Jim,

The clock is ticking. There is nowhere left to hide. Every click has been foreshadowed here:

-"This is it"
-"It is now"
-"Now it is out of control"
-"This is the End"

Salud,
CIGA Pedro

Greek Debt ‘Twilight Zone’ Spurs Rise in Sovereign Credit Risk
By Abigail Moses

Feb. 18 (Bloomberg) — Credit-default swaps on sovereign debt rose on investor concern that Greece may be unable to borrow unless it gets a pledge of financial support from the European Union.

Greece needs to raise 53 billion euros ($72 billion) this year and faces about 16 billion euros of bond redemptions by May as it struggles to narrow a budget deficit that’s more than four times the EU limit. A political ally of German Chancellor Angela Merkel said yesterday that “not a single euro” should go to help Greece.

“It feels a bit like we are in the Twilight Zone,” Jim Reid, head of fundamental strategy at Deutsche Bank AG in London, wrote in a note to investors. “We are left with a stand-off that probably has to be resolved before Greece next comes to the market.”

More… ^[1]

Dear Jim,

Like Goldman doesn’t hide their debt via swaps. Pushing around weak countries, while foolish, is SOP for the untouchables.

Sure was. While I always respect the opposing side of the trade (enemy so to speak), I never let it (respect) blind me of their weaknesses. The primary weakness is the illusion requires a lot of moving pieces to maintain. This implies great complexity. As complexity rises, the room for breakdown or mistakes also increases. This does not go unnoticed by those opposing this trade.

The reaction in the bond market leading up and following the news is certain to raise some eyebrows. http://edegrootinsights.blogspot.com/2010/02/long-bonds-cot.html ^[2].

I have watched and studied markets in detail for some time. History is repeating, but I expect few to realize it.

CIGA Eric

Change we can believe in … not
CIGA Eric

BETWEEN THE negligible interest they pay us and the bonanza bonuses they pay themselves, we have reason to hate big banks.

Here’s one more: One of them may be shorting you on the free coin-counting service it offers.

Better spend or count those change jars first!

Funny how short-changing a coin count can bring the wrath, but the far more insidious and damaging devaluation of the currency that people work hard to obtain and carry in the pocket does not. This largely explains why the official policy playbook on how to manage a depression is what it is.

More… ^[3]

Jim,

It seems like we need a proper label for the bastards that keep using derivatives to destroy our nation and our planet. If a "Venture Capitalist" is somebody who puts their money at risk in a venture, enterprise or business to gain a return on investment from the growth of the venture then there should be a name for the entity who puts money at risk hoping to see the demise of a venture.

They are capitalists in both cases but one values productivity the other does not.

My thoughts are "anti-venture capitalist", "destruction capitalist", "crapout capitalists", "demise capitalists" or perhaps "demicapitalists". The last one suggests a "half capitalist" as in they want the venture to be worth half when they are done.

Have a golden day.
CIGA Tim

Biden: US got ‘money’s worth’ from stimulus act
CIGA Eric

Vice President Joe Biden asserted in an interview Wednesday that taxpayers have "gotten their money’s worth" out of the $787 billion stimulus program that Congress passed during the depths of the recession.

Another classic case of Damned if you do, damned if you don’t. Whether or not taxpayers have gotten money’s worth is certainly debatable.

What is clear is that most taxpayer supported stimulus has followed the law of diminishing returns since 1953. In other words, they are not getting as much income (bang) for the debt based stimulus (buck) as in the past. This trend towards shrinking income rewards from debt based stimulus must end before the next long-term recovery can occur. If this point is not realized, there will a time when no amount of debt creation (stimulus) will create growth. The recent and continued exodus of the political base might be a indirect acknowledgement of this possibility.

Annual Income Growth per Debt Creation:
^[4]

Source: finance.yahoo.com ^[5]

More… ^[6]

Yen ETF
CIGA Eric

The fill of the 2/4 gap on nearly half the volume reflects decreasing downside energy of the tape. The COT flows, despite the delay, will setup the turn.

Yen ETF (FXY):
^[7]

More… ^[8]