Monday, September 12, 2011

ECB and Bond Buying….


ECB will buy bonds and save Europe from going bust, or? As The Trader has argued, the Big Elephants in the room, are still “under control”. The crisis spreading to Spain with unemployment at +20%, youth unemployment at close to 50%, “hidden” local debt, further declines in property prices (and transactions) will be much greater than the Greek mess. In order to understand the full scope of the Spanish contagion, one needs to live in Spain, in order to understand the mentality of NEVER taking a Stop Loss.

Italy on the other hand, with Berlusconi guiding the country in these stormy waters, will end in a total disaster. Note, Italy is Spain, Ireland and Portugal combined….

ECB coming out to rescue? Sure, but they lack the fire power, or will Ben join the party? We clearly see what happened in Ireland and Portugal. Spain and Italy coming up, or is this time different? We say no, it never is different.


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