The canary in the coal mine is choking…
Greek stocks tumbled to new 14-year lows this morning, as Greek bond yields rocketed to new all-time highs.
A Glimpse into the Future of the Sovereign Debt Crisis
May 20, 2011 By Leave a Comment
Why Increasing Bank Credit Can Only End in Catastrophe
February 14, 2011 By Leave a Comment
I have to admit that I was stunned that Fed Credit (the magical fairy dust from which money appears out of thin air) went up last week by a huge $19 billion, which the Fed itself used to buy $18.4 billion in government debt. In one week! In One Freaking Week (OFW)!!
As Eric Fry, Editorial Director of The Daily Reckoning, puts it, “The effect of this bizarre transaction is that one branch of the government issues debt securities, while another branch of the government purchases those securities”!!!
[Read more...]Greece: The Wile E. Coyote of Sovereign Debt
April 28, 2010 By Leave a Comment
When it comes to Greece, really, its like this:
At this moment, theres no telling what will happen to Wile E. and his Acme rocket. Maybe hell be shot off course, straight down into the canyon bed. Or the leather straps will break, and hell helplessly roll over the cliffs edge. Most likely, the rocket will explode right where it rests, reducing Wile to a black stick figure of smoldering soot.
[Read more...]Sovereign Debt Default: Learning from Argentine Mistakes
April 12, 2010 By Leave a Comment
Argentina is for economists with a sense of humor, if there are any left. Its for anyone who likes a good drink and a good laugh. And for anyone who wants a peek at the future.
What do defaults look like? Look at Argentina. The Argentines pulled off the biggest default on sovereign debt in history. In 2001, they defaulted on $132 billion in loans. Later, they negotiated a settlement that left lenders with their worst haircut ever.
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From Greek Debt to Gold Money: Wishful Thinking in the World Economy
Global investors rediscovered Greece yesterday, which means that they might soon rediscover gold and silver as well.
The state of Utah is ready!
Headlines about the Greek government’s desperate financial condition buffeted financial markets around the globe yesterday, as investors seemed to acknowledge, en masse, “Yes, this situation in Greece is grim.” The Parthenon may be in ruins, but it is a pristine high-rise compared to the Greek government’s balance sheet.
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