What's happening over there is not good. I'm not talking about companies going bankrupt and laying people off bad. I'm talking governments nearing default, interest rates rising rapidly and governments getting replaced.
Gonzalo Lira talked about today being the day that would start a liquidity run on European debt without the ECB massively purchasing bonds. Well, guess what, they did. So that will be postponed for later, but one of the things that has been very interesting and very big news lately is the Italian and Greek prime ministers resigning and being replaced.
George Papandreou and Silvio Berlusconi were forced to resign in the past two weeks for not getting their fiscal house in order and putting the entire European Union at risk of collapse. This will not end in my opinion until every country's head of state has been considered "friendly" in helping the EU and the European Central Bank do whatever it is they are trying to do.
The replacement of Berlusconi with Mario Monti is just what I am talking about here. A politician being replaced by a banker. The problem with this is that Monti will force the fiscal house to get in order. What's wrong with that, sounds like that's what they need, right? Sure, if they want more taxpayer funded bailouts of banks, increased retirement ages, lower social programs, etc. Banks who should be bankrupt already. Banks who pay their CEO's millions of dollars (or Euros) to run an already failing business into the ground with more taxpayer funded "loans." This is what is constituting an "answer" to the problem. This is no solution, only more problems.
So I also just quickly wanted to point out this...
Ann Barnhardt shut down Barnhardt Capital Management today with these words.
"The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy."
She goes on to say...
"Finally, I will not, under any circumstance, consider reforming and re-opening Barnhardt Capital Management, or any other iteration of a brokerage business, until Barack Obama has been removed from office AND the government of the United States has been sufficiently reformed and repopulated so as to engender my total and complete confidence in the government, its adherence to and enforcement of the rule of law, and in its competent and just regulatory oversight of any commodities markets that may reform. So long as the government remains criminal, it would serve no purpose whatsoever to attempt to rebuild the futures industry or my firm, because in a lawless environment, the same thievery and fraud would simply happen again, and the criminals would go unpunished, sheltered by the criminal oligarchy."
She was referencing the MF Global bankruptcy where money went "missing" to never be found. People lost money...a lot of money. The guess is that MF Global took client money to pay for company losses to bets on European debt. She is right, that is criminal.
What gets me is this is so very eerily similar to what happens in the book Atlas Shrugged. I mean, who shuts down a company off of principals like this? People that would rather quit the game that's being played, than be involved in the game. That's what happens when the game is rigged.
Here is the entire letter from Ann Barnhardt...
http://www.zerohedge.com/news/entire-system-has-been-utterly-destroyed-mf-global-collapse-presenting-first-mf-global-casualty
So I also just quickly wanted to point out this...
Ann Barnhardt shut down Barnhardt Capital Management today with these words.
"The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy."
She goes on to say...
"Finally, I will not, under any circumstance, consider reforming and re-opening Barnhardt Capital Management, or any other iteration of a brokerage business, until Barack Obama has been removed from office AND the government of the United States has been sufficiently reformed and repopulated so as to engender my total and complete confidence in the government, its adherence to and enforcement of the rule of law, and in its competent and just regulatory oversight of any commodities markets that may reform. So long as the government remains criminal, it would serve no purpose whatsoever to attempt to rebuild the futures industry or my firm, because in a lawless environment, the same thievery and fraud would simply happen again, and the criminals would go unpunished, sheltered by the criminal oligarchy."
She was referencing the MF Global bankruptcy where money went "missing" to never be found. People lost money...a lot of money. The guess is that MF Global took client money to pay for company losses to bets on European debt. She is right, that is criminal.
What gets me is this is so very eerily similar to what happens in the book Atlas Shrugged. I mean, who shuts down a company off of principals like this? People that would rather quit the game that's being played, than be involved in the game. That's what happens when the game is rigged.
Here is the entire letter from Ann Barnhardt...
http://www.zerohedge.com/news/entire-system-has-been-utterly-destroyed-mf-global-collapse-presenting-first-mf-global-casualty
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