Tuesday, January 31, 2012
When know-it-alls know nothing
Don't know which I hate more- the stock market, those who invest in it or those who report on it. Tough call- all equally dreadful and in the case of investors and media, both worthy of a face scratching. The reasons we've stated too often to take time to repeat here. Suffice it to say, if you're not part of the 1%, you should be wanting to sharpen your claws as well...
But as much as I despise these entities, they also make me laugh at times. I tend to find it humorous when cocky cock know-it-alls think they have all the answers and can accurately predict economic events based on assumption that all will work out when push comes to shove, then are proven wrong.
Here's a headline from this morning:
Emerging Stocks Set for Biggest Monthly Gain in Three on Greece Optimism (Bloomberg) -- "Emerging-market stocks rose, with the benchmark index set for its largest monthly gain since October, after Greek Prime Minister Lucas Papademos said major progress has been made in debt-swap talks... he’s “strongly committed” to reaching a debt-swap accord with bondholders that is crucial to lowering Greece’s debt burden and freeing up another round of aid before the country faces a 14.5 billion-euro ($19 billion) bond payment on March 20."
And the market rejoiced and figuratively held hands as they danced around in the garden of eternal optimism and never-ending profit making... La La La...
Greek officials attack EU and IMF as debt talks stall (Guardian.UK) -- "Greek officials launched a vociferous behind the scenes attack on European Union and International Monetary Fund negotiators as talks in Athens over the country's mounting debts appeared to stall... a crisis meeting of party leaders would be called as early as Thursday to thrash out a response to an increasingly intransigent negotiating team sent by Brussels, which is demanding severe austerity measures before sanctioning a further €130bn (£109bn) of bailout funds...
"On the negotiations over the bailout funds, Greek MPs have objected to demands by the troika for further wage cuts and reductions in the minimum wage. The troika (European Union, International Monetary Fund & European Commonwealth Bank) doesn't appear to be willing to accept any concessions whatsoever on reducing the minimum wage and scrapping bonuses," said the government aide. "No political party is willing to move either, saying wage cuts are a red line they are simply not going to cross. You tell me how this is going to be resolved. We have no idea and we're very worried.""
A&G does not pretend to hide the fact we want this to fail and overall, desire Greece to do what it should have done two years ago... Default.
Investors and banks have not had to take any real financial hit or punishment since the global economic crisis began with Lehman Bros in Oct, 2008. That is now 39 months. Its about time they did.. Its about time the ultra-wealthy around the world who do nothing but create misery in populaces then financially profit from it, hemorrhage Severe losses and feel real pain.
Unfortunately the way this game has been played for over 3 years, there's always some magic trick or scheme or compromise pulled from thin air (or someone's ass) to keep all the plates spinning so no one at the top financial echelon ever feels any economic pain. So we're realistic to the probability that all will work itself out for the bankers and the Investors will continue to rejoice and 'dance'.
But Lord knows, we are not hoping for it.
And if Greece sells all of its soul to the banks, well there's always a ray of hope that the Portuguese wont.. or the Irish... or the Italians.. or the Spanish..