Business Summary Links By Day
How
Can a Non-Existent Entity Bailout Spain… Or Anyone Else For That Matter? June 13, 2012 By gpc1981 ‘Spain’s Bailout is one big lie.I know, I know… Spain is “saved” thanks to a €100
billion bailout.But no one is asking just where this
money will come from?The IMF
isn’t involved. Nor is the ECB.The EFSF, which can’t
even raise €10 billion without having to step in to insure it doesn’t have a
failed bond auction isn’t a possibility (Germany doesn’t want it).That leaves
just the European Stability Mechanism (ESM)… except for the little known fact
that only FOUR of the necessary 17 EU members have ratified legislation to even
CREATE the ESM.That’s right… the ESM doesn’t even
EXIST yet.On top of this, Spain and Italy make up 30% of the ESM’s supposed “funding.” That’s right,
nearly one third of the mega-bailout fund’s capital will come from countries
that are bankrupt themselves and are either already requesting bailouts (Spain) or soon will be (Italy).Finally, and this is the
REAL problem with the ESM… Germany hasn’t OK’d it yet.In
fact, German opposition leaders have stated point blank that hoping for Germany
to ratify the ESM before its due date (July 1) is “completely unrealistic.”So…
Spain
is going to be bailed out by a non-existent entity whose leading member likely
won’t even have ratified its formation… before July 1.Sure things could play
out differently. But wasn’t Spain
literally on the verge of a systemic Crisis? And we’re talking about weeks…
possibly months before it gets a single Euro in bailout funds (assuming the
funds even show up at all).So I ask again… WHERE is the money going to come
from? It doesn’t exist. The whole Bailout is one big lie. The funds simply are
not there.Even if they were, €100 billion is NOTHING
compared to the REAL capital needs of Spanish banks. Heck, Bankia
alone needs €24 billion… and that’s just ONE BANK out of Spain’s €3 trillion banking system.Folks,
if you think we’re out of the storm yet in Europe,
you’re in for a very VERY rude surprise. It’s quite
likely the EU won’t even exist in its current form before the summer ends.The simple reason… THERE AREN’T ANY FUNDS LEFT TO PROP
UP the €46 TRILLION toxic sewer that is the EU banking system. End of story…’ , Moody's
slashes Spain debt ratings three notches , Dave’s Daily: http://www.etfdigest.com THE FED BUYS TREASURY AUCTION 6-13-12 ‘Just
how does this little game of Finance 2012 work anyway? To quote our friends at Zero Hedge: “A month after the U.S.
Treasury sold $24 billion in 10 Year bonds at what was then a record low yield
of 1.86%, the U.S. government once again approaches that mysterious primary
dealer-repo nexus with the latest offer U.S. banks can't refuse: a $21 billion
reopening. What is notable about today's auction is that in about 40 minutes,
the auction will price at a record low yield of just about 1.63%, or 23 bps
lower to the last record yield. Where things get patently surreal, however, is
when one takes a look at today's POMO operation conducted by the Fed (remember
those). Because as can be seen on the table below from the NY Fed, at 11 AM
today, so precisely 2 hours before when the Treasury will complete its own
sale, bought $4.8 billion of... wait for it... 10 Year bonds.” (And,
you thought QE and POMO were over probably.) Two hours later the Treasury
auctioned $21 billion in 10 year bonds at a yield of 1.622%. You can put 2 and
2 together, but this is the type of stuff which for the most part is done
behind the curtain and away from the MSM and financial media more absorbed with
Jaime Dimon. Call it what you will—three card Monte, Ponzi or just plain manipulation. Meanwhile the volatility
in markets continues at a high level. What’s the deal? Clearly we await Jobless
Claims (Thursday), Empire
State Mfg Survey,
Industrial Production, Consumer Sentiment and, of course, Quadwitching
(Friday). Then Sunday is another Greek election (ugh) and Wednesday’s FOMC
Meeting Announcement. So how do you like uncertainty in spades? This leaves any
commentator at a loss to describe the two-way action—down, up and then down
again. One day I feel good about being liquid and/or hedged while the next my
animal spirits stir. Well, you don’t care about that but I’m keeping this
commentary short given what lies ahead. There wasn’t much in the way leadership
since everything that led the way higher Tuesday reversed. The dollar (UUP) was
weaker since the euro (FXE) is so damn attractive. Gold (GLD) rallied some and
