Perfect Storm

I wrote that these Eurozone or ECB would not work together back in mid-October, and that the main stream media is not telling the story correctly. Today I am reading that Merkel says " The time for living on borrowed money is ending". Take that PIIGS. The louder the calls for ECB to print, the louder Germany is telling the PIIGS they may need to be annexed for their own good.

As you may know but possible don't care, Europe is in a world of hurt. Why you should care, is that when the European banks fall, it will take down the US banks as well. What you are seeing right now is that all asset classes are being liquidated because the world needs money. When everyone raises cash, everything else goes down.

It has been over a year now and the Union hasn’t done a single thing to get Greece going again. Greece itself hasn’t helped its own cause either by continually missing targets and expectations. Italy’s is a joke as well and i am certain their problems are bigger than what is being reported. Now we add Spain to the mix don’t think for a moment that any news that attempts to paint over the current situation is genuine. The European Union is closer than ever to dissolution. The experiment has failed but the suits in charge are too ashamed to admit to it.

Now we have MF-ing Global to pull confidence lower, why has no one been arrested? MF Global is one of the most outrageous and brazen abuses of customers by Wall Street insiders. It has been receiving so little attention by the mass media, it shows the extreme moral hazard in which the average American unsuspectingly operates.

MF Global is worse than Madoff. It was not a Ponzi scheme. The customers were not betrayed by a fraud. MF Global was overseen by the government and the guarantees of a major global exchange. MF Global stole(Gold Silver other property) confiscated, and sold these assets. In some cases this very property was stolen again by the creditors and criminals who now conceal it in an attempt to claim it as their own. You'd think this only happens in the Third World Countries, what is the world is going on?!?!

As bad as it already is, I fear this is just the tip of the iceberg, more will be revealed as they say. We don't know how high this goes up in the political food chain. 

Strategy: Short financials, no its not to late. Whats about to happen will make 2008 look like a walk in the park. Short energy, its only held up due to Iran jitters, that Israel may attack Iran's nuclear facility. Short the SPX. Stack Phyz. If you don't want to do this go 100% cash.

Intermediate target for SPX 1100, if Europe falls apart we will get lower than the 2008 lows on the SPX.