I agree with stonedog also, didnt we have something similar happen in 08/09 during long weekend and everything really popped on the following tuesday...I look for sticksave across the board tonight, tomorrow morning.

Stone and Stem, I agree that they may be able to save things again simply because they have pulled off some saves already.

I am thinking the system cannot do a partial collapse. What I mean by this is I don't think that Greece can default and not start a domino effect. If Greece does manage to default and not start an immediate collapse there is a very good chance you will see demonstrations in Ireland, Italy, Spain, etc protesting that their governments should default as well and not stick their own citizens with onerous levels of foreign debt.

To me the system looks fragile. Once it ever starts to go there is no meaningful support, kinda like the world trade center towers, once the collapse started it was the express to the bottom.

I don't think that there is any doubt that the world economy ran straight off the cliff a long time ago. All that TARP, the QEs, the suspension of FAS 157 and all the other financial shenanigans that have occurred since 2008 have done is to delay recognition of that fact.

The real question is whether the world economy has reached its Wile E. Coyote moment and recognized that we are about 50 feet away from the cliff and about 1000 feet above the ground. I'm not sure that we have recognized that fact yet. However, sooner or later gravity is going to kick in.

at least we can console ourselves that we got a new high score

Its interesting that there is an article in the UK proposing "ringfencing" the UK banks so there will never again have to be a bank bailout.

The banks are arguing it will cost too much - 0.3% of GDP!!

I see the counter argument to ringfencing as pure BS.

http://www.guardian.co.uk/business/2011/....

Not all "GDP" is equal and that's the ultimate problem with that number. Relying on it can give you a very false picture of what is going on.

I almost have to wonder if the common formulation of GDP was created in a fashion that was intended to allow debt to be substituted for production.

Eegads!!!...

Last night I woke up fiendishly hungry and decided I needed to eat some cereal. No milk, dammit. Got in the car and drove to the nearest 7-11, it was about 4 am. The guy behind the counter, I could not tell his nationality (without mentally racially profiling him and of course I have been to many classes that educated me not to do that)

He looked exactly like Ben Bernanke without the beard. So I told him he looked like Ben Bernanke. He didn't think it was a compliment.

AS for Karl doing a video update, Karl should do a PPV with a set full of Bernanke and Krugman bobblehead dolls a la Wall St. Pro.

Throw one of these into the mix and see what happens:

http://www.ynetnews.com/articles/0,7340,....

September is gonna be a booger.</understatement>

Stonedog wrote..

The real question is whether the world economy has reached its Wile E. Coyote moment and recognized that we are about 50 feet away from the cliff and about 1000 feet above the ground.

Yep, that's the question. When all of the QE's, ZIRPs, debt monetizations, fiscal stimuli, bailouts, frauds, and phony balance sheets have run their course, then, perhaps, the sheeple will realize it. And then ... KABOOM !!!

Do you think any cash that is left will flow to real estate, gold????

Guns and ammo, more likely Sunriser.

Go long lead!

This would be a very bad week to give up drinking.

I don't see a stick save arriving this time, welcome to 1987.

With Hoffa calling the unions Obama's 'army' and telling them to 'get ready to march', something's definitely going down.

Boy it's nice to have known Karl and you folks for the last 4 years - there's nothing left to do - no more preps to be made - only popcorn to be popped and a chair to pull up to watch the show:-)

Mo- hoffa has the same math disability as the Black caucus - they can "march" all they want, we out number them 4:1 - good luck with them odds:-)

I'm with LS2. I think we get little in the way of stick saves for the time being.

And I've been beating that drum for a few years - that they should have kept their ammo for when it was really needed. But now ben is out. Okay, maybe he has a few rounds left but he has got to use them sparingly.

why are s&p futures only showing to be down 8.90? http://money.cnn.com/data/premarket/

Bshj....you actually want futures to be down as little as possible if you plan to short the market...

Why do they alway uses a 'holiday' to pull the rabbit out of the hat, Rocky?

Listening to NPR today, the situation is 'really bad'. And this was put in
motion 'years' ago.

yes, I have noticed that every time futures are down big it ends up being another launch for a rocket-rally

Some y'all might think I'm a PollyAnna, but functioning markets go DOWN too.

Markets discount expected outcomes, when they are functioning. Sometimes that means a crash.

Markets have survived wars, and all kind of mayhem over past hundred or few years. Lots of investors haven't but that's not the same :)

As best as I can see, the markets are the most relevant mechanism for discounting the "mind of the public" and expressing that into reality as I know.

Some of the damage we've been discussing has been priced into the markets already. (Duh, just look at Greek bonds.) I suspect part of a currency reset has been as well (as gold and silver have seemingly decoupled from the broader commodity indices).

That's not the problem in the intermediate term, at least here.

It's the pensions - especially ones like Calpers.

That's where the real trouble is and what I'm concerned about.

Bshj wrote..

why are s&p futures only showing to be down 8.90?

On my trading screen I have /ES down 30.50, currently at 1139.

Tomorrow should prove to be fun.