The end of the World This Coming Sunday
I hope everyone has stocked up on some extra six packs of Ensure and withdrawn extra cash from the ATM.
The doom and conspiracy web sites are buzzing with information from their sources that the Greek election promises to spark a financial conflagration of biblical proportions once the outcome of the Greek elections are known on Sunday. Sites like SteveQualye.com (with a big flashy red alert screen) and others are warning of impending danger from a euro led meltdown. Danger, Danger, Danger.
My contrarian mind says one thing (relief rally Monday?) while the sensible part of me says not to try to game what happens on Monday.
This speculation has gone beyond the alternative news web sites. CNBC and Fox Business were quick to pounce on a poorly sourced Reuters story exclaiming that central banks were ready to act in a coordinated fashion to provide liquidity to the financial market should the Greek election spur volatility and result in disorderly markets. This is standard CB policy with respect to their perceived mandate to be agents of market stability. Really nothing new, but stocks bolted to the highs of the day nevertheless on Thursday.
Interestingly, gold moved off the lows but could muster a gain of only about $4 in regular Crimex (COMEX) trading, as if to say it is still looking for Total Drama Island style, all-out, brand spankin new QE from Benny and the inkjets. Will that come next Wednesday? Stay tuned.
RELATED: California Hedge Fund Is Latest Europe Crisis Casualty http://t.co/VfEJ1iM
Congrats if you have been long the market and were and have been able to book recent gains, but remember not to fall in love with the long trade and its underlying delusional state. It can change on a disme. One of my favorite stocks remains ARNA with its weight loss technology. A near triple so far from where i entered in May.
I had noted on Twitter that my intense dislike for JP Morgan’s Dimon was actually a BUY signal. Lol. If you don’t follow me on Twitter, you might want to if you are interested in intraday updates and for other very frank statements. I censor myself in this daily correspondence. I am @jkings1 on twitter.
Another Doom Scenario That’s Gaining Market Steam – Global Recession
Our government continues to pretend that GDP is modestly positive at an annual growth rate of 1.8% with its U6 unemployment rate at 15% and the housing market (from a national Case Shiller price perspective) in the tank. Haha – funny stuff. The real truth? The recession that got started with the financial crisis NEVER ended.
The economy has been contracting since 2004, according to John Williams’ Shadowstats.com.
So with the U.S. economy in a moribund state, various European economies in “official” recessions and sagging Asian economies even perma-bull Larry Kudlow is worried! He wonders whether we are already in a global recession: http://soc.li/67BQB8S.
Take Larry for what he’s worth.
The pundits - tin foil, or otherwise, think it’s over Sunday. I think the miserable situation will simply drag on. If I am wrong and everyone goes screaming into the streets com Monday, it won’t matter whether I am right or wrong. The Greek elections are fairly important and the integrity of the euro is actually far more important given the euro assets that saddle banks, especially in the West. Never doubt the odds of a black swan event, but I still do not underestimate the resolve of the paper ponzi regime to keep itself alive, though we are getting closer to its end. They’d better have plan Y ready, since they have gone through plans A through X.
WARNING: If you are jumpy do not watch this due to its surprise ending
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Author Jim Kingsland
Market commentator with focus on Gold and Silver after long broadcast career at FNN, Bloomberg, and Fox. #RandomHouse published author on PMs. Jim has also been involved in projects for CAC and Coinplex.
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