Archives for June 2015

The Air We Breathe

Courtesy of Tim Knight, the Slope of Hope A few years ago, I was chatting with an acquaintance of mine who happens to be pretty rich. I don't know the exact figure, but his net worth was probably something like $80 million. He was definitely in "ultra-high net worth" territory and quite obviously never needed to work […]

How China Lost an Entire Spain in 17 Days

Courtesy of EconMatters Concerned about a tumbling equity market, PBOC moved to cut both interest rates and the reserve requirement ratio for banks over the weekend. However, increasingly wary of a market bubble in China, investors still sent Shanghai Composite spiraling down another 3.3% on Monday after the dramatic 7.4% plunge last Friday despite the support from the central bank. […]

Shoot the Dog and Sell the Farm

  Thoughts from the Frontline: Shoot the Dog and Sell the Farm By John Mauldin (Originally published on June 27, 2015) “If this were a marriage, the lawyers would be circling.” The Economist, My Big Fat Greek Divorce, 6/20/2015 Greece is again all the buzz in the media and on the commentary circuit. If you’re […]

Europe’s Controlled Demolition

Courtesy of The Automatic Earth. Unknown Soldier group, Federal Army 1865 I have plenty to say on the topic of this essay. But the most important thing I think is that I know the EU is blowing up itself by trying to exert far too much influence on the very member nations that made its […]

Fun, Fun, Fun

Well no one is having fun anymore. Here’s Paul Price’s take on the latest Greek drama. Fun, Fun, Fun … ‘til her daddy takes the T-bird away By Paul Price. Edited by Ilene. The popular press has made Germany into the villain of the current Greek drama (and popular bloggers point out the role of Goldman […]

Greece Rejects 25th Hour Request to Change Course; Tsipras Asks Eurozone for Third Bailout; Rajoy Seeks to Save His Own Ass

Courtesy of Mish. Coordinated Meddling Eurozone leaders are pouring it on thick again today with warning after warning. Yesterday, German chancellor Angela Merkel, French president Francois Hollande, and European Commission president Jean-Claude Juncker were all I in on the Coordinated Meddling hoping to convince Greece citizens to accept the current offer. Rajoy Seeks to Save […]

Goldman Sachs Doesn’t Have Clean Hands in Greece Crisis

Courtesy of Pam Martens. Tens of Thousands Protest in Front of the Greek Parliament Against Austerity Plan for Greece, Evening of June 29, 2015 Are Goldman Sachs executives Lloyd Blankfein, Gary Cohn and Addy Loudiadis losing any sleep over elderly pensioners waiting outside shuttered banks in Greece, desperately trying to obtain their pension checks to […]

Obama Urges Congress to Pass Law Letting Puerto Rico Declare Bankruptcy; Great Idea, Let Illinois Do the Same

Courtesy of Mish. Puerto Rico is bankrupt. The key problem is that while municipalities can declare bankruptcy, states and territories cannot.  President Obama recognizes the problem. He says No Federal Bailout for Puerto Rico. Instead he urges Congress to pass a bill allowing Puerto Rico to declare bankruptcy. The White House threw cold water Monday […]

Mr. “Lie When It’s Serious” Juncker, Lectures Greece On the Truth; Coordinated Meddling

Courtesy of Mish. Irony of the Day In a bitter 40 minute lecture, European Commission president, Jean-Claude Juncker, lectures Greece on the “truth”. Other than being a pompous buffoon, Jean-Claude Juncker is most famous for his statement “When it becomes serious, you have to lie“. I believe it’s safe to say that things are serious. […]

Good On You, Alexis Tsipras (Part 1)

Courtesy of David Stockman of Contra Corner Late Friday night a solid blow was struck for sound money, free markets and limited government by a most unlikely force. Namely, the hard core statist and crypto-Marxist prime minister of Greece, Alexis Tsipras. He has now set in motion a cascade of disruption that will shake the corrupt status quo to its […]

Technically Speaking – Bears Are Winning

Courtesy of Lance Roberts via STA Wealth Management Over the last several months, I have been discussing the "consolidation" of the markets and the various support and resistance levels that have contained generally contained the markets since the beginning of this year. For example, "While the rally this week was nice, it failed to break back […]

Greece, Democracy, And Magical Thinking

Courtesy of Charles Hugh-Smith of OfTwoMind What is representative democracy but organized bribery on a mass scale? Politicians seeking control of the spigots of state wealth and power promise endless swag to voters. Those who promise the most swag and do so with the most inspirational Soaring Rhetoric ™ win elections and gain control of the […]

Greek Crisis: What’s Next After Capital Controls?

