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by Phoenix Capital Research
Few analysts know or admit it, but the only thing that held Europe (and ultimately the financial system) together since May 2012 was the promise of unlimited bond purchases from the ECB.
The reason this worked was because traders poured into European bonds in an effort to front run the coming ECB purchases (much as they have done with Treasuries during every new QE plan in the US).
This in [...] From The Mercenary Trader: “I beseech thee, in the bowels of Christ, think it possible you may be mistaken.” – Oliver Cromwell, to the General Assembly of Kirk It’s interesting when traders (and investors) blow up. Sometimes you can see it coming, based on telltale actions or statements. For instance, I remember reading Vic Niederhoffer’s “Education of a Speculator” in the mid-1990s and telling multiple friends and colleagues: “This guy is definitely going [...] Because it is one thing to predict the inevitable when one doesn’t have a PhD in Economics, it is something totally different when it comes from the likes of Goldman Sachs (Huw Pill and Themistokis Fiotakis to be precise). In this case, that something is what happens at T+1, T being the inevitable (there’s that word again) point where payments from the ECB to sustain the zombified Greek patient, all [...] THE deep uncertainty over what will happen next in Greece unnerved financial markets. On May 7th the euro touched its lowest value against the dollar since January while in Athens the stockmarket fell by 7% and bank stocks by 13%. Greek bonds also took a hit, with the yield on the ten-year bond rising to 22.9% (from 20.5% at the end of April). Investors piled into the havens of German [...] TheEndRun.com Given Jon Huntsman’s recent attacks on Ron Paul (including his last week’s shameful “false-flag”-style dirty trick), and the media’s sudden decision to shower him with positive press in a transparent effort to manufacture a “Huntsman surge” self-fulfilling prophecy, a lot people have been wondering: Is he, or has he ever been, a member of the Council on Foreign Relations (CFR)? The answer is yes. While his name has not appeared on their [...] THE European Central Bank has come under criticism for its failure to act as lender of last resort to embattled sovereigns. Yet when it comes to banks, the traditional recipients of central bank support, the ECB is lender of last resort on steroids. Today, it lent €489 billion to 523 banks at 1%, at its first three-year refinancing operation. It was its largest refinancing ever. Banks used some of that to [...] A bank run (also known as a run on the bank) occurs when a large number of bank customers withdraw their deposits because they believe the bank is, or might become, insolvent. As a bank run progresses, it generates its own momentum, in a kind of self-fulfilling prophecy (or positive feedback): as more people withdraw their deposits, the likelihood of default increases, and this encourages further withdrawals. This [...] As President Obama campaigns for more government spending-a.k.a. his jobs plan-new unemployment claims provide fresh evidence the economy is stalling and in danger of slipping into a second recession. Big government could easily take unemployment above 15 percent and create a hole too big to ascend. New jobless claims for the week of September 10 rose to 428,000, up from 417,000 the previous week. Having [...] by ZH While we have no information as to who or why (we do know when and where) engaged in a transfer of 9,173 ounces of eligible gold (for a total of about $16.5 million) from HSBC’s gold depository into that of JP Morgan, according to today’s closing CME Group Metal Depository Statistics, we can merely point out that it happened. One back of the envelope [...] Stocks tumbled amid growing fears of a global recession, as investors confronted a grim mix of U.S. economic data and fresh concerns about Europe’s banks. The Dow Jones Industrial Average ended down 419.63 points, or 3.7%, to 10990.58. The Standard & Poor’s 500-stock index dropped 53.24 points, or 4.5%, to 1140.65, while the Nasdaq Composite lost 131.05 points, or 5.2%, to 2380.43. In the flight to safety, [...] |
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