tell rosy to take a break
you can tell by looking at doors?
huh?
...Should get interesting in March when the bills come in..
The MSM media has moved away from the narrative that Greece can be fixed. The new narrative is now that the "firewalls" are in place and the fallout can be contained.The time for patching it up is over; Greece looks as if it can no longer stop the seams from falling apart. Restructuring (an economy) in a low (negative) growth environment simply does not work. The prescribed medicine (austerity) has failed; debt forgiveness (PSI) can't be agreed; and we are heading for debt default. The iterative process which defines the political response on these occasions has been unsuccessful, but the time for reflection will come later. It's been a tumultuous two years. The immediate investment case now focuses on contagion and its containment.
Now we ask whether we're really better placed to handle a default - whatever form it takes? Orderly/disorderly, much of the corporate credit universe should come through relatively unscathed, but risk asset pricing will be impacted nonetheless. Technicals of sidelined cash and an opening New Year frenzy have got us here, boosted by ECB manipulation of peripheral risk (sovereign and bank) through the LTRO. However, nearing the end game of the Greek situation now sees us with a different reality. Spreads are moving wider, the periphery is suffering the most, while turnover and secondary market liquidity have fallen off a cliff as evidenced through widening bid-offer spreads. It’s not quite the November phenomenon, because then we had massive selling of French risk in particular, so as long as investors stay with it, the widening should be contained.
As ever, we’ll be fighting against the market’s mantra over the past two years, which has been to shoot first and ask questions later.
Not doom. This is history in the making. Fascinating stuff IMO.Nobody argues that everything's fine. We just don't all apply the same level of imminent doom. I don't know if you've noticed but austerity ain't working very well in Europe.
I answered your question directly in the RP thread. We aren't going to go back to the gold standard voluntarily. The market is repricing gold as the reserve currency. Iran, China, India, etc etc have started trading using their own local currencies or a commodity based exchange (gold). The USD is getting phased out as the global reserve currency. This will lead to significantly lower living standards for all Americans. Inflation will be rampant. The application will be through poverty for many.I find fascinating the Grand Canyon of silence when asked about application of ending the fed and returning to the gold standard.
I answered your question directly in the RP thread. We aren't going to go back to the gold standard voluntarily. The market is repricing gold as the reserve currency. Iran, China, India, etc etc have started trading using their own local currencies or a commodity based exchange (gold). The USD is getting phased out as the global reserve currency. This will lead to significantly lower living standards for all Americans. Inflation will be rampant. The application will be through poverty for many.
No one is going to sign a bill and go back to the gold standard. That's impossible. The market will dump the USD as it's reserve currency and find something stable (as it's already doing).
The FED will end themselves eventually.