Courtesy of EconMatters Greece Imposed Emergency Capital Control Greece is still staring down the barrel of a $1.8-billion loan payment to the IMF (supposedly due on Tuesday). The latest development is that Greece imposed emergency capital controls and closed banks starting Monday June 29 until after a July 5 referendum on a deal with European creditors. […]

Triumph of Democracy; Reader Reflections on Greece; Absurd Reactions

Courtesy of Mish. Reader Reflections on Greece Reader “AC” pinged me this AM with her accurate assessment of events in Greece. “AC” writes … I find strange that no Euro leaders realized that even if Tsipras accepted the deal, his parliament would with almost certainty have rejected it. European political leaders have lost the sense […]

Greece: Why Is a Nation of 11 Million Causing Stock Market Losses Around the World Today?

Courtesy of Pam Martens. Alexis Tsipras, Prime Minister of Greece, Asks Parliament for Referendum on July 5, 2015 Greece has just a tad more population, at 11 million, than New York City and its boroughs. But this morning, it has caused hundreds of billions of dollars to be erased from stock and bond markets around […]

Volatility and Sleep-Walking Markets

Courtesy of The Automatic Earth. G. G. Bain At Casino, Belmar, Sunday, NJ 1910 It is with immense pleasure that I can introduce the return to The Automatic Earth of my friend and co-founder Nicole Foss. If only because I myself can now retire to a beach chair…. (not). With the violent swings that have […]

Sudden Stop Thesis: What Are the Odds of Grexit Within Three Weeks?

Courtesy of Mish. Four years ago I thought odds of an eventual Grexit were nearly certain. Some people still don’t believe so, while others are just beginning to understand the obvious. Former Pimco Co-CEO El-Erian Sees 85% Grexit Odds With ‘Massive’ Contraction Coming. Greece is heading for a “massive economic contraction” and is likely to […]

Greek Asset Stripping Similarities

  Greek Asset Stripping Similarities Courtesy of Michael Hudson  (Originally published on June 27, 2015) A presentation at the Delphi Initiative.  

Bank Holiday: Greek Banks and Stock Market Shut Until July 7; Capital Controls Imposed

Courtesy of Mish. After the ECB shut off ELA, prime minister Alexis Tsipras imposed capital controls while blaming the ECB just as I predicted. Of course, that was an easy prediction. Yet, even at the last moment, many did not believe it would come to this. Let’s tune into the Guardian Live Blog for some […]

The Bush Family Goes “All In” For Number Three (With The Help Of Its Bankers)

Courtesy of Nomi Prins at Money, they say, makes the world go round. So how’s $10 billion for you? That’s a top-end estimate for the record-breaking spending in this 1% presidential election campaign season. But is “season” even the right word, now that such campaigns are essentially four-year events that seem always to be underway? In a political world stuffed […]

Why We’re Headed Toward A “Cashless Society”

Courtesy of Bill Bonner (annotated Pater Tenebrarum, Acting Man) Don’t Count on Your ATM Cards Yesterday, came a report that the prime minister of Poland, Ewa Kopacz, has urged Poles traveling to Greece to take “a larger amount of cash” with them. Why? Because the situation could be “very dynamic,” she says. “Please do not count […]

Dueling Mortgage Gurus and Uncertainty

Dueling Mortgage Gurus and Uncertainty By The Banker  One of the things that makes finance endlessly fascinating (to me!) is that perfectly sound logic for one situation turns out to be perfect madness in another situation. In my best moments I appreciate the ironies and contradictions. In my worst moments I despair for people whipsawed […]

Ignoring Tsipras Plea For Calm, Greeks Storm ATMs, Stores, Gas Stations

Courtesy of ZeroHedge. View original post here. Just a few hours ago Greek PM Tsipras addressed his nation imploring then to "remain calm" and reassuring them that their "deposits were safe." It appears the Greeks did not believe him. Many were wondering where the Greek bank lines were for the past several months. Turns out […]

ECB Cries Uncle, Halts ELA Amid Run on Greek Banks; Capital Controls and Bank Holiday Next?

Courtesy of Mish. I have been wondering when the ECB would finally pull the plug and put a stop to the ELA. Today, amid an accelerating run on Greek banks, the ECB capped the ELA. The Guardian has a Live-Update on the crisis. Here is the key point “No more extra emergency funding to Greece’s […]