On November ninth something significant happened in Europe, stock markets crashed, but what caused it? Was it fear of dominoes falling in Europe (PIIGS), not really, the entire world knows about the debt problems of Portugal, Ireland, Italy Greece and Spain; so why the big reaction in the bond market and stock sell off? I believe the issue was simply, the torch of the country that was most on fire was passed from Greece to Italy (Italy is much larger and much more important to the eurozone). The important news out of Italy was not of the resignation of Silvio Burlesconi but the Italian bond yield spiked up over 7 percent, on that day (no confidence). Its hard for the country to pay 7% when they are broke.
I also believe that market participants are starting to realize that the European leaders, the politicians do not know what they are doing or they cant get together on a plan. The other possibility is, they do not recognize how large the debt problem really is, and because of this they will not be able to come up with a big enough money pot, if you will to solve the problem. Finally a feeling that if policies which include austerity measures be implemented it would make a bad problem worse (Austerity measures only lower tax revenues).
As far as I'm concerned the banks, investment houses and their greed, along with politicians who don't know what they're doing (or on gravy train) and lax central bank policy on interest rates CAUSED THIS ENTIRE MESS.
Does anybody remember what wall street did with all the bailout money, they bought expensive desks and tables and carpets and give themselves nice parties and trips to the Bahamas and gigantic bonuses at Christmas time. When did you ever fail in your business (or anything) and give yourself or someone gave you a nice bonus at the end of the year?
WHAT DEMOCRACY! Is our government or that of Europe’s democratic governments going to have Bastille day so to speak and hold these greedy SOB’s accountable. OweBama who ran on this notion among others, bring wall street and main street closer together, all election talk. Remember when he went to NYC he was supposed to scold the Banksters instead he went there and had an expensive meal rumored to be about a hundred K and went back to Washington with his PIMP DADDY SMILE!
Our elected officials will never hold the bankers responsible for what they did and I'll tell you why, the big banks and the investment houses wield immense power over the politicians far more than the voting public, they do this through a legalized bribing mechanism which they call this lobbying. The politicians get all kinds of financial and logistical support from the financial institutions. What the banks want done, will get done just take a look at that story I posted about MF global, the government is legalizing stealing from clients. The joke on wall street is, that they are in a casino in which they can’t lose because the investment houses were given federal insurance after 08 (Bank like status). This allows big investment houses and banks to take on as much risk as they want without fear of loss. The insurance allows for eventual socialization of their losses through bailouts. The Banksters rule this country not you or I, so know that and “act accordingly’ (Frank Costello, the departed).
Bottom line it for you: We need to see either forgiving the debt (wipe out all derivative losses, ain’t gonna happen) or a multi-trillion dollar QE program that is as aggressive as the cancer and we’ll be OK, but for the inflation (No one wants deflation). But if we don’t get either of those two CASH will be king, sell all assets. Better to make no money than to lose money.
I don’t know whats going to happen, but I do know heads they win tails you lose, so follow the banks. They control everything. Thomas Jefferson predicted all this many, many years ago.
I leave you with this
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."~Thomas Jefferson
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