announcements by throwing out words such as “unlimited” and “open-ended.”

 

The implication here was that the Central Banks would do everything they could to prop up the financial markets. However, as has been the case with every Central Bank intervention, there are unintended consequences.

 

The [...]

Eurozone economic woes suggest ECB’s Draghi Plan isn’t enough to stem debt crisis

Markit’s Purchasing Managers’ Index (PMI) dropped from 46.3 to 45.9 in August, well below the 50 level that marks growth. The European Commission’s confidence index sank to 25.9, it’s lowest level for 40 months.

The data showed the further development of a “two-speed” economy in the eurozone. Markit said Germany’s private sector rose to 49.7 in September, from 47 in August – a five-month high. But in France activity sank to [...]

Must-see chart shows the market could be pricing in an impossibly large QE3

From Zero Hedge:

Last week, we discussed what the expectations were for Draghi’s OMT — approximately EUR250bn — which coincidentally provided cover for the rest of the year (conditionally) for the entire new issuance of the European Union.

Based on EURUSD’s recent exuberance — something we saw ahead of QE1 and QE2 — the market is now more than primed for some serious USD debasement. The current EURUSD of 1.2850 implies a [...]

Top Economist Hussman: History Is Sending Us A Serious Warning

‘Big Day’ For Stock Market: Dow Closes At Highest Since 2007

The Dow closed at its highest since 2007…

 

Hussman: We Are at the Mouth of a Vortex

… “There are few times in history when the S&P 500 has been within 1% or less of its upper Bollinger band (two standard deviations above the 20-period moving average) on daily, weekly, and monthly resolutions;

coupled with a Shiller P/E in excess of 18 — [...]

The Market Is EXPECTING $850 Billion NEW QE And The FED Is Officially INSANE

Last week we discussed what the expectations were for Draghi’s OMT – approximately EUR250bn – which coincidentally provided cover for the rest of the year (conditionally) for the entire new issuance of the European Union. Based on EURUSD’s recent exuberance – something we saw ahead of QE1 and QE2 – the market is now more than primed for some serious USD debasement. The current EURUSD of 1.2850 implies a Fed-to-ECB [...]

HOLY COW! Sovereign bond yields in Italy and Spain may end up moving higher again after OMT implementation!!!

There has been a lot of concern regarding the potential “unlimited” nature of the ECB’s new bond market intervention plan.

 

The worry is that the ECB could end up with a balance sheet packed with sovereign debt that no one else wants as everyone rushes to sell to the ECB once the central bank starts buying.

Barclays, like many other research shops, told clients in a note that the details of the ECB’s new bond-buying plan were [...]

ECB Sterilization Details Sketchy – Dan Norcini

One of the big selling points by Draghi and those favoring the ECB bond buying program, to assuage investor fears of its inflationary impact, was that the purchases would be offset or sterilized so as to provide for “price stability”. I suspect that this was emphasized to deal with the strong German opposition to the plan as the German experience with hyperinflation during the Weimar republic has deep roots in the German [...]

WARNING: ECB MAY NOT BE ABLE TO DO ANYTHING!!!

@ 4:20 in-a brief few minutes attempt to get below the surface of the actual words & perception of today’s Draghi statement

Resource Legend Rick Rule: Gold and silver prices to go much higher within six to 12 months

From King World News:

Today, Rick Rule spoke with King World News about spectacular home runs some investors have been hitting in the gold, silver, and crude oil markets. Rule, who is now part of Sprott Asset Management, also predicted, “… gold and silver prices will trade higher in the six to 12 month time frame.”

But first, here is what Rule had to say regarding QE and the inflation/deflation debate: “A [...]

ECB’S DRAGHI DOESN’T HAVE ‘TOO MUCH’ SUPPORT FROM MERKEL, MERKEL BACKS WEIDMANN

Zerohedge

With one day to go until the European soap opera hits its peak, and with the ECB doing all it can to spread disinformation and sow discord and disunity between Germany and everyone else on both the ECB governing council and everywhere else, Germany has decided to again make it clear just where it stands on the topic of hyperinflation and other printing matters:

FUCHS WARNS THAT ECB BOND PURCHASING COULD [...]

Moody’s Downgrades European Union To Outlook Negative

Not entirely surprising following the outlook changes for Germany, France, UK, and Holland but still an intriguing move right before Draghi’s big unveiling: Moodys maintains AAA rating but shifts to outlook negative.

“Moody’s believes that it is reasonable to assume that the EU’s creditworthiness should move in line with the creditworthiness of its strongest key member statesconsidering  the significant linkages between member states and the EU, and the likelihood that the large Aaa-rated [...]

Spain Capital Outflows Rise Nearly 40 Percent In June

(Reuters) – Spain saw close to a 40 percent rise in capital outflow in June, Bank of Spain data showed on Friday, as investor confidence in a country struggling to balance its public accounts eroded further.

