In The News Today

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Jim Sinclair’s Commentary

The end is not near, it is here and now.

G7 to Hold Emergency Talks on Eurozone crisis, Spain Tops Agenda
G7 is holding the emergency conference call ahead of the EU meeting in late June and is expected to urge for more concrete action to save the single currency region.
By Geetha Pillai
June 5, 2012 8:37 AM GMT

Risks from Spain’s banking troubles along with eurozone crisis would be dominating the agenda of an emergency conference call to be held on Tuesday by the financial heads of the Group of Seven industrial nations.

Ministers and central bankers from the seven industrialised nations such as the United States, Canada, Britain, Japan, Germany, France and Italy would be discussing issues such as the eurozone crisis and the state of the Spanish economy at a special conference call.

"We have reached a point where we need to have a common understanding about the problems we are facing," Japanese Finance Minister Jun Azumi told reporters.

The fate of Spain, in view of its banking crisis, is being closely watched by global markets as there are serious concerns about it following the path of Greece, Ireland and Portugal which are already into bailout territory.

"Markets remain skeptical that the measures taken thus far are sufficient to secure the recovery in Europe and remove the risk that the crisis will deepen," Jay Carney, the White House secretary told reporters.

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Jim Sinclair’s Commentary

This is all coming to a head faster than anyone anticipates.

Soros’ three months is madness issued for the purpose of MSM/MOPE.

Spain warns of credit freeze
By Aaron Smith and Alfred Souza
June 5, 2012: 10:50 AM ET

NEW YORK (CNNMoney) — Spain’s Treasury minister appealed to European leaders for financial support Tuesday, saying the country’s credit markets are seizing up.

The yield on Spain’s 10-year bond has been flirting dangerously close to the 7% mark that smacks of default anxiety. Over the past week, the 10-year yield has been at its highest level since November.

Treasury Minister Cristobal Montoro told Spanish radio station Onda Cero that it is "technically impossible" for Spain to bail itself out. He said that Spain needs to get more money to improve its debt situation to open the bond markets back up so people can invest in the country.

"The risk premium says Spain doesn’t have the market door open," said Montoro. "The risk premium says that as a state we have a problem in accessing markets, when we need to refinance our debt."

Economists estimate that the Spanish government has about €800 billion in outstanding debt.

Meanwhile, the European Stability Mechanism, a bailout fund that comes into effect this summer, will be equipped with only €500 billion.

Spain, the new epicenter of Europe’s woes

Montoro said that Spain wants "to continue being part of the [eurozone] and must bet on the European institutions" to financially support the fiscally troubled Iberian nation.

The extent of Spain’s fiscal troubles were unveiled in May, when the government announced a €19 billion rescue of Bankia, one of Spain’s top lenders.

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Jim Sinclair’s Commentary

You have to be kidding!

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Jim Sinclair’s Commentary

You might laugh but I suggest this carries a real message. As I said to you today, Soros’ statement that Euroland has three months breathing time is fodder for MSM – MOPE. Euroland and the US Federal Reserve will be lucky to get three more weeks. That was the message of last Friday’s market.

The PPT (Plunge Protection Team) was saved by the day of the occurrence, Friday. If it had happened on a Monday there would not have been two days of time out in between. All PPT had to do was to jiggle the Dow and NASDAQ index futures in Europe to open unchanged to better by taking off the short side of the huge index spreads at a profit.

The sign the sage should carry is not The "end is near," the proper sign should say, "the end is here."

Uncollateralized Trillion Euro Perpetual Zero Coupon
By Barry Ritholtz – June 5th, 2012, 11:45AM

Michael Belkin is the author of the eponymously named Belkin Report — a highly respected institutional quantititative/technical service that looks at global markets in equities, commodities, currencies and bonds.

His report this week is tongue-in-cheek titled “Where Else Are You Going To Put Your Money?” and begins with this delightful spoof of the Euro bailout being contemplated by the ECB, LTRO, Germany and others and is appropriately named Uncollateralized BWDGTFBCWT Obligation, Series 17.01.

Mike imagines a trillion Euro perpetual zero coupon offered by Goldman Sachs, proceeds of which will be invested in Bailing Wire, Chewing Gum, Toasters, Facebook Shares and Circular Wire Transfers, which if you have to ask then you don’t want to know.

Prospectus below — be sure to read the fine print.

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Jim Sinclair’s Commentary

This is a visual that deserves your review as it is all you need to know about why now is the end.

Click here to view the infographic…