Monday, January 13, 2014 Thursday, October 4, 2012 Thursday, August 2, 2012
Italy’s Prime Minister Mario Monti said the permanent rescue fund will gain access to European Central Bank liquidity via a bank license, challenging German policy makers to back more actions to tame the euro-area crisis. 
“I think this would help, I think this will in due course occur,” Monti said in Helsinki yesterday at a news conference with Finnish Prime Minister Jyrki Katainen. Monti’s assertion was a rebuff to Chancellor Angela Merkel’s Cabinet hours after ministers meeting in Berlin hardened their opposition to granting the planned bailout fund access to the ECB’s resources. 
(via Monti Bets on Banking License for Rescue Fund in Poke at Germany - Bloomberg)

Italy’s Prime Minister Mario Monti said the permanent rescue fund will gain access to European Central Bank liquidity via a bank license, challenging German policy makers to back more actions to tame the euro-area crisis.

“I think this would help, I think this will in due course occur,” Monti said in Helsinki yesterday at a news conference with Finnish Prime Minister Jyrki Katainen. Monti’s assertion was a rebuff to Chancellor Angela Merkel’s Cabinet hours after ministers meeting in Berlin hardened their opposition to granting the planned bailout fund access to the ECB’s resources.

(via Monti Bets on Banking License for Rescue Fund in Poke at Germany - Bloomberg)

Tuesday, July 17, 2012

(via Medicine is Killing the Patient; Increasing the Dose is Madness)

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I absolutely agree.  Given that Europe suffers from a Currency Crisis; which basically means that different economies with different structures are being forced to remain in a system that works only for similar structured economies, continuing on the path politicians insist on (saving the Euro) will create a very unstable situation politically, socially, and economically.  Either they must seek political and fiscal union, which I am not hopeful for, or they let the Euro dissolve.  

Monday, October 17, 2011
We’re keeping it very liquid, because I don’t know where this is going. Real estate and newspaper mongul Mortimer Zuckerman on the Eurozone situation.
Thursday, October 13, 2011 Tuesday, September 20, 2011 Monday, September 12, 2011 Tuesday, August 16, 2011

Moment of Truth May Be Here for Europe

US markets ended in negative territory today.  Most of the action was attributable to a disappointing result from the latest “Merkozy” meeting.  No Eurobond program was announced; not even an expansion of the EFSF.  Instead, they called for Eurozone nations to enact balanced-budget constitutional amendments as well as the formation of a “new economic government”, to be completed by summer 2012.  On the prospect of Eurobonds Sarkozy stated: “One day we could imagine them, but at the end of a process of European integration, not at the beginning”.  The prospect of Eurobonds, seen by many, as the only solution to stop contagion seems to be far off.  Eurozone officials are woefully behind the curve in my view.   

The recent slowing in core-countries such as France and Germany (not to mention contraction in most peripheral countries), makes the current situation even more dangerous.  If Eurozone economies (especially France and Germany) were expanding smartly, perhaps investors would have more patience and accept piece-meal steps like the ones discussed today.  Unfortunately they are not; French GDP growth stalled while German GDP only grew at a 0.1% in the second quarter.  Confidence is dangerously fragile.  What happens if the market doesn’t have the patience to move at “political speed” anymore?  Today Art Cashin, Head UBS Trader, said that Europe’s wolfs may circle the markets tomorrow morning.  If European markets have an ugly day tomorrow, it would signal that investors have had enough of the can-kicking and want results now.  I don’t think the EU would be able to provide them in time due to a myriad of legal hoops and bureaucratic steps ALL European governments would have to go through.  The political will of the people is increasingly not in favor of continuing the madness either.      

The global economy is walking on thin ice and I can hear cracks.   

Thursday, July 21, 2011
Tuesday, June 21, 2011 Saturday, March 5, 2011 Friday, January 28, 2011

Markets are tanking as the Egypt issue is gaining momentum.  Reminds me of Greece.  While Egypt isn’t that big a player on the global stage, the Suez Canal, which is an important waterway for oil shipments may be shut down.  This explains why oil is up 4+% today. 

Come on Fed, keep printing.  Give investors more liquidity to bid up asset prices.  These are the results.   

Wednesday, December 8, 2010

Even though I believe that Treasuries are a good buy at this point, it’s always good to hear the other side of the trade….and boy the story sure is getting stronger by the week it seems.