Spain capital outflows rise nearly 40 percent in June
Moody’s to continue Spain review to end of Sept.
Spain loses bank support
France, Spain urge action to curb market rates
Japan to meet fiscal 2015 deficit targets, longer-term goals [...]

UBS: The three big issues that could drive markets for the rest of the year

From Zero Hedge:

The market over the summer has been quieter than we had expected – thanks to Draghi’s placating words and Bernanke’s promises. Equities rallied, Bonds and Treasurys sold off, and government spreads in Europe declined. All these markets look more constructive.

However, the event calendar in the near future is very heavy, notably the political one. This article from UBS’ global strategy group does three things. First, they provide a [...]

Three Questions for Mario “bumblebee” Draghi

by Phoenix Capital Research

 

Swing by www.gainspainscapital.com for more market commentary, investment strategies, and several FREE reports devoted to help you navigate the coming economic and capital market changes safely.

Mr Draghi… a few questions for you…

 

You say that whatever measure you take… it will be “enough” to support the Euro. Seeing as you’ve already spent over €1 trillion via your LTRO 1 and LTRO 2 schemes only to find that:

 

The uptick in EU banks [...]

Bernanke Disappointment “Could See Gold Correct”, ECB “May Need to Take Exceptional Measures” says Draghi

London Gold Market Report

from Ben Traynor

BullionVault

Wednesday 29 August 2012, 06:45 EDT

 

Bernanke Disappointment “Could See Gold Correct”, ECB “May Need to Take Exceptional Measures” says Draghi

 

WHOLESALE gold prices dipped below $1665 an ounce during Wednesday morning’s London trading, slightly below where they started the week, while stock markets also edged lower, with markets focused on upcoming meetings of central bankers in the US and Europe.

 

Silver prices fell to $30.76 an ounce – in [...]

Art Cashin – Draghi Didn’t Want To Upstage Bernanke

CNBC

History May View ECB’s Draghi As “Currency Forger of Europe”

by GoldCore Gold Bullion

 

History May View ECB’s Draghi As “Currency Forger Of Europe”

Today the London Bullion Market is closed for a national holiday.

Friday’s AM fix was USD 1,666.50, EUR 1,329.16 and GBP 1,051.88 per ounce.

Silver is trading at $30.91/oz, €24.77/oz and £19.62/oz. Platinum is trading at $1,550.00/oz, palladium at $647.90/oz and rhodium at $1,025/oz.

Gold climbed $0.80 or 0.05% in New York on Friday and closed at $1,669.80. Silver surged to [...]

Constantin Gurdgiev On “Dictator Draghi” And “The Good, The Bad, And The Ugly” Of Europe!

The Fiat Currency Bubble Seals The Euro’s Fate

Draghi sent the strongest signal to date that the ECB was willing to use its power to print money to preserve the euro.”

http://www.fgmr.com/fiat-currency-bubble-seals-euros-fate.html?print

Bill Gross – Draghi & Friends Just Want Your Money

Deutsche On Draghi: “In Short It Doesn’t Look Like We Will Get Any Explicit Action Today”

With everyone confused over why Draghi has put himself in a position from which he can’t deliver and satisfy the market one hour ahead of the ECB announcement, and everyone placing their last bets on the EUR and the SPGBs before the ECB press release hits without really having any clue what the Italian has in store that will make both the EuroStoxx and the Bundesbank happy, here are some [...]

GERMAN GOV’T REJECTS ESM BANKING LICENSE

http://www.twitter.com/zerohedge

It seems German lawmakers reject a banking license for ESM to access ECB; even if funds buy bonds, will be limited by capacity EFSF <€200bn

http://www.twitter.com/lindayueh

 

Showdown Is Imminent Between The Germans And Draghi

European Central Bank President Mario Draghi hinted to investors last week that the ECB would take action in short order to prevent Spanish and Italian borrowing costs from soaring out of control.

He promised to “do whatever it takes to save [...]

EU is investigating ECB President Draghi

Is the ECB president from large investment banks? On the initiative of an anti-lobbying group, the European Union has launched an investigation of this question.

The European Union has launched an investigation against the leader of the European Central Bank, Mario Draghi initiated. In the investigation that was initiated by the European Ombudsman, it is a question whether so-called Draghi as a member of Group of 30 (G30) in a possible conflict of interest.

“We have [...]

Moody’s: “The ECB Can Do No More Than Buy Time”

It would be odd to suggest that one of the most scathing critiques of the ECB’s attempts to talk up the market on nothing but hope, promises and expectations would come from rating agency Moody’s, yet that is precisely what has happened. With Swiss, Dutch, Finnish, and German short-dated bonds once again hitting new record low (negative) rates (and Italian 10Y is weakening), it would appear that at least some of [...]