Saturday, November 26, 2011

NATO attacks Paki troops

NATO helicopters and fighter jets attacked two military outposts in northwest Pakistan Saturday, killing as many as 28 troops and plunging U.S.-Pakistan relations deeper into crisis. Pakistan shut down NATO supply routes into Afghanistan - used for sending in nearly half of the alliance's land shipments - in retaliation for the worst such incident since Islamabad uneasily allied itself with Washington following the September 11, 2001 attacks on the United States.
Cargo trucks, including those carrying supplies to NATO forces in Afghanistan, are seen halted along the Pakistan-Torkham border, after it was shut down to traffic November 26, 2011. REUTERS/Shahid Shinwari

Tuesday, November 22, 2011

Swiss money base has exploded

My Swiss Franc updates ended moot when the Swiss National(Central)Bank started monetization to follow the Euro:
SNB Monthly report

Wall Street Unoccupied as 200,000 Job Cuts Bring ‘Darkest Days’

...wave of firings that has washed awaymore than 200,000 jobs in the global financial-services industry this year, eclipsing 174,000 in 2009, data compiled by Bloomberg show. BNP Paribas SA and UniCredit SpA announced cuts last week, and the carnage likely will worsen as Europe’s sovereign-debt crisis roils markets..

Monday, November 21, 2011

MF Global frozen customer funds may be more than $3 Billion

Anger mounts as MF Global clients see $3 billion still stuck
Three weeks after MF Global's collapsed, furious former customers are still fighting for access to billions of dollars as they question why as much as two-thirds of their money is still stuck. While authorities have touted the fact that they are returning 60 percent of the collateral and cash that had been frozen in the wake of the broker's October 31 bankruptcy, a closer look shows that in fact only about 40 percent of customers' total funds have been authorized for release so far. The remainder, more than $3 billion, ostensibly remains on hand to cover a shortfall originally estimated by MF Global to regulators at just $600 million.

Thursday, November 17, 2011

Italy citizens protests bankster government

Students in Italy's financial capital Milan threw firecrackers at police trying to prevent them approaching the Bocconi university, which is chaired by Monti and has become a symbol for the new executive of technocrats he has formed to tackle Italy's debt crisis.There were also protests in Turin, Rome, Palermo and Bari,There were also protests in Turin, Rome, Palermo and Bari, with demonstrators targeting universities where some of Monti's ministers used to teach, bank branches and tax offices. In Turin, clashes broke out between police and thousands of demonstrators including anarchists trying to approach the local headquarters of the Bank of Italy.

Wednesday, November 16, 2011

Tuesday, November 15, 2011

Italy 10-year bond yields rise back above 7%

Nov. 15, 2011, 6:43 a.m. EST The 7% level is seen as psychologically important, marking the point at which Portugal and Greece were effectively shut out of credit markets. The 10-year yield soared well above 7% last week amid political turmoil and a hike in margin requirements for bond traders before retreating. The yield on 10-year Spanish government bonds ES:10YR_ESP +0.18% rose 17 basis points to 6.25%, while France's 10-year yield FR:10YR_FRA +0.19% rose 15 basis points to 3.58% and Belgium's 10-year yield BE:10YR_BEL +0.19% rose 19 basis points to 4.79%

Reality about the future of energy

Political BS:
“We don’t have to wait on OPEC anymore. We don’t have to let them hold us hostage. America’s got the energy. Let’s have American energy independence.”- Rick Perry, CNN Debate, October 18
“We must become independent from foreign sources of oil. This will mean a combination of efforts related to conservation and efficiency measures, developing alternative sources of energy like biodiesel, ethanol, nuclear, and coal gasification, and finding more domestic sources of oil such as in ANWR or the Outer Continental Shelf (OCS).” – Mitt Romney
The alternative energy solutions are not big enough to replace our prodigious use of energy, and the talk about abundant United States domestic energy (affordable comparable with now) is complete bullshit.

Monday, November 14, 2011

California budget cuts as tax receipts way below projections; spending soars

California has fallen $1.5 billion behind in revenue
through the first four months of the fiscal year, state Controller John Chiang said Thursday, amplifying fears the state will impose deeper budget cuts this winter.
If the state falls between $1 billion and $2 billion short, the budget calls for cuts in higher education, social services and public safety. If the state falls more than $2 billion short, the state will cut K-12 schools and community colleges.

Friday, November 11, 2011

Doug Noland at Prudentbear:
I am of the view that inflationary policy doctrine (“inflationism”) is in the process of impairing the Creditworthiness of the financial claims that constitute the foundation of the global financial system. Massive issuance of non-productive debt and central bank monetization have irreparably distorted the global pricing of finance and the resulting allocation of financial and real resources. This backdrop has nurtured destructive speculative dynamics.

Hungary credit downgrade by S&P

From S&P Republic of Hungary 'BBB-/A-3' Ratings Placed On Watch Negative Owing To The Unpredictable Policy Framework Overview In our opinion, the predictability of Hungary's policy framework continues to erode, weighing on the economy's medium-term growth prospects. As a result, we are placing the 'BBB-/A-3' foreign and local currency sovereign credit ratings on Hungary on CreditWatch with negative implications. We are also placing the 'BBB-' long-term counterparty credit rating on the National Bank of Hungary on CreditWatch with negative implications.

Wednesday, November 9, 2011

Italian 10-year reaches 7.2% today.

LCH.Clearnet raises margin requirements on Italy debt

Market Stalls As LCH Announces Margin Hikes On Italian Debt Headlines for now but chatter is that LCH will lift charges on Italian bonds effective close today (Wednesday November 9th). The details can be found here. *LCH COMMENTS ON ITALY BOND DEPOSIT CHARGES IN WEBSITE DOCUMENT LCH Raises Deposit Charge on 10-Yr Bonds to 11.65% From 6.65%
More:The deposit factor for Italian bonds due in seven-to-10 years will rise to 11.65 percent, the French unit of LCH Clearnet said. That compares with a charge of 6.65 percent announced on Oct. 7. Clearing houses guarantee that investors’ trades are completed by standing in the middle of two counterparties, and raise margin requirements to protect themselves against losses should one side of the trade fail.

Tuesday, November 8, 2011

Italy debt crisis

Barclays Credit research via Zerohedge:
"At this point, Italy may be beyond the point of no return. While reform may be necessary, we doubt that Italian economic reforms alone will be sufficient to rehabilitate the Italian credit and eliminate the possibility of a debilitating confidence crisis that could overwhelm the positive effects of a reform agenda, however well conceived and implemented."

Monday, November 7, 2011

MF Global: Beginning of more Wall Street ponzi unravelling

Shareholders, last in line to recover anything from a bankrupt estate, may get nothing []. MF Global's largest common shareholders as of Sept. 30 were Pyramis Global Advisors, with 8.4%, and RS Investments in San Francisco, with 7.8%, according to court papers. RS has sold its entire stake, Erin Burke, a spokeswoman for the firm, said in an e-mail. Fine Capital Partners held 7.4% and Cadian Capital Management had 6.2%, the company said. J.C. Flowers & Co. owns 1.5 million preferred shares, MF Global said. Mr. Corzine, who joined MF Holdings in March 2010, is also an operating partner at J.C. Flowers.
JP Morgan damage control:
JPMorgan Chase sought to protect its own huge exposure to MF Global, asking the bankruptcy court to place controls on the cash it provided the company, according to a Dow Jones Newswires report. CreditSights analysts estimated JPMorgan could have up to $120 million at risk in the company. According to the bankruptcy filing and its third-quarter financial report, MF Global has 25,000-50,000 creditors and around $40 billion in debts.