Business Summary Links By Day
$200
Oil Coming As Central Banks Go CTRL+P Happy Durden
2-24-12 We have been saying it for weeks, and today even
the WSJ jumped on the bandwagon: the
sole reason why crude prices are surging (RIP European profit
margins: with EUR Brent at a record, we can only assume the ECB will pull a
2011 and hike rates in 3-4 months even as it pumps trillions in PIIGS, banks
bailout liquidity) - is because global
liquidity has risen by $2 trillion in a few short months, on the most epic
shadow liquidity tsunami launched in history in lieu of QE3 (discussed
extensively here in our words, but here are JPM's).
Luckily, the market is finally waking up to this, and just as world central
banks were preparing to offset deflation, they will instead have to deal with
spiking inflation, because the market may have a short memory, it can remember what happened just about
this time in 2011. And the problem is that when it comes to the inflation
trade, the market, unlike in most other instances, can be fast - blazing fast,
at anticipating what the central planning collective's next step will be, after
all there is only one. And if Bank of America is correct, that next step
could well lead to the same unprecedented economic catastrophe that we saw back
in 2008, only worse: $200 oil.
Note - this is completely independent of
what happens in Iran, and is 100% dependent on what happens in the
3rd subbasement of the Marriner Eccles building. Throw in an Iran war and all bets are off.
Needless to say, an epic deflationary shock will need to follow immediately, just as in 2008, which means
that, in keeping with the tradition of being 6-9 months ahead of the market, our
question today is - which bank will be 2012's sacrificial Lehman to set off the
latest and greatest deflationary collapse and send crude plunging to $30 just
after it hits $200. , $10
Trillion In 2 years - 'Over' Abundant Liquidity And Expectations Durden 2-24-12 , Today's
Events: Consumer Confidence in Manipulated Markets, New Home Sales, Fed
Speeches Durden
2-24-12 Bunch of irrelevant and reflexive (stock market is up so
confidence - in what? manipulated markets? - is higher, so stock market is up
so confidence is higher etc) stuff today, as the world central banks prepare to
pump another $600-$1000 billion into the consolidated balance sheet and send
input costs into the stratosphere. , 'Gold
Bullion or Cash' Shows Buffett, Roubini, Krugman Mistaken; Faber, Rogers, Bass,
Einhorn, Gross Correct Durden
2-24-12 Currency debasement of all major currencies is happening today
on a scale never before seen in history. Yet there continues to be a complete
lack of awareness amongst the majority in the western world as to the risks
posed by our currency monetary and financial system. , SSDD - Same
S...&P, Different DayDurden
2-24-12 The last six months' market behavior is
somewhat breath-takingly similar to the
same period a year ago. With global central banks pumping (RoW
replacing Fed for now), energy prices soaring… , Frontrunning:
February 24 Durden
2-24-12 #1 U.S. Postal Service to Cut 35,000 Jobs as Plants Are Shut (BBG)
-Expect one whopper of a seasonal adjustment to compensate #2 European Banks May Tap ECB for $629 Billion
Cash (Bloomberg)
- EURUSD surging as all ECB easing now priced in; Fed is next #3 Madrid presses
EU to ease deficit targets (FT)
#4 Greek Parliament Approves Debt Write-Down (WSJ)
#5 Mentor of Central Bankers Fischer Rues Complacency as Economy Accelerates (Bloomberg)
#6 Draghi Takes Tough Line on Austerity (WSJ)
#7 European Banks Hit by Losses (WSJ)
#8 Moody's: won't take ratings action on Japan on Friday (Reuters)
#9 Athens told to change spending and taxes (FT)
, Europe's
Cash-For-Trash LTRO-'Scam' And The Indentured Servitude Of The Citizenry Durden on 02/23/2012 In a must-watch
follow-up to his original Punk
Economics Lesson, David McWilliams describes how the new bankocracy in
Europe will lead to a massive injection of liquidity; blowing bubbles in
financial assets while the citizenry is bled dry (ring any recent bells?). The
banks again get all the money they need while the average citizen shoulders the
burden. , Guest
Post: The Greek Tragedy And Great Depression Lessons Not Learned Durden on 02/23/2012 Greece has been the
most pillaged country in Europe this Depression, among other reasons, because
no one in any leadership position seems to have learned lessons from the 1930s
, Greece
(and the PIIGS) Are a MAJOR Problem… Even for the Strongest German Banks http://gainspainscapital.com
February 24, 2012 By gpc1981 ,
Crude's
Rally Shows $4 Gas On The Way The
Wall Street Journal [ Actually higher … oh, riiiiight … the that’s bullish
… Not! … Not even for the oils beyond the short-term! ] , TheStreet Harry
S. Dent, author of The Great Crash Ahead, says investors should expect a stock
selloff followed by further Fed action.02/24/12 03:30 - Gregg Greenberg In The Great Crash Ahead, Dent forecasts that this
economic collapse will become worldwide over the next few years. http://opinion.financialpost.com/2011/09/16/the-great-crash-ahead-harry-dent-now-predicts-dow-will-fall-to-as-low-as-3000 On the heels of his The Great Depression Ahead, Harry Dent, Jr.
has just published The
Great Crash Ahead. , Get Ready for the Retracement: Analyst , Feeling
That European Springtime Swoon Coming On Again Forbes 2/24/2012 , Chart:
‘America’s Per Capita Government Debt Worse Than Greece’ Feb 23rd, (The
Weekly Standard) — The office of Senator Jeff Sessions, ranking member on the
Senate Budget Committee, sends along this chart, showing that ‘America’s Per
Capita Government Debt Worse Than Greece,’ as well as Ireland, Italy, France,
Portugal, and Spain: http://albertpeia.com/debtpercapita.jpg , Gasoline
Prices Are Not Rising, the Dollar Is Falling Louis Woodhill | Eventually, all
prices equilibrate with gold. , In
Europe and America … No Retirement! Just Sufferin’ Daily Bell
| This is historic stuff. The
end of Dreamtime, folks. , Debt
Doomsday May Come Sooner Than Expected Politico | The federal government could
hit the debt ceiling sooner than expected — and possibly around the November election
— according to a report out Friday.