By John Galt November 17, 2011 – 05:40ET Nothing like waking up to a failed bond auction. Despite the spin, there is no other way to describe today’s 10 year Spanish bond auction where the target sale allocation was € 4 billion but they were only able to sell € 3.6 billion on weak demand and at a record high median yield of 6.745% and a high end yield of 7.08%. The Reuters headline hits the nail on the head: Spain bond sale costs soar…
By John Galt November 16, 2011 – 07:00 ET If anyone thinks the roller coaster is over with, look at this chart of the S&P futures from last night through the early morning hours and until about 6:50 a.m. EST: (all charts courtesy of ForexPros.com) So the photo at the top of this thread of the Millennium Roller Coaster or the S&P chart are pretty much identical. Please keep your hands and arms inside the car at all times and strap yourself in as the…
By John Galt November 15, 2011 – 16:30 ET Just when everyone thinks it is safe to return to the calm waters of the Danube or the Rhine (that’s a joke, by the way), Ambrose Evans-Pritchard in this morning’s print edition of the U.K. Telegraph with this bombshell commentary: Utopian Germans risk full-blown EMU depression And to be honest, it is a decades old battle between those who want a monetary machine to print at will versus those who have lived through and understand the…
By John Galt November 15, 2011 -06:00 ET And it’s gone. So much for that. From Bloomberg:
By John Galt November 15, 2011 – 05:15 ET (chart from INO.com) Oops. The European Union’s reserve currency is showing signs of cracking again this morning as it falls back into the 1.35 range once again and the Italian/Greek/Spanish/Irish/Portugal/Hungarian/Austrian/French debt/banking/government crisis (circle all which match today’s news) accelerates into the winter. The only thing missing is a group of alcohol filled or drug induced bums and losers marching on the stock exchanges or city halls of large cities in those nations; er, never mind, that’s…
By John Galt November 14, 2011 – 07:25 ET With the successful overthrow of the Greek and Italian governments by the powers of Northern Europe, one would think that the world would be stable and life would return to normal right? Uh, no. The adults(bond traders) are back at work today and the next two weeks are truly some of the last serious trading periods before year end. In Europe an Italian bond auction was less than enthusiastically received and indications are that investors are…
By John Galt November 14, 2011 – 07:10 ET From Bloomberg: That is not going to make Greece any more solvent when one considers that for each Euro they borrow they have to pay back 2.5 Euros. This is the only indication one need to watch to understand that the European Union will be losing members and a financial civil war is about to begin between the Northern and Southern states over this matter.
By John Galt November 13, 2011 – 15:20 ET Ambrose Evans-Pritchard correctly identifies the symptoms of globalist domination but no one cares because it is more important to save banksters than enjoy the freedoms provided by national sovereignty. Click on the title to read the article from tonight’s U.K. Telegraph: The great euro Putsch rolls on as two democracies fall This excerpt should wet the reader’s appetite to read even more as this is an indictment of just how bad the situation in Europe really…
By John Galt November 9, 2011 – 21:25 ET From tonight’s UK Telegraph and Ambrose Evans-Pritchard: 11/9 AEP: Europe pushes Italy into the abyss No comment from me is necessary.
