Thursday, August 18, 2011

In due time

Panic of 1873

6:56 am (Hawaii) How much of this has to do with that? Chavez's insistence on physical delivery could, as Brother Turd Ferguson and Tyler Durden scribe, be the biggest domino to fall in the handful of PM vaults that exist from Europe to the US.

In a room full of greedy pigs, it's the bully that gets his way while the others cower. But they're still all pigs. SocGen is taking a major hit (-11.1%) after riding higher in recent sessions with the rest of the banking sector. Reggie Middleton's analysis goes way over my head, but the one fact I gathered from his work is that SocGen and many Euro bigbanks are f**ked. Will this lead to bank runs in Europe and then the US? Let's just say the picture doesn't look pretty whether people line up at banks or not. So many jobless, so much tension ... it explains to an extent why the Fed is quick to put the spotlight on Europe while Chavez is playing one of his trump cards.

Update 7:22 am (Hawaii) Got interrupted by a phone call and FAZ is pushing above 66.00. Trying to at least. This was available at 55-59 just a few days ago. The near term is chaos. The long term is 100. It went to from 44 to 81 to 58 to 76 to 55 or so. All in a few weeks. Someone got some FAZ at 45 and has ignored it since then while on vacation. That's one way to handle the turbulence.

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