Indecision

Indecision

Who’s Next?

venus

When the US housing market was starting to fall apart Ben Bernanke made a now rather famous statement because he was so wrong.  Regarding the situation he said on March 28, 2007 “At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained.”

On which planet of the solar system it was contained, he did not mention.

When Benron realized he didn’t know any more than anyone else, he is human after all, the man turned himself into Chairman MaoNanke – regulating all financial assets as he sees fit. 

And this is where I think the nannycrat fools are in Europe.  They make countless statements that all is well…their problems are “contained”…and yet the contagion spreads like a metastasized cancer.  If it’s contained, how did Cyprus fall?  How did its banks pass the so-called stress tests?  How?  Because they are all liars.

And that then begs the question: Who is next?

The answer may be Slovenia.  Its leaders are exclaiming “Slovenia won’t need aid. We can do this on our own.”  And when they say that, given that all politicians across the planet are pathological liars, they must be in big trouble.

But the old players are back in the spotlight as well.  The Greek stock market has plunged 20%, putting it in bear market territory, in one month.  Greek bonds are also at 3-month lows. 

Speaking of liars, Spain didn’t quite tell the whole truth about its budget deficit.  From Bloomberg: “The Spanish government said its 2012 budget deficit will be bigger than first estimated after the European Union requested changes in how tax claims are computed. The budget shortfall excluding aid to the banking sector was 6.98 percent of gross domestic product last year, more than the 6.74 percent predicted on Feb. 28, Deputy Budget Minister Marta Fernandez Curras told reporters in Madrid today. That compares with 8.96 percent in 2011.” And “Spain is seeking an extension from other euro-region governments to reorder its public finances as Prime Minister Mariano Rajoy says output may shrink more in 2013 than the 0.5 percent he initially predicted. That’s a third of the contraction forecast by the International Monetary Fund. Spain is due to submit budget plans through 2014 to the European Commission next month.”

Expect more flare-ups.

Trade well and follow the trend, not the perma-bull OR perma-bear "experts."

Best Trades to you,

Larry Levin

Founder & President- Trading Advantage

TradingAdvantage.com