Europe KaBoom in [Market-Ticker]

Posted 2012-06-11 15:44
by Karl Denninger
in Blogtalk

Europe KaBoom

Oops -- more debt doesn't make too much debt better? Never mind the EU explicitly putting in place the structures for capital controls and other "fun" stuff.

How far are we from a literal detonation in the financial markets? We'll explore it, and our refusal, as a people and a nation, to put a stop to this crap.

http://blogtalkradio.com/marketticker at 3:30 Central today.

Discussion below (registration required to post)

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User Info	Europe KaBoom in forum [Market-Ticker]
Flappingeagle Posts: 1249 Incept: 2011-04-14	I'm expecting a great show today! With the Spanish bailout boosting the market for less than one day the question becomes: what is the life-span of future bailout or marketing calming activities? It does seem that over time the life-span has gone from a few months to a few weeks, to a couple of weeks, to a few days, to now less than one day. So, should we expect that something new will be done tonight? I expect something will happen even if it is the announcement that some new activity is being planned to help Spain, Greece, Ireland, or something. We could be entering the panic phase... Flap ---------- Here are my predictions for everyone to see: S&P 500 at 320, DOW at 2200, Gold $300/oz, and Corn $2/bu. "You can't build a house of cards on a shaking table." - Tony Johns The January 2015 AMZN put at $130 (cost $4.25) will be a winner. 2012-06-11 15:58:44 Permalink
Djsnola Posts: 202 Incept: 2009-03-16 New Orleans	More desperate acts and less time bought with each one. In fact, it seems these bailouts have gone parabolic. Guess the endgame is when a bailout buys no time and in fact causes the panic itself. Cant be long now! Question I have is will the Fed push Europe off the cliff to save itself? 2012-06-11 16:13:02 Permalink
Scrood Posts: 4111 Incept: 2008-05-17 There's Gold in Them Thar Hills! Online	I'll be listening, Karl! ---------- CTRL-GALT-DELETE 2012-06-11 16:19:32 Permalink
Jstanley01 Posts: 8282 Incept: 2008-07-30 San Antonio, Texas	---------- You can't cheat an honest man. ~P.T. Barnum 2012-06-11 17:01:53 Permalink
Noodleman Posts: 2509 Incept: 2008-11-01	When news broke that Spain would get the $100B + bailout I thought we would see the Rally Monkey come back out of hiding. I was wrong. At the end of the trading day all major indices down over 1%. Looks like the Rally Monkey got bitch slapped hard. The market is finally waking up. Life won't be easy for the Rally Monkey from here on in. Whether it's a bailout or forced austerity - it gets the back of the hand. ---------- "It may be true that you can't fool all the people all the time, but you can fool enough of them to rule a large country." William James Durant, 5 Nov 1885 - 7 Nov 1981 2012-06-11 17:31:23 Permalink
Reza30 Posts: 289 Incept: 2009-02-15	Karl, I wonder if your theory of "detonation" in financial markets will come to pass. Don't you think that the Central Banks have managed (and will manage) to keep this corpse of a market floating through extremely low volume while the money is being funneled through the primary dealers? So what if all investors leave the markets (as retail mostly has)? It would only take a few remaining ones with deep pockets to manipulate the averages. Thoughts? Last modified: 2012-06-11 17:51:02 by reza30 Reason: Typo 2012-06-11 17:49:29 Permalink
Genesis Posts: 131486 Incept: 2007-06-26	Sold to you. ---------- I don't care* if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2012-06-11 17:51:33 Permalink
Lowbeyond Posts: 17126 Incept: 2008-02-11 CO aka West NJ/East CA	what think tank was the guy from ? ---------- Maybe it was a birdy bread-bomber from the future?! 2012-06-11 17:58:54 Permalink
Flappingeagle Posts: 1249 Incept: 2011-04-14	These bailouts seem to be taking the following form: 1) some version, or several versions are floated out to calm the markets and to get everyone used to the idea of what is coming. This has the effect of making the bailout effect last longer by using the anticipation factor. 2) the bailout is then put into place which calms the market for awile, thus buying even more time. Today though, we had a bailout that died so fast that the next bailout did not even make it to the talk stage. If we have something like this happen again where the bailout's effects die before the next bailout can even be dreamed up, we are in for the end game. This would also apply to any policy changes, what ever form they might take, that are designed to calm the market in that if their effects last less than 24 hours then it is just about game over. Personally, I'm going to be watching pretty closely tonight and the next couple of days. Flap ---------- Here are my predictions for everyone to see: S&P 500 at 320, DOW at 2200, Gold $300/oz, and Corn $2/bu. "You can't build a house of cards on a shaking table." - Tony Johns The January 2015 AMZN put at $130 (cost $4.25) will be a winner. 2012-06-11 18:30:45 Permalink
Widgeon Posts: 13481 Incept: 2007-08-30 Region formerly known as the United States	Let us pray that today marks something new. 2012-06-11 18:32:55 Permalink
Crossthread Posts: 4619 Incept: 2007-09-04 Wilmington, NC	I think Po' Rally Monkey.... I think "Bond Vigilanties" got Him "tied-up" ATM... ---------- Cognitive Co-Dependency is when a normal rational person, internalizes irrational illogical presentations, and somehow reconciles them to fit their scripted indoctrination of logical analysis. Quote: Samuel L. Clemens:There is NO Native Criminal Class; EXCEPT for CONgress Last modified: 2012-06-11 18:44:02 by crossthread 2012-06-11 18:42:21 Permalink