bonds (IEF), as noted, set new record lows in yield. Volume was average by
recent levels and breadth per the WSJ was quite negative…’ , Hannan: "The Euro Is The Problem, Not The
Solution" ZeroHedge.com Tyler Durden , These
Three Spanish Banks Will Be Downgraded Tomorrow As is well-known in the ratings world,
sovereign downgrades never come alone: first the sovereign is cut, then
sovereign-supported domestic banks (the sovereign is the threshold rating),
then general financial companies like insurance firms and specialty fins. Such
downgrades are particularly painful when they go through a major threshold such
from A to B as they spring various collateral and margin calls into action. One
thing we do know is that the last thing
undercapitalized Spanish banks can afford now is even more
margin calls, and even greater collateral haircuts. However, this is precisely
what will happen for the following 3 banks tomorrow: Banco
Popular Espanol, Banco
Santander and BBVA, all of which are currently at the old sovereign rating of A3 and
tomorrow will see their rating cut to Baa3, and we fully expect the other three
Moody's rated banks: Caixa, Banco
Financiero y de Ahorros and
Sabadell to be cut anywhere between 1 and 3 more notches, sending them into
junk territory. We can only hope that the ESM or whatever Spanish bank bailout
scheme is operational tomorrow as suddenly all of the banks below will find
themselves without any willing counterparties around the world. , David
Rosenberg Channels Felix Zulauf , Biderman & Santschi On
"Why Germany Should Leave The Euro" , Spain
Loses Final A Rating With Moodys Downgrade To Baa3,
May Downgrade Further - Full Text
, Egan
Who Just Gave Spain The Triple Hooks
And so, the little rating agency that could, just gave Spain the triple
hooks, downgrading the country from B to CCC+, negative outlook. As a reminder, the Uganda
credit rating is B: it sure is no Spain. , Greek
Bank Run Update: Up To $1 Billion A Day Now
, SocGen's Albert Edwards On Spain: "A Bailout Will
Solve Nothing" SocGen's Albert Edwards reflects that we have a lot to
learn from Japan's Lost Decade as a prequel to the current chaos the global macro-economy
is undergoing. Drawing on work by Peter Tasker,
Edwards notes the similar-to-current-Euro-thinking consensus view in Japan
was that their banks were at the center of the economic woes and hence bank
recaps were the turning point. Critically Tasker and
Edwards disagreed, as "although the banking sector was indeed damaging the
economy via a credit crunch, the banks were not the problem but a symptom of
the problem: the true problem was
deflation and the lack of stimulative policies.
Indeed, Japanese banks did not start underperforming the overall market until
1997 as they became the victims of the economic weakness; they were not the
origin of that malaise. And so it is in the eurozone.
The Spanish banking sector is a victim
of deflationary policies enacted at the behest of German economic orthodoxy. A
bailout will solve nothing." , Treasury
To Sell 10 Year Bonds At Record Low Yield Two Hours After Fed Buys... 10 Year
Bonds , Europe Bailout #5
Is In The Books , Farage: "The Euro Titanic Has Now Hit The
Iceberg" , The
Cost Of The Best Senate Banking Committee JP Morgan Can Buy: $877,798 In Bribes In about an hour's time, Jamie Dimon will sit down before the Senate Banking Committee and
prove, once again, not only who is smarter and calls the shots in the great
Wall Street-D.C. soap opera, but that when it comes to purchasing a room full
of senators (not to mention the script for today's "hearing"), JP
Morgan is always at the top. Because as the following table compiled using OpenSecrets
data, it cost JP Morgan just under $1 million, or $877,798.00 to be precise in
lifetime campaign contributions, to buy itself precisely one Senate Banking
Committee. And where it gets really fun
is that between the Chairman, Tim Johnson (D - SD), and the ranking member
Richard Shelby (R - AL), JP Morgan has been the top and second biggest campaign
contributor, respectively. Also, 9 (at least) of the total 22
members of the committee have received some form of bribe from JPM over the
years. ,
Retail
Sales Miss Ex-Autos, PPI Misses; Gold Soars On More QE Expectations Two
more data points, two more disappointments: retail sales declined in May by 0.2%,
in line with expectations, and unchanged from the April revision from 0.1% to
-0.2%. Worse however were retail sales ex autos which had the biggest drop in 2
years, sliding by 0.4%, on expectations of an unchanged print.
