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This is Normal; IF the Date is October 2008

H-o-l-y smokes. I never, ever, ever, thought it was possible to repeat stupidity of this magnitude twice in 20 years, but by God our Western banksters let the political elites lead them into this without even a whimper.

ZeroHedge, as usual (unless Tyler is asleep and I’m first), took the lead tonight and published this story:

Pozsar Warns Of Another “Lehman Weekend” As Russia Sanctions May Trigger Central Bank Liquidity Flood

It is a fantastic read and I suggest it highly, but as everyone should do with my articles, trust but verify.

The Goldman Sachs analyst has a right to be concerned. The problem from my sources at a few of the big pigs is that they are indeed freaking out. Got a guess why? Yup, just like October of 2008, counter party risk has popped up again, this time not only for sovereign debt CDS and other derivatives, but the markets are not prepared for 30% currency swings, even for the Russian Ruble.

Chart via

But why would the Russian Ruble matter?

Now that the “biting sanctions” are in place, Putin and his oligarch have ZERO, ZIP, NADA to lose. Thus they could close the domestic banks, default on any non-Ruble denominated bond debts, nationalize any European or British corporate holdings, liquidate all non-Russian government bonds via third parties, and lastly, wait until the carnage is over and use their massive gold holdings to introduce a 10% gold weighted Ruble.

Gee, wonder what happens then.

In the meantime, it might or might not be a “Lehman moment” but there is one thing for sure, it’s a Countrywide+Bear moment at its magnitude and that’s just what we will see publicly. The shadow banking system may well seize up and cause massive Federal Reserve, BoE, BoJ, and ECB intervention;

Which will only make the Wiemar nightmare look like a piker.

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