Monday, June 27, 2016


As predicted, everything was down again today.  Portents of gloom and doom were all that could be heard and people appeared to be listening, which is remarkable because to doom and gloom mob were the same people predicting with absolute certainty that REMAIN would have a smashing victory and who drove every index in the world to the roof.  They were wrong then and I suspect they are wrong now but time will tell.

The really remarkable thing, however, is that the impending recession in Europe is being placed firmly on the doorstep of BREXIT.  Memo to geniuses all over:  THE EUROPEAN ECONOMY STINKS AND HAS STUNK FOR YEARS.  The dumb buggers are just running out of excuses as to why.  Sr. Draghi is desperately trying to hold things together and has been buying bonds of all shapes and sizes for a week now but one wonders how long this can continue?  Alan Greenspan had a rather interesting thing to say the other day (for a change) on the subject.  Quoth he..."The Federal Reserve has the United States behind it.  Who stands behind the ECB."  Well, the answer is simple of course; Germany.  And the reality is...up to a point, especially now that half the Volk are so mad at Angie that they could spit.  Which makes me ask the question; "Just who is dealing from a position of strength here, the EU or the Brits?"  Jumping up ugly on either side does no one any good and will do a lot of harm if one thinks about it, which Moody's didn't of course and immediately lowered the UK's rating to AA from AAA.  Think about it:  Moody's is saying that there is a one full rating point of negativity in whether Gilts will get paid out between Wednesday and Friday.  IT'S THEIR OWN*&&$^%# CURRENCY YOU MORONS!  But there you have it.  The embarrassment is so great and the vanity so destroyed that people are simply trying to "get even" by being dumber than they have already been.  It's joy to watch.

That's not to say that things are not going to deteriorate a bit more and if the economic numbers Over Here do not match expectations--and they are high--for the second quarter, things could really get ugly.  Of course the Brits will get the blame as God forbid the folks running things admit a few miscalculations.  The one mob that's coming up trumps is the Chinese.  No Bod E is paying attention but they are taking the Yuan down and down.  Why let a made-up crisis go to waste?  Even Congress is on holiday while the rest of Asia is getting pounded on the trade front--the part of Asia that actually likes us...kinda.  So we shall sit for the next few days and watch this until someone finally figures out that all of the real problems were there before the vote and begins to speak in terms of "oversold positions."  Don't ask them who it was that oversold things.  Thinking is not their strong point.

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