And so the retrenchment of the US
consumer arrives. But at least "housing has bottomed." And in further
'NEW QE is coming' news, PPI also missed for the nth month in a row, printing
at -1.0% on expectations of -0.6%, with foods dropping -0.6%, but energy collapsing by a massive 4.3%. PPI ex food and energy
(so the items everyone uses, but nobody ever really counts) was up 0.2%. Gold,
however, appears to be ignoring the core items, and has soared by $10 since the
report , Forget
Three Months: Italy May Have Two Weeks Tops, As "It Already Is Where Spain
Is Heading" , China seen as top economic power and Obama slips overseas , Unholy mess:
Vatican amidst mafia money-laundering scandal [ The unholy see? Or are they
conveniently blind? ] The Vatican Bank is under media fire as reports emerge
that Italian prosecutors suspect it of laundering Sicilian mafia bosses’
riches. , Ex-coach in
Sandusky case tells of shower scene San Francisco Chronicle ‘A
former Penn State assistant coach who was a central figure in Joe Paterno's downfall testified Tuesday that he heard a
"skin-on-skin smacking sound" in a campus locker room one night in
2001 and saw something that was "more than my brain could handle."
Jerry Sandusky was standing naked in the showers behind a boy, slowly moving
his hips, Mike McQueary told the jury. McQueary, one of the star witnesses in the child sexual abuse
case against Sandusky, said he had no doubt he was witnessing anal sex…’ , Accuser: Sandusky threatened me after assault , Pimco’s Bill Gross via Twitter: Gross: Fed buys 10-yr notes
at 11am; Treasury sells 10-yr notes at 2pm. One Hand Feeds the Other.
Remarkable! , Retail
Sales in U.S. Declined for Second Month in May
13-Jun-12 07:38PM European News Distorts Market Outlook - Here's What Really
Counts ETFguide
06:25PM JPMorgan Outpaces Market After Dimon
Talks Trading Losses On Capitol Hill at Forbes
04:17PM STOCKS TUMBLE, JP MORGAN RALLIES: Here's What You Need To Know
Business Insider 03:58PM Airlines Soar But ETFs Mostly Lower
Wednesday at Investor's Business Daily
03:41PM Airlines Soar But ETFs Mostly Lower
Wednesday at Investor's Business Daily
03:04PM InPlay: Stock indices continue afternoon pullback, nearing
early session lows -- Dow -71, S&P -7.7, Nasdaq
Comp -18 Briefing.com
02:43PM InPlay: Afternoon retreat picks up its pace in recent trade
-- Dow -47, S&P -5.2, Nasdaq Comp -13 Briefing.com
02:15PM Why the Quadruple Witch's Brew Won't Impact the Market as Much
as You Think at Minyanville 01:12PM European News Distorts Market Outlook - Here's What Really
Counts ETFguide
12:28PM Reflation returns as melt-up takes
hold at MarketWatch
12:28PM Reflation returns as Melt-Up takes
hold at MarketWatch
12:05PM Jamie Dimon's Testimony: Volcker Rule
May Have Prevented Loss at Forbes
12:01PM InPlay: Nasdaq Comp -0.3 joins
Dow -17 and S&P -1.7 back in the red Briefing.com
11:40AM Wall Street's Wednesday Lunch Options Optionetics 11:18AM Index, ETF option volumes near midday optionMONSTER 11:15AM Jamie Dimon's Testimony: Regulators
Can't Catch These Mistakes at Forbes
11:05AM InPlay: Dow -10 and S&P -0.4 slide back into the red --
Nasdaq Comp +4.4 Briefing.com
10:41AM Jamie Dimon's Testimony Gets
Underway: I Was Dead Wrong at Forbes
10:29AM InPlay: Stock indices lifting off morning lows/support --
Dow -24, S&P -2.6, Nasdaq Comp -3 Briefing.com
09:50AM InPlay: Modestly weaker start for stock indices, probe
first level supports -- Dow -48, S&P -5.9, Nasdaq
Comp -9 Briefing.com
09:42AM Retail Sales New Reason For Worry In Manic-Depressive Market
at Forbes 09:32AM Johnson & Johnson and SPDR S&P 500 ETF Most Active
Stocks in Pre-Market Today on the NYSE at Minyanville
09:10AM Pre-Market Primer: Greeks Run on the Banks, Dimon
Goes to the Hill at Minyanville
09:05AM Johnson & Johnson and SPDR S&P 500 ETF Most Active
Stocks in Pre-Market Today on the NYSE at Minyanville
