Tuesday, June 21, 2011

Tricky Tuesday- The Day of the Vote Arrives, as Reshuffled Gov't Seeks Vote of Confidence; Yields in Greece, Spain Rise; On the Ground Report From Greece Says, "We Are Doomed"; Fitch Says Greece & U.S. Risk Default; Coca-Cola Says Goldman Sachs is Manipulating Commodity Prices, Has Proof; UK Debt to GDP Now a Staggering 151.4% as Gov't Borrows Another 17.4 Billion Pounds; Missouri River Flood Closes 100 Miles of Bridges; Renowned Doctor Says Millions to Die From Fukushima Fallout in Japan and U.S; Disaster Does Not Begin to Describe Flood in Mid-West; Fukushima Continues to Spiral Out of Control, as Situation Escalates; More Radioactive Hot Spots Detected in Tokyo; 6.46 microsierverts/hour Detected in Outskirts of Tokyo; Much More

Judgement Day has arrived for Greece, as the government votes on a historic issue about to set the nation into chaos either way the vote goes. On the one hand, a Vote of Confidence will allow Greece to continue receiving handouts bailouts (which will never be paid back) indefinitely but will send the populous into more riots and protests which could bring the nation to its knees. On the other hand, a Vote of No Confidence means Greece chooses to go the Icelandic way, accept no more bailouts, and get set free from the heavy bonds (no pun intended) of the EU - which will in turn set precedent for Ireland and Portugal to follow step in step with Greece. The moral hazard the EU created back in May of 2010 is coming full circle. As we said at the outset, either way the vote goes, the consequences will be devastating.

A reporter on the ground for Hawaii News Daily recently came to the conclusion about Greece, "we are doomed." Notice how the reporters tone changes in a matter of weeks from concern to hopelessness. Then again, from 4000+ miles away on the east coast of the U.S., we also determined that Greece was doomed simply by using basic math months ago. Now it's confirmed. It's also confirmed that by 2014, each and every EZ household will guarantee $2,100 of Greek debt. We ask again, what is the purpose of the EU?

Needless to say, the people don't want another bailout as tensions rise across Greece. The decision today could indeed change the course of history and set the nation into a different kind of spiral - the downward spiral of a collapsing society. That's a real reason to rally the markets - so is ratings agency Fitch saying Greece and the U.S. both face default risks. Ironically, two years ago in the financial blogosphere world, when "rogue" citizens made "outrageous" claims that the U.S. could see a debt downgrade or even face a possible default, overpaid talking heads on CNBS came out of the woodwork like cockroaches to discredit the blogging world. Boy, how the tables have turned.

Now, execs at Coca-Cola are claiming what "rogue" bloggers knew all along - Goldman Sachs is manipulating commodity prices. Well, duh! #winning! Of course they are and have been for a long time, but so have all of the other Too Big To Fail taxpayer funded banks which have been doing this to oil since the late 90's. Why, even "The Morgue" quietly admits to "renting out" a supertanker to store oil off the coast for investment purposes.

Speaking of investment purposes, the UK's debt to GDP just increased to 151.4% last month as it borrowed even more fiat money to keep the lights on. Of course, this would have made big news just a few years ago. Now, it's back page news. We're sure this debt to GDP ratio is completely sustainable and will be spun as very bullish for "the markets."

Speaking of completely sustainable, the completely discredited National Association of Realtors (NAR) is calling another housing bottom - for the 363rd time since 2005 - which also happens to be the same number of times they have used the phrase "there is no better time than right now, to buy a home," in the past 5 years. Three hundred sixty three also happens to be the number of insider sales of publicly listed home wreckers builders, in the past month alone. Are you paying attention?

Last week, The New York Times ran an article stating, at the current rate it would take 62 years to complete the backlog of housing on the market in New York State. It should be noted that this is inaccurate and misleading since the methodology used is inaccurate. Using the historical average versus the current data set, it would take 12+ years to run through the backlog - a number still very staggering to contemplate and devastating to home prices. Housing recovery? Green shoots? Jobless recovery? Please, the comedy show is over...
and the circus is just getting started. To begin, we will list a few bullish events that have occurred in the past 24 hours alone. See if you can determine the radioactive link that connects them. Then, check "the markets."

1) Tokyo area parents' radiation worries grow with discovery of local 'hotspots.' - Key point: Gov't calls for calm as radiation skyrockets in "safe zones."
2) Prestigious doctor: US nuclear 'Baby valley of death,' Millions to die. - Key point: Cover-up will lead to millions of deaths.
3) ‘It’s a sad day’ — Crest could be 10 feet higher than June 1. - Key point: Two nuclear power plants at risk of flooding and dozens of towns.
4) Radiation in Japan: Greenpeace Detected Cobalt-60 and High Radiation "Hot Spots" in Fukushima City in Fukushima. - Key point:   Fukushima City is in severe danger, 300k people exposed to radiation and Cobalt 60.
5) 6.46 microsieverts per hour detected in outskirts of Tokyo just a few meters away from children on playground. - Key point: Children exposed to 1 mSv per week, every week because gov't says it's safe zone.
6) Japan’s recovery from Fukushima to be measured in centuries, judging by Chernobyl. - Key point: Fukushima is a global catastrophe. 

1 comment:

  1. MSM isn't totally worthless. This AP article on US nuclear power is fear with anger thrown in for good measure.


    So what's your prediction time-wise of when we will see what Greece has now (real riots, imminent default)?

    CNBS = C? Nothing But shyte? (I realize it's playing off CNBC et. al.)