Don't cry for me...Argentina ~
...and from the mild market reaction; it doesn't look like anyone's crying for, or about Argentina either fwiw ?
Did everyone see the video of the hoardes of Argentine citizens in the streets banging their shoes against the facade of the closed down banks ?
Banks closed, ATM's closed, Currency Exchanges closed... all closed... and closed indefinitely.
1 Argentine Peso used to get you a US Dollar... now it takes 3 + Peso's to buy a US Dollar... a literal implosion of wealth & buying power.
The Great Fiat experimentis maximus isn't doing well in many corners of the globe fwiw...
...and this AINT small potatoes folks and it AINT going away and it DOES have BIG reprecussions in the grande scheme of things - quite contrary to media spin.
Japan's entire Banking System is a virtual fraud & physical gold buying has nearly quadrupled in Japan during the last year.
Hello ?
Meanwhile back in the good ole' USA we've just witnessed yet another Bear Market Rally fizzle as the economic recovery and corporate earnings turnaround remained MIA's...
But, are we worried ?
Hell no...we're buying new homes and knocking down the doors of WalMart, Best Buy, Bed, Bath & Beyond and Home Depot...
I don't know if its sheer denial, complete stupidity, or just that the media has done such a great job of spinning reality that this market can still maintain these valuation levels.
This has been the most reckless DEBT ORGY in modern history.
From the Fed, to the IPO-Mania Tech/Telecom/Internet Bubble, to the US Consumer... a complete drunken debt orgy...and that is all that is holding up this market.
We've got a derivatives implosion coming (when, not if...)... and the theme to that song will be:
"TOO BIG TO BAIL & TOO BIG TO BAIL"
The debt implosion took another pound of flesh today from WCOM...but, few are seeing the light... very few.
...maybe Greenspan is going to pull out all the stops and Fannie Mae will become bigger than the European Union and he'll use 3-4% Mortgage Rates to prime another round of Refi's and consumer spending to keep this Fiat-Ponzi Game alive another year, or two (vbg)...and remember we can all just keep endlessly re-financing into perpetutity - as "equity" is in the eye of the beholder (VBG) ~
(at least as long as the Real Estate Bubble remains intact)
tic - toc
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Here's a great article touching on the present valuations in this market:
gold-eagle.com
PS: ....it looks like the Chihuahua's took WCOM up the ass... will they every learn (vbg) ? |
