Wednesday, July 20, 2011

Fed and ECB cannot prevent a double dip

2008 © fintag

News comments:
It is pretty hot in southern Italy right now. My villa is tucked away and as much as I try and live the life of a tourist and ignore what is going on around me, it is pretty clear Italy is in a bad way.

The locals want to crash into my hire car for the insurance; I have to take my trash to the local municipal facility; there are no tourists except me; my villa has security to keep the Libyan looking beggars away. I kid you not.

Italy is in trouble. It feels unsafe. It is suffering the post 2008 crash blues. Despite efforts by those with printing presses and the business as usual crowd (Investment Banks mostly) pretending everything is all ok, it certainly isn't.

Crashes happen in October and there is going to be a biggy this year. Can't you feel it? Gold is way too high. The USA has way too much debt. Europe is way too arrogant. Bond yields don't make sense. Equities are way over valued. Interest rates are way too low.

As some of you know the banks have been firing a lot of people recently. Volumes are down. M&A activity is non existent. Tier 1 capital is tied up in safe as houses sovereign debt. Stress tests were fixed. Investors are scraping the bio tech barrel.

Of course the UK is also in trouble. It looks like a general election will be called later this year following David Cameron's friendly friends.

More fun and games. In my swimming pool that is.

Today's shorts:
History repeating itself (wikipedia)

Lady protects old man (nymag)

Today's longs:
Printing press solution the Obama way (bloomberg)

James Murdoch to join the Liberal Democrats.


Anonymous said...

Always thought that wendy was a bit of a slapper