Tag Archives: Greece

Saving Europe

There are almost 40 billion euro reasons that Germany wants to replace Merkel. Since the 1992 Maastrich Treaty, the EU was a dream that portended great things – create a trading bloc and a currency. By 2002 the Euro was created with rules that capped GDP deficit spending to 103%. The rules were almost immediately broken and in the same […]

Understanding Recent Equity Market Mayhem: A Tidal Wave of Liquidity Creation Meets a Cavernous Trench of Debt

Over the last couple of weeks we have witnessed a series of conflicting reports from all over the media complex as to why equity markets are under pressure. Predictably, as soon as the markets recover a bit these same pundits come up with all sorts of reasons to cheer.  Needless to say these hysterical reports, bullish or bearish, are entirely […]

Equity Markets Drop Over 2%, Gold and The US$ rally Together

Yesterday, the equity markets sold off over 2% while the US$ and GOLD moved sharply higher. That’s right, you read correctly, Gold and the US$ moved up together. This action comes as no surprise to the partners of RCM. Over the last year or so, I have explained to anyone willing to listen that the real move higher in Gold […]

Greece Update: Bond Vigilantes Return, Credit Markets Elsewhere Recover, California Bonds in Demand?!

Time to check in with the Greek narrative. The hysteria has quieted down as new backroom deals to avert a meltdown are reported with some regularity.  However, the attempts to sweep Greece’s problems under the proverbial rug are occasionally sidetracked by a pack of rioters, or as is the case below, by the bond vigilantes. If rates continue to creep higher […]

Jim Rogers: Greece, Euro and the Speculator

Jim Rogers, the perennial purveyor of logic and reason, weighs in on Greece, the Euro and governements’ shameful attack on the “speculator” BE ADVISED: The video you are about the witness may cause temporary confusion mixed with bewilderment.  It may sound like Jim is speaking a language you cannot identify; rest assured the language is English.  However, he is using […]

Greek 10 Year Bond Deal Priced, Unique Perspective Into Sovereign CDS Hedge Farce

Greek funding update: Deal complete, interest acceptable, funding crisis averted for now…. New Greek €5 Billion 10 Year Bond Prices At 300 Over Midswaps, 326 bps Over 2020 Bund, Comes With 6.25% Coupon          Greek debt chief says bids for 10-year bond at EUR14 bln – DJ DJ reports the Greek government’s offering of 10-year bonds has attracted EUR14 billion […]

Lending Falls, Bad Loans Haunt Big Banks, Mass Layoffs Surge, Greece vs California

The equity markets dropped on average 1.5% Monday and this morning another 1.5% decline is underway.  I mentioned, in A Review of the RCM Investment Strategy, the defensive posture we at RCM have taken. I said, “We have deployed our assets in a manner we feel most appropriate for the environment we are experiencing.” The following news items should help illustrate what […]

Greek Fears Ebb, Gold Advances, Stimulus Demands Grow

Euro zone gives Greece 30 days to show good on deficit – Reuters The tsunami of Greek fear begins to ebb and like proverbial clockwork the US$ drops almost 1%, the equity markets rally over 1% and Gold runs back above the $1100 level up over 1.5%. By now, as readers of this blog, the financial market behavior described above […]

Greek Bailout Speculation: The Effect on The US$ and Gold

Turn off the TV and forget about the newspaper. If you want to understand the equity market gyrations of the last couple of weeks simply log on to an internet service like Briefing.com and watch for updates to the sovereign debt crisis.   Today’s trading is a perfect example of this new paradigm.  The Greek tragedy has turned into a farce […]

A Greek Tragedy of Shakespearian Proportion Continues to Unfold

After a week of credit market histrionics, Monday morning ushers in a moment of calm… Greek spreads ease; Portugal under pressure – WSJ WSJ reports European sovereign CDS spreads were generally tighter Monday, with the cost of insuring Greek and Spanish debt against default falling, although Portugal remained volatile with spreads widening. According to CMA DataVision, Greece’s five-year sovereign credit-default […]