By John Galt November 9, 2011 – 06:15 ET UH-OH. We have an EAS test at 2 pm but on Wall Street the alarm went off early. S&P 500 futures are down a solid 26.90 as this is being typed and moving south since 0500. Meanwhile, the West’s economic future depends on a bunch of socialists who screwed their economies up to fix their economies and prevent a worldwide collapse. In the mean time, there are idiots who are trying to reassure investors around the…
By John Galt November 8, 2011 – 05:25 ET Despite record intervention, one chart has consistently been the warning signal for major market moves and forecasting the moves of financial markets worldwide: The Euro-Yen cross has been all over the board and the crash and burn started this summer then recovery due to JCB intervention has only returned the exchange rate back to where it was when the crisis accelerated in August. If this breaks again today, as it looks like it might, this could…
By John Galt November 7, 2011 – 21:15 ET Ambrose Evans-Pritchard’s latest from the UK Telegraph: France cuts frantically as Italy nears debt spiral From tonight’s article: “We wish to protect the French against the grave problems facing other European countries. Bankruptcy is not an abstract word,” said premier Francois Fillon. The belt-tightening plan — the second package since August, taking total cuts to €112bn — include a 5pc super-tax on big firms, a rise in VAT on restaurants and construction, and cuts on pensions,…
By John Galt November 7, 2011 – 08:30 ET The chart of gold this morning speaks volumes about the uncertainty in our world today: The Euro crisis shifts from Greece to Italy as the PIIGS are dominating world financial affairs. To make matters worse, the Italian crisis provides a snippet of what it will look like when Spain decides that they can not pay their bills even though the powers that be continue to insist Spain and Italy can “grow” their way out of the…
By John Galt November 6, 2011 – 15:20 ET Italy is toast. The G20 decided to do nothing. The ECB/EU cartel has no definitive funding source to bail out the dying PIIGS. And it is so bad they are turning East to the Bear (Russia) to beg for money. Tonight’s editorial in the UK Telegraph by Ambrose Evans-Pritchard just begins to scratch the surface of just how screwed Italy is. Click on the title to read the article in full: Europe’s rescue fiasco leaves Italy…
By John Galt November 4, 2011 – 05:20 ET From Bloomberg: Denmark Signals Banks Won’t See More Rescues From the article by Frances Schwartzkopff: “Danish banks are in better shape than their colleagues in other countries,” Corydon said in an interview in Copenhagen yesterday. “We have had four bank packages, and now the sector is consolidating.” Three lenders have failed since February, leaving senior creditors in the lurch and cutting off wholesale funding access for most of Denmark’s roughly 120 banks. At the same time,…
By John Galt November 4, 2011 – 05:10 ET The front page from the November 2, 2011 edition of Liberation pretty much sums it all up: And the chaos continues this morning. The S&P 500 achieved the technical support level of 1254 yesterday but the rally was on thin volume once again. Each rally has less breadth which is a nagging indicator to me that any bit of bad news will probably drive the markets down rapidly and violently. Gold is still building on its…
By John Galt November 2, 2011 – 22:00 ET The man with the classy mug versus the socialist with the liberal smug in tonight’s edition of Ambrose Evans-Pritchard column via the UK Telegraph. Click on this link below to see how AEP destroys the smug one in short order: Paul Krugman and Cameron’s realism
By John Galt November 2, 2011 – 08:00 ET Charts from Bloomberg.com and no commentary beyond “the panic is accelerating” is necessary beyond what each nation’s yields are telling you: Greek 1 year soars over a 230% yield this morning: Italian 10 year yield stays stubbornly above 6% despite ECB intervention: Irish 10 year yields creep past 8% again as the idea that the Hellenic contagion will spread: Lastly, French CDS spreads are expanding again and heading towards 200 points which should be a red…
By John Galt November 1, 2011 – 22:00 ET The calm before the storm is in place as the breaking news tonight via The Athens News: Cabinet backs PM’s referendum decision The cabinet decided early on Wednesday to back Prime Minister George Papandreou’s proposal for a referendum on a European Union aid deal, the government spokesman said. “The cabinet expressed its support,” said government spokesman Elias Mossialos. “The referendum will take place as soon as possible, right after the basics of the bailout deal are…
