muses of the moment

August 8, 2011

Monday Mayhem

I will post Martin’s latest in a little while. Once again global markets are in chaos. Check in with zerohedge.com for the latest and greatest.

The S&P downgrade of the US debt has just added to the mayhem from last week. No good news out of Europe regarding the implosion of PIIGS’ debt.

Gold hits new high overnight, still over $1700 right now.

Halt in trading on several stocks in US and Europe to try to contain the speed of the downtrend.

But the 2 interesting bits of news for groovygirl:

  • Riots in London over austerity measures, 160 arrested. (update, 200 arrested)
  • Bank of America is imploding, must be taken over and divided now, if not sooner.

it is AIG which takes down the financial system for the second time after its lawsuit against BAC filed last night kills Bank of America.

Citi doesn’t look good either.

Groovygirl thought August was the “off-season” for the markets. There is no vacation in a global debt implosion. It’s still ugly out there. Groovygirl woke up this morning, so excited as gold was well over $1700. Then she got a laugh for the day watching the financial talking heads explain why the S&P has no idea what they are doing.

All the financial producers got their very clear marching orders yesterday from the powers that be. And they are spinning it anyway they can today. Not 24 months ago, they were blaming S&P for not downgrading mortgage securities when they should have. Now they are chastening them for downgrading US debt (when it is clearly unsustainable). If you are going to blame S&P for all the ills in the market, let’s try to be consistent about it. Shall we?

The funniest exchange was when they talked about the downgrade and how it was completely unfounded because the US can just print more money to pay its debt. This is, of course, a ridiculous statement, but it gets better. Then in the very next take, some expert talks about a falling dollar resulting from that move. And the MSM host says wait a minute, S&P downgraded the US debt , not the dollar. What the hell do they think is going to happen to the USdollar, if the only option is to print more money?

Does anyone actually listen to these people?

1 Comment »

  1. You are so right re: media spin machine. I’m keeping some excerpts for posterity. Ascribed premises and causal relationships are comical. Others are ominous. The Tottenham riots are explained away as random and race-based, but there is much more at stake. The most unnerving commentary is from dismissive or ignorant government officials. These people set policy?! We elect them?!

    “Democracy never promised you intelligent government, honest government, ethical government, or benevolent government. It promised you representative government.” – James P. Hogan

    Exciting, the volatility in Au this week. Bouncy bouncy whee. Mr. Gold warned years ago of these wide intraday swings. Greenspan is right about one thing: the credit downgrade seems to have been a catalyst for change in broad sentiment. We get through the latest liquidation, and a lot of new money is going to pour into the shares.

    Comment by Lore — August 9, 2011 @ 4:41 am


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