When know-it-alls know nothing

~ "I'm tellin' ya.. you gotta' be in the market!  Buy lotta stocks.. ya Gotta!"

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...

But then later in afternoon...

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.

 "Meowww... hate investors & banks sooo much.. Meeeowww!! Rrrr Rrrrr"

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..

Never-Ending Greek Debt Cock (a-doodle) Tease

The Greek government is sure damned determined to stay in the Eurozone vs going back to the drachma.  A poll recently showed about 80% of the Grecian people were brainwashed to want the same thing even though they're suffering horrible austerity and their stubbornness to refer to outright default two years ago has turned a regional nuisance into a global crisis.

If you turn on mainstream financial news this weekend, you will probably hear or read a crisis has been averted because, "Greece and its private creditors said on Saturday they were piecing together the final elements of a debt swap and expected to have a deal ready next week, essential for sealing a new bailout and avoiding an uncontrolled default. (Reuters)

This is pretty much akin to watching a dying man on the street and police waving their arms and saying, "Move along folks.. nothing to see.. everything's under control"

But see, here's the thing.. unless something major and drastic changes, Greece will default in late March.  The banks and financiers are already coming up with clever terms like "orderly default" and "strategic default"--  sounds so much more uplifting-- implies the ones who will suffer from the default are the ones controlling it.

"Move along folks.. financial crisis averted.. everything's under control"

In simple understandable terms, imagine you bring in a salary of $50k with zero in savings, your yearly expenditures no matter how much you slash, comes to $75k, putting you in the hole by an additional 50% per year and you already owe creditors $500k.

That is Greece.

And then this doozy:  "Greece must surrender control of its budget policy to outside institutions if it cannot implement reforms attached to euro zone rescue measures, the German economy minister was quoted as saying on Sunday." (Reuters)

Can you see Greece willingly give up its economic budgetary sovereignty to another nation?  To Germany-- a nation who once took over Greece during WWII and who the Grecian people still have bitterness toward?!!

Any "agreement" you hear with bondholders is pure BS, much like if a bill collector calls and you promise "check is in the mail" when you barely have enough money to pay for the stamp on the envelope. Whatever it takes to stop the pestering phone calls for a couple days.. whatever it takes~

 Greece can't get its budget under control, can't pay its creditors back even 5% what is owed, really needs 145billion Euro by March, not the 130b reported by others, and oh yes... will need even More money by May of this year.

And let's not even talk about the rest of the Eurozone..

And so the financial cock (a-doodle) tease goes on and on..

Can't have oxymorons without 'morons'

~ Greek drachma coins

The know-nothings who run the global financial world, and by extension, run and own the financial media, have recently been a wee bit more honest and forthright about Greece's economic situation than any time in the past few years.

Many are openly acknowledging that Greece will default.  But there's a catch isn't there?  Always seems to be one...

The new cool, kitchy-catchy catchphrase to be sweeping the globe on the Top 40 'Bullshit Double-Speak Phrases of the Week Countdown' IS ~drum roll~ :

'Orderly Default'

Of course this is an oxymoron, much like 'military intelligence' or 'sexy pig'.  And if this "orderly" destruction of a nation's economy was so easy or even possible, why wasn't it done two years ago before hundreds of billions of euros were dumped down Greece's drain and its corrupt leaders were so passionately determined to not go back to the drachma and sovereign autonomy?

But for laughs, here's how the scum who control global finance explain it:  Greece's creditors, bondholders, etc allow on its own for Greece to 'default' by taking very large haircuts and supposedly because this is all done "voluntarily", it will not trigger what the European banks and EU fears the most-  Credit Default Swaps

~ 1000 drachma note

CDS are a form of insurance bondholders take out when their investments pose a risk of not being paid back.  The insurance is offered and sold freely from institution to institution, but no one really expects there to be a day they'd have to be paid back.

Think of it like this- Let's say insurance companies sell tons of hurricane coverage policies for NYC and New England residents, never expecting a True Cat. 5 hurricane to directly hit.  So buying the policy is no biggie... the insurance company is happy to take your money.  But if the unforeseen becomes reality, the insurance companies can never cover even a portion of the total damage it would bring.

CDS are no different with one exception-  unlike acts of God, banks and other financials can easily manipulate economics and finance to suit their purposes.

Greece had to be propped up all this time to protect them, not the Greeks.   Now that the realization is upon everyone that Greece will default, the goal is to now perpetrate the investor 'confidence' con -- convince credit rating agencies, banks, and all vested parties the default is 'orderly' and essentially contained.

Will they succeed?  Probably.. unfortunately..   but Hopefully not.

Someone somewhere in global finance and investing-land Must take severe pain and hardship.  Someone somewhere must lose their shirt...

Sink or swim on your own, and if you drown, no one picks you up...  Could have sworn that was what Adam Smith Capitalism was all about...

~ Ancient drachma coins set as cufflinks

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PS.. Didn't feel like writing a new post when a couple sentences suffice..

Reuters headline today:  'IMF seeks $600 Billion more in funds'

Because the US runs/controls the IMF they supply 17.4% of its budget

17.4% of $600 billion is $104.4 billion.. that's how much More money in US taxpayer dollars is requested/needed to bailout Europe's national rots

It Never ends does it?   Perhaps economic capitulation and financial "reset" isn't such a terrible option in comparison..