By John Galt November 1, 2011 – 21:35 ET Ambrose Evans-Pritchard nails it tonight in his UK Telegraph commentary: Revenge of the Sovereign Nation (Click on the link above to read in full) Excerpted: The Greek referendum – if it is not overtaken by a collapse of the government first – has left officials in Paris, Berlin, and Brussels speechless with rage. The ingratitude of them. The spokesman of French president Nicolas Sarkozy (himself half Greek, from Thessaloniki) said the move was “irrational and dangerous”.…
By John Galt November 1, 2011 – 05:30 ET The Greeks decided to actually put the latest Eurobankster blackmail, er, austerity program up for a vote. How dare they question the motives of the Rothschild family and the international banking cartel! Needless to say the idea that the PIIGS are thinking about that foreign and ancient concept of nationalism along with the foolish perception that sovereignty is something the citizens of a nation should determine is causing massive problems in world markets as the big…
By John Galt October 31, 2011 – 18:30 ET Tonight’s entry from the UK Telegraph is a must read. Ambrose Evans-Pritchard reminds us of the 1970′s and 1980′s era when the world thought Europe would erupt into a red revolution and violence became a part of everyday life. Click on the link to the story below to read it in full: Italy, Europe, and Red Brigade terror
By John Galt October 31, 2011 – 07:45 ET The Way we Were Memories Light the corners of my mind Misty watercolor memories Of the way we were Scattered pictures Of the smiles we left behind Smiles we gave to one another For the way we were Can it be that it was all so simple then Or has time rewritten every line If we had the chance to do it all again Tell me – Would we? Could we? Memories May be beautiful and…
By John Galt October 28, 2011 – 05:30 ET From the UK Telegraph, his last two columns are must reads: Portugal enters ‘Grecian vortex’ 10/28 AEP: Europe’s Punishment Union
By John Galt October 28, 2011 – 05:20 ET Way, way, way, way, way back in history, our esteemed consumer of ink and paper, Federal Reserve Chairman Ben Bernanke and the central bank allegedly leaked to the member banks of that corrupt group that a pending course of action was about to occur where the discount window would be opened and Cramer’s infamous rant would result in a stick save of epic proportions as the banksters would be able to continue the Great Ponzi for…
By John Galt October 26, 2011 – 23:00 ET Me thinks the smart money can smell alchemy and bullcrap….. (From ForexPros.com) Based on Fed and Japanese interventions in the past, if this were a true debt monetization, the smart money would be moving gold past $1750 right now and towards $1800 by next week. The details are one thing, the reaction of the monied players is another. If gold closes below $1700 tomorrow, this is another huge deflationary signal as the debts outstanding will be…
By John Galt October 26, 2011 – 22:27 From AFP tonight, 10/27 0408 CET: Eurozone seals rescue deal as banks agree loss While many might say the bank’s agreements are “voluntary” if you ask a pensioner in Greece, they will tell you otherwise. By imposing the Obamanomic General Motors solution of top down, bottom out, where those evil wealthy retirees eat the crap sandwich of the governments, it all but guarantees a European recession far worse than the U.S. 2007-2009 debacle which shall renew with…
By John Galt October 26, 2011 – 22:00 ET Ambrose Evans-Pritchard nails it again tonight as the hopium high wears off. (Click on the UK Telegraph link below to read) Europe’s grand gamble risks failure without ECB All you need to know is in this portion of the article: First loss is a form of structured credit all too like US sub-prime debt. It concentrates risk. Those holding these tranches of debt take the hit, in this case creditor states. The question is whether this…
By John Galt October 26, 2011 – 06:30 ET The fate of the Western economies is up to France and Italy. Ugh. Meanwhile in fantasy and rigged market land, U.S. equities tanked on light volume again, but that has been the trend except during massive down moves in the market with the exception of one oversold rally. The 1 year NYSE volume versus price chart below highlights this fact: From the chart: 1. First break in August resulting in days of massive declines. 2. Oversold…
By John Galt October 24, 2011 – 11:10 ET The French newspaper La Tribune, reports today (see: Recapitalisation : les banques françaises n’auront pas besoin de l’aide de l’État ) that there is no need for external or state help for recapitalization of their banks per Christian Noyer, Governor of the Banque de France. He stipulated that the need was around €10 billion and would not require assistance from the national government and could be handled without help from the ECB or IMF. Thus begs the…