09:00AM The Next Few Weeks May Confirm the Second Phase of the Crisis
at Minyanville
09:00AM Johnson & Johnson and SPDR S&P 500 ETF Most Active
Stocks in Pre-Market Today on the NYSE at Minyanville
07:37AM [video] Trading a Highly Correlated Market at
TheStreet 07:23AM 10 Things You Need To Know This Morning Business
Insider 07:20AM 10 Things You Need To Know Before The Opening Bell Business
Insider 07:10AM Three Reliable Utilities ETF Dividend Plays ETF
Trends 07:10AM 21 Ways To Use ETF Database ETF Database
07:10AM Three Reliable Utilities ETF Dividend Plays ETF
Trends 07:10AM 21 Ways To Use ETF Database ETF Database
Jamie Dimon Gets Heckled as Testimony Begins
LA Times | Hecklers
shouted “Stop foreclosures now!” but Dimon’s hearing
revolves around the company’s risk management-or lack thereof.
Postal
chief: If we do nothing, we’re Greece
CNNMoney | If the
service doesn’t cut costs, it’s going to be in the same dire straits as Greece.
Fed
Up with Euro? Irish Town Cashes in Old Currency
RT | As Eurozone tries to keep the
single currency afloat, one Irish town is banking on the past, to turn a
profit.
Endless QE? $6 trillion and counting
Reuters | Many more years of money printing
from the world’s big four central banks now looks destined to add to the $6
trillion already created since 2008.
EU Lockdown:
A Front Row Seat to Tyranny
Prisonplanet.com | European
Union apparatchiks are preparing to lockdown Europe following Greece’s exit.
How
Microsoft and Yahoo are selling politicians access to you
Pro Publica | Microsoft
and Yahoo are selling political campaigns the ability to target voters online.
Barroso
pushes EU banking union
Financial Times | All 27 EU
countries should submit their big banks to a single cross-border supervisor as
part of a banking union to be enacted as soon as next year, the president of
the European Commission has urged.
AP Business
Highlights
...Yahoo Market
Update…
Infowars.com | Now is the time to put an end to Obama’s
treasonous and tyrannical behavior.
http://albertpeia.com/impeachobama.htm
Nancy Pelosi Wants to Amend the First Amendment Kurt Nimmo
| When Pelosi says “special interests,” she means interests opposed to
establishment Democrats. [ Here’s a look at the pelosi
/ wobama styled new california ( 16 Reasons To
Move Away From California http://albertpeia.com/16reasonstomoveawayfromcalifornia.htm ) . pelosi’s incompetent / senile in that chronological order.
At this point, wobama the b for b***s*** is just
incompetent but acts and seems as if he’s senile, particularly with regard to
previous things he’s said and prior promises that he’s made. ]
Drudgereport: Obama: 'Sometimes I Forget' Magnitude of Recession…{
Oh! How conveniently forgetful, though the vast majority of americans don’t
have wobama’s luxury of feigned amnesia suffering from what wobama did and
didn’t do contrary to promises last time around the perpetual campaign trail
littered with his typical jive-talking b***s***! The following headline will
help him remember some of his sordid, pot-clouded high school past! }...
FLASHBACK: Obama's Sordid High School Past...
By Ben Shapiro ‘While the Washington
Post has been diligently digging into relatively innocent high
school pranks
by Mitt Romney, they’ve spent the last few years diligently ignoring President
Obama’s far more controversial high school days.Obama,
by all accounts, was a habitual drug user in high school. He tried cocaine, he
admits in Dreams From
My Father; he “tried drugs enthusiastically.” The Chicago Tribune reported back in 2007
that Obama thanked the “Choom Gang” in his high school yearbook; “chooming” was Hawaiian slang for smoking pot. The Honolulu Advertiser reported that Obama’s
senior portrait “prominently displayed … A package of ‘Zig-Zag’
rolling papers and a matchbook.” One of Obama’s close friends was arrested for
drug possession during high school.In his memoir,
Obama talked about routinely getting high. “Junkie.