Bertdilbert Posts: 2694 Incept: 2008-12-22 CA	Great show! If all Spain got was 12 hours... How many Euros a minute did the "save" cost? I think things just shifted up another gear on the stick. ---------- Dear Euroland: Relax, Germany has a plan for your money! Political Capital Defined: We are out of money but will tax our citizens for whatever it takes to "SAVE" the Euro. 2012-06-11 18:46:22 Permalink
Tinman Posts: 218 Incept: 2008-02-16	I've always wondered what TPTB consider there "safe" banking zone. We are not hearing a whole lot out of the FED or GOV on this. Tells me... it's not the Euro zone. Other than that I still don't know. Cue the monkey. 2012-06-11 19:05:27 Permalink
Bagbalm Posts: 4325 Incept: 2009-03-19 Just North of Detroit	Uh, Reza30 - if by leaving the market you mean all the private investors sell out at peak to the primary dealers and leave them holding the bag - sounds like a plan! Go for it. 2012-06-11 19:18:41 Permalink
Zacmilo Posts: 96 Incept: 2009-07-14 australia	Stock market gamblers down under should be singing God Save The Queen right now. The Queens birthday holiday yesterday saved their asses. 2012-06-11 19:40:15 Permalink
Eli Posts: 7260 Incept: 2007-09-10	I think the worst case scenario is the Fed makes some bull ** announcement in a couple of days. They will push their bet one more time, then market response is you I'm all in show me what you have got. That happens and we will be revealed to be just another *** with aids, which we are. ---------- If you want a vision of the future, imagine a boot stamping on a human face - forever. George Orwell 2012-06-11 19:50:13 Permalink
Genesis Posts: 131486 Incept: 2007-06-26	If The Fed comes in and the market crashes in response -- and it might -- it's over. ---------- I don't care* if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2012-06-11 20:17:20 Permalink
Anti Posts: 4374 Incept: 2007-10-09	Listening now. I was thinking even if retirees rental income drops, as you were laying out, their other costs would be dropping too, so not as big a problem as it might superficially appear. ---------- Health is better than health insurance http://gerson.org/ Over the past 60 years, thousands of people have used the Gerson Therapy to recover from so-called incurable diseases such as cancer, diabetes, heart disease and arthritis. 2012-06-11 20:35:34 Permalink
Donethat Posts: 782 Incept: 2009-04-22	Eh, Retirees generally have either of two costs, either medical in their last year of life, or driving the land yacht back and forth to their tourist destinations. No going back to 2006 costs in either of those cases. The problems are the different trough feeder scams, medical industry, financial industry, government taxes, are fighting it out between themselves, jacking up costs for everyone else. Check out the Z-1 2006 non financial US profits, 1117 Billion, financial 448 Billion.. 448 Billion a year in profit for gutting the US middle class? All about trough politics, and the pigs own the trough. 2012-06-11 21:12:01 Permalink
Buck350 Posts: 1349 Incept: 2008-10-22	Quote: ...the pigs own the trough. Nailed it. ---------- I think Paulson and Bernanke knew early on that Wile E. Coyote had already run straight off the cliff, so they chose to focus on frantic efforts to slow his descent before J6P notices the "gravity" of what has happened, hoping that the proles won't panic telegenically on the way down. 2012-06-11 21:16:06 Permalink
Eli Posts: 7260 Incept: 2007-09-10	Ben has his hands full, too small a bazooka and the market craps the bed too big and the market still calls bull **** . But it does not matter because the market will soon enough figure out that Ben is just covering a lie with another lie. What we need is more public sector jobs to get things going again just like my Obamammy said, ---------- If you want a vision of the future, imagine a boot stamping on a human face - forever. George Orwell Last modified: 2012-06-11 22:07:33 by eli 2012-06-11 21:40:21 Permalink
Zeebo Posts: 55 Incept: 2010-01-08 Chi Town	As a mortgage holder, who can make the payment without a problem, who thought he might have some equity (not at 1992 values), the concept of "strategic default" became, all of a sudden very close to home. I haven't had the opportunity to listen to many of these blogtalks, but that was VERY good. I will now be a weekly regular. Love the imagery of "banks hiding a pile of dead fish under the carpet" and "spraying Fabreeze like there's no tomorrow..." Thank you Karl. 2012-06-11 22:02:28 Permalink
Themortgagedude Posts: 8899 Incept: 2007-12-17 saint louis	Quote: What we need is more public sector jobs to get things going again just like my Obamammy said, nice sarcasm there What we need is to make health care affordable instead of readily available, to find energy independence, to bring our troops home, to cut unemployment off at 26 weeks, to reduce government workers by 10%, government workers salaries by 20%, and make their retirement age the same as social security. We need to raise the retirement age in steps to 70, to reach a trade balance, to put tariffs on environmental and slave wage countries. We need to shut down the insolvent banks. Chances of any of this being done prior to the collapse? Somewhere between slim and none and slim just left town. ---------- I'm already visualizing you with duct tape over your mouth. 2012-06-11 22:10:47 Permalink
Mo Posts: 12158 Incept: 2007-06-26 Pa.	You forgot - bring manufacturing back home to the US, TMD. ---------- Welcome to Pottersville 2012-06-11 22:15:54 Permalink

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