http://blogs.telegraph.co.uk/finance...e-bond-market/
http://online.wsj.com/article/SB1000...174107122.html
I’m sure many of us read the articles attached to the links above, and, well, did nothing as the realization that we are powerless to seek redress dashed the hope for retribution.
It is with a peculiar regret that I feel vindicated in some of my earlier posts regarding the Spanish economy, and the seemingly imminent collapse of the living standards for the average citizen within Spain, and the greater ‘poor’ Europe. By collapse, I mean down from what is already a weak level of support, to one of hitting new lows.
To focus on Spain for a moment, the economy is pretty much busted as a ‘major player’ within Europe, levels of unemployment are getting out of control, wages and social security payments are not forthcoming, and austerity measures are so upsetting that those still fortunate enough to hold employment, are bringing the country to halt through strike and collective action. And then we learn that the Spanish Government are spending the population’s pension and health insurance on buying the country’s bonds in an effort to encourage large investors that this debt is still serviceable. Hmm, maybe short term, but big money cares not for social consequence, and will be out as quick as it got in. For those left behind, it seems like a leather noose of torture. Money comes in; leather becomes wet and expands from its grip a little. Money goes out; leather dries to a tighter constriction than last time it was dry, and so tightens the torture. Money comes in, but to a lesser degree as its reserves are gradually depleting, and the leather expands less than before. Money again leaves and the noose contracts more than before. The point seems to be fast approaching whereby there will be no more money to spend, and thus suffocation seems inevitable.
Moving on, we have seen the simultaneous drops across all the indices, and oil, and jump on gold. 20+ Dollars within the space of an hour or so yesterday when the NYMEX opened. In the space of a month, spot has risen by almost 100 Dollars. This tells me that many have had enough of trying to ride the ever-shortening periods of cyclical opportunities, or that said opportunities are becoming fewer and fewer, and that all the chatter from the politicians and big money is just, well, please excuse the language, but utter crap.
As for the protestations of recovery for economies that will see the economic situation of the citizen improve… erm, well, the recent figures for mortgage approvals in the UK, Europe and the US would suggest that these protestations are nonsense. I have passed comment upon retail figures previously; needless to say I remain sceptical.
I have also questioned the integrity of the stress tests undertaken by banks in the UK and Europe, and yesterday we learn that many of them had, and let’s not beat around the bush here, lied. Some banks have refused to detail their exposure – ah, the French, you have to admire their esprit de corps. Reading through the excuses of others for not having accounted for what are claimed to be, for example, innocent discrepancies in reporting format, one harbours the feeling that, at least at the executive level, bankers really are *ankers. Sorry gammase1, I could not resist.
But seriously, how much longer can government and executive finance continue the show? Of course, probity is long gone, and too much would be lost by those that hold something, should the real book be opened to public scrutiny and subsequent consequence. Yes, the ‘system’ would take a knock, but would it fail? Well, that is the big question that has few quantitative results to support qualitative comment about containment probability and the human spirit – I guess in this world of instant gratification, selfish procurement and dumbing down via education and soundbite news – all of which are not necessarily through personal choice, but, arguably, through a mix of direct and indirect social engineering – the human spirit today is not forced to aspire to the levels one would hope for.
Hmm, I’m not sure if I should go to the top of the roof of this hotel and just jump, or grab a smoke, beer and girl, and party.
http://online.wsj.com/article/SB1000...174107122.html
I’m sure many of us read the articles attached to the links above, and, well, did nothing as the realization that we are powerless to seek redress dashed the hope for retribution.
It is with a peculiar regret that I feel vindicated in some of my earlier posts regarding the Spanish economy, and the seemingly imminent collapse of the living standards for the average citizen within Spain, and the greater ‘poor’ Europe. By collapse, I mean down from what is already a weak level of support, to one of hitting new lows.
To focus on Spain for a moment, the economy is pretty much busted as a ‘major player’ within Europe, levels of unemployment are getting out of control, wages and social security payments are not forthcoming, and austerity measures are so upsetting that those still fortunate enough to hold employment, are bringing the country to halt through strike and collective action. And then we learn that the Spanish Government are spending the population’s pension and health insurance on buying the country’s bonds in an effort to encourage large investors that this debt is still serviceable. Hmm, maybe short term, but big money cares not for social consequence, and will be out as quick as it got in. For those left behind, it seems like a leather noose of torture. Money comes in; leather becomes wet and expands from its grip a little. Money goes out; leather dries to a tighter constriction than last time it was dry, and so tightens the torture. Money comes in, but to a lesser degree as its reserves are gradually depleting, and the leather expands less than before. Money again leaves and the noose contracts more than before. The point seems to be fast approaching whereby there will be no more money to spend, and thus suffocation seems inevitable.
Moving on, we have seen the simultaneous drops across all the indices, and oil, and jump on gold. 20+ Dollars within the space of an hour or so yesterday when the NYMEX opened. In the space of a month, spot has risen by almost 100 Dollars. This tells me that many have had enough of trying to ride the ever-shortening periods of cyclical opportunities, or that said opportunities are becoming fewer and fewer, and that all the chatter from the politicians and big money is just, well, please excuse the language, but utter crap.
As for the protestations of recovery for economies that will see the economic situation of the citizen improve… erm, well, the recent figures for mortgage approvals in the UK, Europe and the US would suggest that these protestations are nonsense. I have passed comment upon retail figures previously; needless to say I remain sceptical.
I have also questioned the integrity of the stress tests undertaken by banks in the UK and Europe, and yesterday we learn that many of them had, and let’s not beat around the bush here, lied. Some banks have refused to detail their exposure – ah, the French, you have to admire their esprit de corps. Reading through the excuses of others for not having accounted for what are claimed to be, for example, innocent discrepancies in reporting format, one harbours the feeling that, at least at the executive level, bankers really are *ankers. Sorry gammase1, I could not resist.
But seriously, how much longer can government and executive finance continue the show? Of course, probity is long gone, and too much would be lost by those that hold something, should the real book be opened to public scrutiny and subsequent consequence. Yes, the ‘system’ would take a knock, but would it fail? Well, that is the big question that has few quantitative results to support qualitative comment about containment probability and the human spirit – I guess in this world of instant gratification, selfish procurement and dumbing down via education and soundbite news – all of which are not necessarily through personal choice, but, arguably, through a mix of direct and indirect social engineering – the human spirit today is not forced to aspire to the levels one would hope for.
Hmm, I’m not sure if I should go to the top of the roof of this hotel and just jump, or grab a smoke, beer and girl, and party.
Author of: For Pip's Sake! (Available at Amazon... :-) )