By John Galt October 24, 2011 – 07:30 ET While Germany and France debate how to pillage the nation of Greece while preserving their own financial structures, the Greek bankers are somewhat ticked off over the desire to force the imposition of a managed economic system on the Greek people without their consent. The idea that the Troika would become a permanent oversight group for the Greek economy was floated during the meetings in Brussels, but now the European Union is looking to force higher…
By John Galt October 23, 2011 – 16:50 ET As the evening progresses, the jokes, er similarities between the U.S. in 2008 and the Eurocircus keep on coming. The latest story from Reuters reeks of the morons in Congress debating the “TARP” fiasco and the only thing missing is one of the Euros to come out like W did and say words to the effect that the European economy “was fundamentally sound and still growing” or other idiocy. The latest hilarity: EU bank plan may…
By John Galt October 23, 2011 – 14:50 ET Obviously the Eurocircus is getting desperate. In the old days of 2008, it used to be the simple story where China, Warren Buffet, or Goldman Sachs would buy out XYZ and rescue the civilized world causing the ES futures to spike 20 points on the open. Well, it is 2011 now and the days of the power and the influence of GS and the Orifice of Omaha has faded, so now its up to the most…
By John Galt October 23, 2011 – 13:00 ET The news from the Eurocircus continues, with this beaut from Reuters just minutes ago: Banks raise Greek haircut offer to 40 percent in talks: source Uh, the Greeks themselves said they needed 60% at a minimum as did an IMF study so one more time, how does leaving the bill on the German taxpayer’s tab help this situation again? From the article: Politicians, including German finance minister Wolfgang Schaeuble have asked private creditors to Greece to…
By John Galt October 21, 2011 – 05:30 ET What a week. The markets started with the promise of a Eurozone solution by Sunday and finish the week with a promise to discuses a promise to promise an announcement on Wednesday’s meeting by Sunday. The funny thing is the PPT and Bubblemedia have some morons actually believing that the Europeans have learned how to create solvency. The proclamations the world has heard thus far are as productive and logical as the guy in Ireland setting…
By John Galt October 19, 2011 – 18:20 ET To sum up tonight’s entry from Ambrose Evans-Pritchard in the U.K. Telegraph: Uh-Oh! Click on the link below to read the rest: Franco-German deadlock over ECB’s role in rescue fund
By John Galt October 19, 2011 – 13:45 ET UPDATED 10/19 1430: The “test vote” has passed, full vote tomorrow. Look for a fun day on the streets of Athens. FWIW, I wouldn’t park my rental car anywhere near, uh, anything. Well, at least their version of CNBC and the Bubblemedia has better foxy coverage. Feel free to translate and share for us as the news filters in…. Watch live streaming video from sbcgr at livestream.com
By John Galt October 16, 2011 – 16:45 ET Tonight’s edition for the October 17 print edition of the UK Telegraph’s latest from Ambrose Evans-Pritchard is about as cold, real, and hardcore as it gets. The article in full spells out how a “union” in Europe, and I use that term with a smug smile, could well lead to a financial crisis worse than Lehman and Merrill’s collapse combined without ever hinting as to the direct impact on the world economy. The sentence used in…
By John Galt October 13, 2011 – 05:25 ET (click to enlarge/reduce) The chart above is simple enough. The market rallied towards the 1220 resistance area on the S&P 500 yesterday, failed on low volume, and in the last hour sold off on heavy volume while selling into the close. This morning futures are mildly negative as of this posting but were positive overnight until Europe opened indicating that there is great dissatisfaction with the proposals put forth thus far as the European Central Bank’s…
By John Galt October 12, 2011 – 05:30 ET The rally monkeys have their backs against the wall after yesterday’s epic failure to breach the 1200 mark so today is do or die time. I would not be shocked to see the PPT pull out all the stops to attempt a squeeze move against the shorts remaining in the financial stocks and European sectors as this truly is a desperation period between now and Friday. Futures are up this morning but the rubber meets the…
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