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Thursday, 31 May 2012

Eighty percent of Greeks want both: euro; and new debt deal

Eighty percent of the Greek population want both:  to remain in the euro currency zone;  and to amend the debt agreement with creditors, according to a recent poll prior to the June 17 election.

US real estate market destroyed (reprint)

Buyers of foreclosed US property may not own that property, according to Dr Lan T Pham in Capital Account's interview.  Doubt is cast upon which collateral exactly backs mortgaged back securities.  The important aspects of this issue have not been reported fully in the mainstream press, despite awareness.

Monday, 28 May 2012

Run against Greece gathers pace

A French backed stock broker will now only execute sell orders on the Greek market;  and the olive oil price has been driven down.

Friday, 25 May 2012

Renewable electricity can be stored in Norway

Norway's proposal to store electricity solves one of the biggest electrical engineering problems of renewable energy sources:  the unsteadiness of power supply.

Thursday, 24 May 2012

Euro exchange rate observation

The euro currency exchange rate is approximately US$1.25, which remains greater than the 2010 low near US$1.19, despite the apparently worst ever European currency disarray and potential risk.  See the chart below.

Should Germany guarantee Greek debt?

The German Central Bank has issued long term bonds with a zero percent coupon rate.  Lenders are effectively paying to lend to Germany, again.  This reflects the real market:  investors are reallocating their funds away from risk to safer, non yielding assets.

Wednesday, 23 May 2012

Greeks tempted by ongoing German financial support without reform

"With austerity, Greece will need a third bail-out"- Tsipras. Without austerity, Greece will need a third bail-out. See Der Spiegel's article "Tsipras says Berlin must back down on austerity" and the earlier posting "third Greek bail-out".  Tsipras' position echoes that foreshadowed in "Greece likely to receive permanent bail-out, relieved of all obligations for financial prudence".

Wednesday, 16 May 2012

Derivatives valuations beyond human comprehension

The influence of large financial institutions over derivatives pricing has loosened the relationship between derivatives prices, their underlying assets, and their mathematical models, according to Chris Sheridan.  JP Morgan's recent loss suggests that theoretical pricing models of derivatives may no longer work properly.

German gold reserves audit

Der Spiegel reports of concerns about checking Germany's gold holdings in "Germans fret about their foreign gold reserves".

Tuesday, 15 May 2012

Greek financial reforms not implemented

Gikas Hardouvelis, the chief adviser to transitional Prime Minister Lucas Papademos, concludes that almost none of the government's reform efforts have been a success.

Saturday, 12 May 2012

US Fed breeding bigger, more dangerous whales

JP Morgan's derivatives loss amplifies deep concerns about the financial safety of the big banks.  Financial backstops designed to protect those banks privileged to be "too big to fail", along with very low interest rates and now declining profits, create incentives for those big banks to further increase their gigantic financial risks.

Money printing rekindles German fear

"Printing money can't be an answer" to solving the problems of European economic growth, according to German foreign minister Guido Westerwelle.

Wednesday, 9 May 2012

Gold breaks down through long term uptrend

The chart below shows that the gold price has broken down through the long term uptrend, answering last month's question in "Gold price test".

Saturday, 5 May 2012

Penson brokerage warning

It might be prudent to repatriate or otherwise secure any funds which are not required for immediate trading.  See Penson's price chart below, and Ann Barnhardt's warning. 

Tuesday, 1 May 2012

Gold manipulation to "kill the financial messenger"

I found this interview "GATA's Bill Murphy exposes how the gold cartel is bombing the market for precious metals" interesting.  GATA's* Bill Murphy claims that certain gold ETFs (exchange traded funds) are the major shorts in the gold market, including GLD whose gold custodian is HSBC.