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Articles by Debeachesand Je.
Did The Market's "Wile E. Coyote Moment" Begin?
By Michael Green of Icefarm Capital And so it begins… As postulated last week, we had entered the Wile E. Coyote moment where hovering risk assets had little underpinning. This proved to be largely correct, although obviously disappointing in the US versus the “Lehman” comparisons that circulated in the popular press. In contrast, European indices in US dollar terms absolutely cratered. To suggest that this has been the calmest risk-asset disaster in history doesn’t seem like an understatement.
Buy Gold and Silver Coins and Bars Now Warns Leading Financial Adviser in Ireland
Buy Gold and Silver Coins and Bars Now Warns Leading Financial Adviser in Ireland Buy gold and silver coins and bars for delivery and storage has advocated a leading Irish financial adviser. Eddie Hobbs has given advice to clients and the wider public and says that they should buy silver and gold bullion in order to protect from the coming global financial crisis.
Guest Post: Do The Swiss Know Something The Rest Of Us Don't?
Via John R. Schindler of The XX Committee, Do the Swiss know something the rest of us don’t? Ueli Maurer, the Swiss defense minister, has been making coy statements about the European crisis getting ugly – as in really ugly, like needing armed troops to deal with it. This sounds more like Greece, where the rioting is regular and increasingly scary, than anything in Central Europe, but where the whole EU furball is headed does seem less than clear of late.
Citi Expects Imminent Easing From Central Banks Of China, Australia, Japan And Europe
In the past few months, Citi's chief economist Willem "Gold is a 6000 year old bubble" Buiter, has been making increasingly more hyperbolic and grandose predictions about the future, which doesn't make them wrong. First, in August, after the US stock market tanked in the matter of days, he predicted that "Only "Helicopter Money" Can Save The World Now" the reason for which being that just a few days later, Citi made a "global recession in 2016" its base case scenario.
VRX Halted Down 40%, Issues Statement, Says "Citron's Report Is Erroneous"
Valeant Pharma is halted for the 4th time today, this time for news pending, as the stock has lost 40% of its value since the open. The recent bounce, on what David Faber said may be the company buying back stock, just fizzed: Nomura says - do not worry... But the rest of the Biotech world is in full panic denial mode... Who can blame them.
Oil Tumbles Under $43, Approaches Goldman's "Last Ditch" Support Level
WTI Crude just broke to a $42 handle - which would be the lowest closing price on a continuous adjusted future contract since March 2009. Based on the front-month contract, Goldman Sachs warns that there is "last ditch" support between $43.24 and $42.44 - a break below there could lead to serious capitulation... Average: Your rating: None Average: 5 (2 votes)
Emerging Market Mayhem: Gross Warns Of "Debacle" As Currencies, Bonds Collapse
Things are getting downright scary in emerging markets. Just ask Bill Gross: Or have a look at this week’s headlines: And on, and on. One particularly alarming case that we’ve been keen to document lately is that of Brazil which, you’ll recall, is "up shit creek without a paddle" both figuratively and literally.
The Central Bankers Dilemma: The Pendulum’s Back Swing
Today, July 5th, a referendum is to be voted on in Greece as to whether they should vote “Yes” for the austerity measures demanded by the bankers of the Euro Zone (EZ.) Or, vote “No” against such demands. Where a “no” vote will in effect all but ensure an exit from it (whether voluntarily or not.) How this vote will come down no one knows.
Risk Off: FX Carry Trades Tumble, Euro Opens Under 1.10; USDJPY Under 121
With nearly 60% of the Greek refrendum vote counted, and the No's leading by a landslide 61%, it is clear that the Troika's gambit failed, unless as Goldman wrote and we first noted, it was the ECB's intention to force a Grexit all along, thus permitting the ECB to engage in more QE: QE which would in Goldman's estimation, push the EURUSD down 7 big figures and further toward parity, sending global stocks soaring in one last central bank-inspired hurrah.
Draghi: We Have Nothing To Fear But Gold-Buying Itself
ECB head Mario Draghi made it clear where the real battle is taking place in the world this morning. When asked what form QE would take, his response was to the point... "On what sorts of assets should be included in QE... we discussed all assets BUT gold" and gold dropped, right on cue.
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