Monday, June 29, 2015

GREECE.....THE CARNAGE CONTINUES!


Investors' worst fears for Greece are slowly materializing as the country implements capital controls and is set to miss a debt payment on Tuesday. US stocks had their worst single day in months, and the S&P 500 is now negative for the year. European stock markets also cratered on Monday.

All major European stock markets tumbled; the big indexes in Germany, Spain, Italy, and France fell more than 4%.

S&P downgraded Greece's credit rating to CCC- from CCC, just two notches from D – default.

Greece Will Default To IMF Tomorrow, Government Official Says

The exchange between Greece and its creditors got increasingly belligerent, Estonian Prime Minister Taavi said that "Greece's debt would still remain outstanding and creditors would expect this money back." Greece just made it official that it would default to the IMF in just over 24 hours: "Greece won't pay IMF tranche due Tuesday, government official says"

The Athens Stock Exchange and banks in Greece will be closed all week as part of capital controls to contain the cash shortfall. There were long queues outside ATMs as people scrambled to withdraw their savings. The government has imposed a €60 limit on all withdrawals

Greek Contagion Uncontained: Portugal Bond Risk Spikes Most In Over 7 Years

Portuguese bond risk spiked a massive 49bps today. Early efforts to limit the contagion failed and Portuguese risk went out at its highs of the day and the biggest spike in risk since March 2008.

Europe's Stunning Denial Of Greek People's Right To Vote

We are watching the total collapse of Democracy and the birth of a new eraEconomic Totalitarianism from Arrogant people who are totally clueless beyond their own greed for power and money.

Greek Supermarkets Begin To Resemble Those Of Venezuela

Dow Tumbles To Overnight Lows, Down 650 Points From "Greece Is Rescued" Highs

STOCKS SLAMMED, DOW FALLS 350, S&P GOES RED FOR THE YEAR

Dow: 17,596.35, -350.33, (-1.95%)

S&P 500: 2,057.64, -43.85, (-2.09%)

Nasdaq: 4,958.47, -122.04, (-2.40%)


Inadvertent Warning From BlackRock - Get Your Money Out Of Mutual Funds ASAP

BlackRock Inc. is seeking government clearance to set up an internal program in which mutual funds that get hit with client redemptions could temporarily borrow money from sister funds that are flush with cash.  – Bloomberg News   TALK ABOUT BROKEN MARKETS AND CRIMINAL ACCOUNTING!

We may have been early on warning about leaving your savings in the financial system. It's okay to be too early getting your money out of the system but it's fatal to be just one second too late.  The gates are already in place in money market funds just waiting for the signal to be lowered.

BlackRock's filing with the SEC to enable "have cash" funds to lend to "heavy redemption" funds should send shivers down the spine of anyone with funds invested in any BlackRock fund.  In fact, it should horrifyanyone invested in any mutual fund. This is the signal that everyone should call up their mutual fund company, financial adviser or 401k administrator and get all of their the money out of any mutual fund.  Larry Fink has done everyone invested in any mutual fund a favor: he's unwittingly signaled that it's time to get out – now. Anyone who is aware of this and does not take action immediately is either a complete idiot or simply does not care about having their money taken from them by the criminal elite.

European Bank Risk Spikes Most In 5 Years To 19-Month Highs

Europe's Senior Financial credit index traded a stunning 20bps wider at the open to 97bps before giving a little back and holding at around 90bps. This is the biggest spike in European bank risk since May 2010... and is the highest level of risk since December 2013. Is faith in central bank omnipotence faltering?

French Economy In "Dire Straits", "Worse Than Anyone Can Imagine".

Moscovici who served as French finance minister until 2014 and then became European commissioner for Economic and Financial Affairs, Taxation and Customs, used some very colorful language, i.e., the French economic situation was "worse than anyone could imagine and drastic measures would have to be taken in the next two years".

IF GREECE DEFAULTS AND LEAVES EURO UNION, PORTUGAL, SPAIN, ITALY, AND FRANCE ARE VERY LIKELY TO DEFAULT AND LEAVE AS WELL, UNLESS OF COURSE THE WHOLE SHAM JUST COLLAPSES IN ON THEM FIRST! 

China Bear Market

Chinese stocks slumped into a bear market. The Shanghai Composite index closed over 3% lower, and is now down 22% from its June 12 high.

Puerto Rico Announces Bond Payment "Moratorium"

There's a separate debt crisis in Puerto Rico, where its government has admitted that it cannot keep paying down $72 billion of public-debt obligations. Fitch downgraded Puerto Rico's rating to CC from B on Monday afternoon. 

Having concluded last night that Puerto Rico debt is "unpayable," and that his government could not continue to borrow money to address budget deficits while asking its residents, already struggling with high rates of poverty and crime, to shoulder most of the burden through tax increases and pension cuts, Padilla confirmed tonight that: PUERTO RICO TO SEEK "NEGOTIATED MORATORIUM", 'YEARS' OF POSTPONEMENT IN DEBT PAYMENTS. Likening his state's situation to that of Detroit and New York City (though not Greece), Padilla concluded, the economic situation is "extremely difficult," which is odd because just a few years ago when they issued that bond - everything was awesome?


CAN YOU SAY MINSKY MOMENT
  1. A Minsky moment is a sudden major collapse of asset values which is part of the credit cycle or business cycle. Such moments occur because long periods of prosperity and increasing value of investments lead to increasing speculation using borrowed money.

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