Italian contagion pushes Spanish spreads to near-record 414 basis points
We are experiencing a European bond market crash. There’s not much time left. Make your trades now because a policy response is imminent; I’m thinking by Monday morning.
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Merkel: ‘The ECB has a clear mandate, stability of the currency’
This is a translation from a Handelsblatt interview with Amgela Merkel. MUST READ.
News Links: Everyone’s talking about what the ECB will do about Italy
Will the eurozone crisis send the gold price soaring? - Telegraph
Pressure grows on European Central Bank to start printing money.
tags: ECB gold liquidity
It’s time for you to fire the silver bullet,…
CDS are a mess
You saw my comments in the last post on the damage Europe has done in making a mockery of the sovereign CDS market. The Italy situation is worse because of this. Below is a video clip from Monday night of the Lang & O’Leary Exchange, a…
This is why people are buying gold now
Right now everyone is looking at monetisation and thinking this will save the day. You saw the Lakshman Achuthan video; clearly punters don’t think the US is going to double dip. Buy gold then.
Maybe they are right, but I see weakness…
Kelly Evans with Scott Sumner on Nominal GDP targeting
I don't have the bandwidth to discuss this topic but the last time I showed you a Scott Sumner video on this, I said this would be a hot topic and it is now. Brad DeLong, Paul Krugman, and Christina Romer, amongst other leading economists…
The World’s 29 Too Big To Fail Banks
Here is the list of so-called global systemically important financial institutions by country. Who’s missing in your view?
Sean Egan says Spain could be the next domino in the euro zone crisis
"If a country isn’t growing, it’s debt is growing as a result. So, any interest beyond, let's say 2.5%, is a problem. And with Italy's growth shrinking, as a result of the austerity measures they're putting in place, we're beyond it.…
Chinese coal now costs over $150 per ton again – huge gap to Australian prices
The Ministry of Finance is pumping money like mad into the weakened Chinese financial sector, over 1 trillion yuan, in order to shore it up from the souring of loans from all of the malinvestment over the past few years. If the Chinese…
News Links: Here’s why MF Global went under
Lessons From the Failure of MF Global - WSJ.com
The number that ended up killing MF Global Holdings Ltd. lay buried in a 139-page regulatory filing. The second row of a table on page 78 of the securities firm's latest annual…