Europe Floundering on Debt Resolution-Taylor
Risk on, Risk off, EFSF to be massively leveraged, China will save Europe. Another session full of rumor trading, and wild swings with very little liquidity. Running a big hedge fund, must be a hard. Below video with Taylor, running the World’s biggest currency hedge fund. He is short the Euro….
Long term Rates (will rise one day…)
The World got into trouble because of too much Debt. We are supposed to de leverage, but the only thing we hear is how to bail out Europe by leveraging the EFSF. Without going into the argument of curing the Drug addict with more drugs, we can’t stop thinking of the below charts. What if rates some day start rising, despite Fed’s obsession with low rates?
and the de leveraging charts….
Fiat Money Inflation
Great explanation of the Fiat Money Concept. More Debt cured with more Debt. See similarities? Oh yes, Germany just passed the Leverage of the mighty EFSF. Revolution around the corner?
and Part two below. (Courtesy Jessie)
EU Summit-An Anectodal Preview
Guest Story by Macro Story.
So I moved into this new community recently. Nice place everyone has new cars, big homes and of course tons of toys. Fortunately we have a homeowners association. An HOA if you will. Basically they guarantee the place operates as planned.
After living there for a while a few cracks in the facade appeared. Apparently the place is not perfect after all. A neighbor is struggling to pay the mortgage so we all offered to pass a hat and help him out. No big deal. He says he can return the jacuzzi and a few other items he could not afford and be able to make future payments without our help. Hey we are a union of sorts, help each other out in time of need right.
Will Markets continue the Sell Off as we put in big reversals yesterday?
Low volume, no trend action in early European trading. The US markets reversed big time yesterday. At one point we saw a “mini panic” sell off. Broken markets, mainly driven by manipulation, intervention and HFT, are dangerous markets. We believe the sharp rally seen over the past days, with yesterday’s reversal, is the first sign in several weeks, of bulls getting less confident. Possible scenario presented below. SPX short and long term charts presented.
and the longer term chart….
News That Matters
Ft.com
Amazon shares plunged 12 per cent in after-hours trading after the online retailer forecast a possible operating loss in the fourth quarter as it spends heavily on launching its tablet computer rival to Apple’s iPad,http://ftalphaville.ft.com/thecut/2011/10/26/712106/amazon-falls-12-after-warning-of-possible-loss/
Italy’s prime minister was fighting on Tuesday night to stave off a collapse of his centre-right coalition government over European Union demands for more concrete economic reform measures in time for Wednesday’s highly anticipated summit of eurozone leaders, http://ftalphaville.ft.com/thecut/2011/10/26/712086/italian-government-on-brink-of-collapse/
Chinese Premier Wen Jiabao said that economic policy will be fine-tuned as needed and the industry ministry said it is studying “stimulative policies” for smaller companies as a global slowdown threatens growth,http://ftalphaville.ft.com/blog/2011/10/26/712051/wen-talks-of-fine-tuning-policy/
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