Tuesday, December 13, 2011

The Morning Call Second thoughts


Not much on which to comment. There were no economic stats reported; and there was little from the either the EU or US political classes. There were comments out of Europe on the schedule for changes in the fiscal union; but that was it. I think most of the pin action was a function of buyer’s remorse from the run up in stock prices Friday.

Bottom line: my opinion on the ‘new’ EU plan for solving its liquidity and solvency problems hasn’t changed--it is a weak ‘muddle through’ strategy and likely to be challenged by the bond vigilantes in the not too distance future.


The EU deal is unworkable (medium):
http://www.macrobusiness.com.au/2011/12/europes-suicide-pact/

More on the current state of the shadow banking world (medium):
http://www.zerohedge.com/news/scramble-us-safety-europe-imploded-offset-357-billion-plunge-q3-shadow-banking

The latest from Doug Kass (long):
http://www.thestreet.com/story/11342027/1/kass-the-downside.html

The latest from John Hussman (long):
http://hussmanfunds.com/wmc/wmc111212.htm

Six worries for 2012 (long):
http://www.zerohedge.com/news/six-tail-scenarios-deutsche-bank-are-watching-next-year