STOCK MARKET WATCH - Monday, 6 February 2012

[Demeter]

15. Everything is fine

http://www.golemxiv.co.uk/2012/01/everything-is-fine/

NOT

...Greece is heading for a blow out with its bond holders. Greece wants/has to have it’s private bond holders accept at least a 50% ‘haircut’ on what they are owed. The bond holders have said ‘No!’ to accepting their share of the losses. The ECB has come clean that it will not accept a loss on the Greek bonds it now holds either. If it did so it would put a large dent in its ability to claim all is fine with the ECB and it can keep lending and printing on any scale for any length of time.

Portugal is now openly muttering about how it needs another 30B or so bail out. Ireland is looking to run out of its own cash in about 6 weeks at which point it will have to once again tap in to its credit line from the ECB and IMF.

Which brings up the ECB and its now fairly clear plans to issue/print another 650B to 1T in new Euro debt in what it calls its LTRO (Longer Term Refinancing Operations). More on this later.

And not to be out-done in competitive printing and currency manipulation Mr Bernanke just announced that the Fed would be buying up more bonds again in what the markets are already calling QE 3...

AND THE HITS JUST KEEP ON COMING!