Financial topics

[Trevor]

I'm sure at least on some level, people realize that we can't continue down this road. However, changing is a difficult decision and at this stage in the game, we're still looking for the easy ones. I don't expect attitudes to change until countries start defaulting.

[Trevor]

Current Bond Yields:

Belgium 2-year bonds: 2.4%
Belgium 10-year bonds 4.23%

France 2-year bonds .97%
France 10-year bonds 3.24%

Greece 2-year bonds: 136.4%
Greece 10-year bonds: 35.66&

Ireland 2-year bonds: 8.21%
Ireland 10-year bonds: 8.21%

Italy 2-year bonds: 5%
Italy 10-year bonds: 7.07%

Portugal 2-year bonds: 16.08%
Portugal 10-year bonds: 13.54%

Spain 2 year-bonds: 3.32%
Spain 10-year bonds: 5.11%

United States 2-year bonds: .24%
United States 10-year bonds: 1.88%

[Higgenbotham]

I'm sure at least on some level, people realize that we can't continue down this road. However, changing is a difficult decision and at this stage in the game, we're still looking for the easy ones. I don't expect attitudes to change until countries start defaulting.

The growing size of the shadow inventory indicates how this will happen. As the shadow inventory continues to grow, at some point, someone will say or do something that triggers a panic. This will cause prices to fall very quickly to 1990 levels.

http://www.generationaldynamics.com/cgi ... sing091221

I agree with John's statement on this. This problem is large in dollar terms, larger than the small European sovereigns with the inverted yields at present. I told Lily in March that we were not out of the "business as usual" phase quite yet, but now it seems "we are there". Could be today or 6 months from now but the conditions exist for this tinderbox to go up in flames.

[Trevor]

If it was confined to a couple of countries, we'd have a hard time of it, but we'd survive. However, everyone is collapsing; some are just further on the road to doom than others.

Personally, I think people are now intentionally deluding themselves, closing their eyes while hoping that some miracle comes along to save them.

[Higgenbotham]

If it was confined to a couple of countries, we'd have a hard time of it, but we'd survive. However, everyone is collapsing; some are just further on the road to doom than others.

Personally, I think people are now intentionally deluding themselves, closing their eyes while hoping that some miracle comes along to save them.

It's been put off too long to separate anything out. There are "multiple converging events" and many dominos are likely to roll simultaneously. The housing problem should have been cleaned up 3.5 years ago, the banks should have been cleaned up 2.5 years ago and Greece should have been cleaned up 1.5 years ago. Now the whole system is infected.

[Trevor]

In trying to delay, they've ensured that the problems are going to be all the worse when it finally happens. I expect an official Greek default within 3-4 months. They are hanging on by their fingernails at this point. It might start out small, but eventually, it will steamroll everyone.

In addition, we won't be considered as safe as we currently are, particularly when our national debt climbs to 16 trillion and beyond.

[aedens]

As I was reminded, No politician is any longer interested in the question.

[Trevor]

The public's also going to have to realize that there are no easy decisions in this mess, but we're not at that point yet. I'm beginning to think the stock market crash, when it comes, will be very rapid instead of gradual.

[aedens]

The public's also going to have to realize that there are no easy decisions in this mess, but we're not at that point yet. I'm beginning to think the stock market crash, when it comes, will be very rapid instead of gradual.

Keynes Veil Trev
http://www.graduateinstitute.ch/webdav/ ... anking.pdf

[aedens]

International Monetary Policy Committee composed of representatives of major central banks that will report regularly .