Financial topics

[aedens]

Reinhart: Let me be a little blunter: A haircut is a transfer from the creditor to the borrower. Who would get hit by a haircut? French banks, German banks, Dutch banks -- banks from the creditor countries. So you can see why this is politically torched. This is why it is not done, it's a redistribution. But ultimately it is going to happen, because the level of debt is too high.

[aedens]

Credit-default swaps rose to a six-month high of 370 points yesterday, according to data compiled by Bloomberg.

[aedens]

http://www.youtube.com/watch?v=hphgHi6FD8k

http://www.youtube.com/watch?v=UwUL9tJmypI acepted truths

due15 For the poor will never cease out of the land: therefore I command you, saying, You shall surely open your hand to your brother,
to your needy, and to your poor, in your land.
2ndcor11v9 And when I was present with you, and in want, I was chargeable to no man: for that which was lacking to me the brethren
who came from Macedonia supplied: and in all things I have kept myself from being burdensome unto you, and so will I keep myself.

[aedens]

Oil and copper are joining the party also. \ t

[vincecate]

Oil and copper are joining the party also. \ t

To me it feels like Japanese hyperinflation should be starting real soon. Interest rates are going up even though the central bank is buying like crazy. This means other people are getting out. This could be the start of the bond exidous. The Yen is down big over the last 6 months (like 30%). Earning 0.58% interest on a 10 year bond in Yen when the Yen has dropped 30% in the last 6 months means that even if the value of the Yen held stable for the next 10 years you are still losing. And the central bank is aiming for 2% inflation, so there is no way that 0.58% is going to get you ahead. Odds are they overshoot the 2% even if they don't get hyperinflation. So Japanese bonds are not a good investment. As more and more people realize this there should be a panic for the exits. That will be the sure sign that hyperinflation is starting, even if prices have not started going up.

Anyway Gold, silver copper, oil are all down big. But the dollar is only up a little. So it is not just that people are rushing into dollars and making them more valuable. I am really expecting the opposite of this, that commodities start going up fast. So I am not right, yet.

[aedens]

consistently in the MOAR at $24

[aedens]

http://www.telegraph.co.uk/finance/fina ... ouble.html

https://www.youtube.com/watch?v=DBuMl-FHAtI

These ambitious men were not naive; they were overconfident about their ability to manipulate. Culture change is inclusive to attributes and enumerated facts that swallow the common man whole devoid of knowlewdge not from a defect of the nature but design.

They have completly taken over and we had already been warned.

[Higgenbotham]

Woof-woof aside, we've seen this movie play out before with the jam late week in the week before op ex, and the manipulation of volatility.

Recalling the articles from a couple months back where some big money purchased about $100 million worth of puts, there's quite a battle going on here. It's become rather obvious who is winning that battle at present and that every effort has and will be made to ensure those puts expire worthless.

[Reality Check]

It is amazing what the reaction in the U.S. and all of Europe has been to what is happening in Cyprus.

The democratically elected government of Cyprus, pushed by the Democratically elected governments of the EU, has taken control of all, not some, but all the. money deposited by the people who voted for them in banks and, apparently other financial institutions in Cyprus.

The government, not the people who deposited the money in the banks, decide if and how many, Euros the voters can withdraw on given day.

That is true for all, not just those who have more than 100,000 Euros in the bank.

The Cyprus government physically and directly controls everyone's savings in banks and can dip into it anytime in the future for however much they want at that moment in time.

The elected officials now have determined they need to take take nearly double the number of dollars from some people in Cyprus to "save the banking system" in Cyprus. If not from the savings accounts in the bank, then from other higher taxes on someone.

Save the banking system for whom ? Who is going to trust it ? Who is going to use it ?

The government in Cyprus is now blaming those who saw the writhing on the wall ( about the government confiscating all money )and withdrew their own money from the banks before the government could confiscate it.

Those who did not save their money from their own government would have called those who withdrew it crazy - now they want to call them criminals for withdrawing their own money and make it more difficult for the government to seize their life savings.

Democratically elected governments in the west have crossed the Rubicon and no one, or almost no one, in the U.S. or Europe cares.

The political elite in Europe are now talking openly about how they will use such confiscations to resolve future banking crisis, but yet no one has the imagination to understand what it would mean to them.

[Higgenbotham]

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