Monday, September 5, 2011

Yield on 2-Year Greek Government Securities Climbs over 50%...

...for the first time ever.

Gold is over $1900, again. the Eurozone crisis intensifying as incoming ECB President Mario Draghi gives speech in Paris this morning saying, the ECB'scontroversial bond purchases were strictly temporary and:

cannot be used to circumvent the fundemental principle of budgetary discipline; in other words, it should not be taken for granted by member states.
But, Draghi also said that one reason why the eurozone debt crisis had escalated was “certainly the sharp worsening of the short-term outlook for growth in all advanced economies, including the euro area”. Will this mean he will start pumping money and the markets are over-reacting? That's the impression Mr. Insider, Nouriel Roubini gave, when he recently tweeted:

Pragmatic Draghi's first policy action, as new ECB President, will be to cut - not raise - the policy rate and have easier monetary policy.


  1. The PIIGS-F are not stupid enough to believe it was temporary...ECB will always bail them out....They all know this.

  2. The world economy seems to be spinning out of control and rushing to the cliff. The central planners are going to be there to make sure they push it over the edge. This is not only a disaster for the world economies, but it is also a recipe for world war. I don't believe for a second that the people supporting the "relatively" prosperous economies like in Germany feel good about bailing out Greek spendthrifts.

  3. The bloodbath in the euro markets today has been relegated to the back pages of the MSM. I suspect tomorrow it will spill to the markets here tomorrow.

    I'm amazed the charade has been kept up this long, but another 2008 crash in liquidity is coming, and now the Fed and CBs of the world are out of ammo- all they can do is print print print.

    Got gold, guns and grub? Cigarettes, liquor and other "luxuries" will be at a premium soon.

  4. Hey Bob, and the Greek 1yr yield is at 75% this morning...up from 3% in late 2009...