Pothead,” he wrote. “That’s where I’d been headed: the final, fatal role of the
young would-be black man.” But, according to Obama, he only got high because he
was contemplating deep matters: drugs could “push questions of who I was out of
my mind.” Obama told students in 2007 that this activity constituted “goofing
off” and “wasting time”:"I will confess to you
that I was kind of a goof off in high school as my mom reminded me," Obama
said. "I went to high school in Hawaii,
so there's a lot of opportunity to goof off because the weather is really good
all the time …"You know, I made some bad decisions …. You know, got into
drinking and experimenting with drugs. There was a whole stretch of time where
I didn't apply myself. It wasn't until I got out of … high school, and went to
college that I started realizing, man, I wasted a lot of time.”The
New York Times, however, went
out of its way to find Obama’s classmates to testify that drugs played only a “bit
part” in Obama’s youth. Yet Obama would later brag on the campaign trail
that he “inhaled frequently … that was the point.”During
his high school years, Obama hung out with communist radical Frank Marshall
Davis; in 2007, the Los Angeles Times
reported that during his high school days, “he felt the first stirrings of
anger toward whites. He says he also delved into black
nationalism.” He was “offended or even enraged when white classmates
adopted black street slang or revealed their underlying consciousness of his
race by going out of their way to tell him how much they admired a black
musician or athlete.” This activity is certainly more reflective of Obama’s
ideological history than Mitt Romney’s pranks on teachers and fellow students.
And as for the drug use – well, that seems just a bit more serious than walking
a teacher into a door or cutting a student’s hair. But leave it to the Post to ignore or downplay all of that in
favor of continuing stories about Romney’s dog, his high school hijinks, and whatever other nonsense they can use to protect
President Obama from his own incompetence.’ Ben Shapiro is Breitbart News Editor-at-Large.
Follow him on twitter @benshapiro.
Cracks
in the Washington Post story on Romney’s ‘pranks’ emerge
Correction
Request: Washington Post Uses Falsehood in Romney Hit Piece
Media
Downplays Obama's Past, Tries to Define Romney with Teen Prank
If we're going to delve deep into a candidate's past, let's delve deep into a
candidate's past. Here's Obama in his own words admitting to physically shoving
a little girl named Coretta. Yes, it was at this moment that the first
shot in the War on Women was fired.http://albertpeia.com/obamashovesgirl.png
No doubt that after expending all that energy
bullying an innocent little girl, young Obama readied himself for round two by
eating a Golden Retriever. More on this breaking story here.If you're wondering what the rules
are regarding a candidate's past; how far back we're allowed to go in an
attempt to define them -- the answer is simple: the corrupt media will let
us know.
Washington Post Disgraces Itself By Targeting Romney's
'Anti-Gay' High School Pranks by Ben Shapiro { It
is true! The once great now failed newspaper, the washington
post, is an absolute
disgrace! But a shadow of its former self, the post is biased
presumably owing to shared desperation with the failed president wobama in return for access. So egregious had the bias
become wherein ‘sensitive’ commentary antithetical to wobama
and his, seldom seemed to work/post properly; and, then of course, the post’s pro-wobama
perpetual darkness-induced blind ‘constituency’. I stopped posting
there and have not visited their site since nor will I ever again. A
rather pathetic swansong /
end /
wind-down /
final chapter for what was once a great newspaper for which I had the utmost regard and respect! }
Obama WILL NOT pursue gay marriage as
part of party platform...
STONE: 'Playing a cruel and cynical
game'...
Unites Republicans?
New Black Panther Niggers Plan Newspaper
Cover With Zimmerman In Noose { and civilized people everywhere should respond
with niggers in nooses and contributions to the Klu Klux Klan! } ...
LOONEY CLOONEYLAND: BIG CAMPAIGN
BOXOFFICE FOR NIGGERO – Meanwhile, looney clooneyland ain’t doin’ so well with
the niggero model – see next headline! ...
Failed Wobama model illustrated: 16 Reasons To
Move Away From California http://albertpeia.com/16reasonstomoveawayfromcalifornia.htm
Postal Service loses $3.2b in first
quarter...
78% of California 8th graders fail
national science test...
_______________________________________
{ some prior links of current interest }
