Today's note

Not a surprise, we again had the Nothern Rock tune played in Paris as many have declared to be unhappy with the British decision.... It shouldn't have come as a surprise, nobody will dump on the British taxpayer the crasy lending and borrowing made with a guilty "laissez faire", not to say irresponsible, throughout the EU. Except Germany, Nerderland and Flanders(why did it came out as Flemish, an e by the way?) public finances are a mess, spending no limit the rule and frankly, the Germans are gonna go crasy if they end up paying more taxes to repay debts made by some that have constantly refuse to take on the efforts the Germans made to stay on the right track.

Credit Markets : Frozen? Why? CNBC has published the banking sector exposure to the PIIGs sovereign debts

1. Portugal
   Banking Sector Asset Exposure: 14.08% - Total PIIGS Exposure: $64.54 billion
2. Ireland
   Banking Sector Asset Exposure: 13.5% - Total PIIGS Exposure: $90.378 billion
3. France
   Banking Sector Asset Exposure: 10.4% - Total PIIGS Exposure: $911.32 billion

For more www.cnbc.com

Speculator's do not target Portugal or anybody else for that matter. Now add Portugal's sovereign debt problem with its banking sector exposure to other PIIGs sovereign debts and you get the recipe for some legitimate doubts? Who was at the switch for years?

The Chatter...

“Just as counterparties were wary of dealing with other banks while losses from US subprime bonds were unknown in 2007 and 2008, the same is again affecting interbank lending markets now as investors fear their counterparties may be heavily exposed to to Greek or Portuguese government bonds,”

More here : ? (could?)

First, the European Central Bank could restart its auctions of unlimited one-year euro liquidity. Second, the ECB and the Federal Reserve could reopen their dollar swap lines so European banks could access dollars through the ECB again. Third, the ECB could buy eurozone government debt, effectively undertaking quantitative easing.

Will?

Let's be honest...

If you issue bonds and need credit markets, can you find investors that CAN AFFORD to go long with no covering?

Answer :
Can you have a market of "covering investors going long" without counterparts?
Answer :

Can you guess the bad name counterparts may get if by playing the game investors going long needed in the first place to accept to take on that risk they score big pushing a bit the game?

Answer;

Recommended reading

http://www.cnbc.com/id/37025018
Fighting the "Wolfppack" :(?)
EU Seeks Mechanism to Contain Greek Debt Crisis
EU Races to Ready Emergency Fund, Fight Off `Wolfpack' Before Asia Opens
Egypt Stocks Fall Most in Five Months, Lead Arab Markets on Debt Concerns
?? need access? NEW: Fadel Gheit, Oil Analyst Fair Value Barrel of OIL $30.00, it follows his previous review when he priced it $ 60 http://www.cnbc.com/id/36918577 anyone to confirm?

47 of the biggest EU commercial banks have asked friday for some quantitative easing, so far...

Referring to Germany official Angela Merkel words of what is a strong currency to a thriving economy, the answer is no....??

So far, the News

The Chatter, CNBC, reports, says HF doubling down and shorting big.

Well, I woundn't trust any number of scientist or not asking someone to be silenced, I'd immediately conclude their position must very weak to feel that kinf of need...... If a few hundreds can't stand the critics of one, facts tell me, short them... and big, they'll go down.

Israeli Stocks Fall, Bonds Gain on Europe Debt Crisis Concerns

Deficits an old story that has very little to do with the 2008 turnmoil....

“We had the subprime debacle in the U.S. Does Europe relive that in terms of the massive leveraging they’ve done to keep the social model running? Because then it’s a worry of not 110 billion euros for Greece, but it’s potentially a project that could go up over 1 trillion euros or more.”

Let's be honest about facts.

Today

New >>(correct)>Credit Buckles in `Whiff of 2008' as ECB Lets Athens Burn: Credit Markets

Euro Will Collapse Like Tower of Babel: Economist

1mn to smile ;-)

Crackdown on "speculators".... If only they have had the same strong rethoric and readiness to fight their deficits... I guess they wouldn't be dealing with speculators, would they....???

I bet Goldman is involved...!
France to Use Intelligence Agency in Rumour Crackdown

Back to Business
CDSs Point to 55% Chance of Greek Default

What you can't afford to miss

Stock Selloff May Have Been Triggered by a Trader Error

US Banks Heavily Exposed to Europe Debt Woes: Bove

Must read >> Greek Debt Crisis May Be 'Going Global': El-Erian

Conservatives Fall Short of Majority in UK Elections, Exit Polls Show (Click for Story)

Crisis Could Hurt US: Fed
Also
Trichet Resists Calls to Consider Purchasing Bonds, Urges Cuts in Deficits
Though many call for
EU Debt Crisis: TARP for Europe Needed to Stop the Debt Crisis - CNBC
(Good night to you too)
Citigroup Finds `No Evidence' Bank Was Involved in Erroneous Stock Trades

Libor-OIS Spread Widening Suggests Money-Market Collateral Concern Rising

LONDON (MarketWatch) -- Spain's successful auction of a 5-year bond helped nudge the euro off 14-month lows. Spain sold 2.23 billion euros of five-year notes with a bid-to-cover ratio of 2.35. The maximum yield was 3.58%.
But
Spain Pays Highest Yield Since 2008 in Five-Year Bond Auction
And
But the spread of investor jitters in the past 24 hours, affecting markets as distant as yen swaps in Tokyo, suggests market conditions could deteriorate as rapidly as they did during the global financial crisis of 2007-2009.
Stay tuned.
European and UK Government Debt Auction Calendar

Today's note

Big Gov, Big spending, Big debt, three died to start with.

Strange to see how a nation is sometime just a word. I had think Greece going through the worse crisis since world war 2 would rally and do whatever it takes to make sure the situation woudn't get out of hand even if requesting that the effort be fairly shared among the population and those responsible for the mess be sent home but didn't expect them to fight one another up to killing some. I like to think it wouldn't happen home. "We rise or fall together as one nation" I guess it's an American thing. Today reading many articles I found this comment, "Greeks have ordered some kind of social freebies, hope they enjoyed it, the bill is now on the table", thought harsh cause most probaly didn't know. Most EU govs don't give their citizens the education and the sense through that education of being responsible making personal choice. As a system they quite enjoy to be honest on both sides to entertain a kind of illusion there is a state (abstract thing) that the gov is in charge of, on the other side, the people asking for freebies with the gov playin the referree... how it is financed is less important or not important at all, at least was until the bill kicks in.

Now why Greek officials are unable to rally the nation after may be some very difficult and controversial explaining, which is understandable due to the circumstances, remains to me a mystery. Have they done townhall meetings to explain and offer a path out?

Severe financial storm for Europe

Europe's Undervalued, but I'm Not Buying: Barton Biggs

EU, Currency Are Headed for Collapse: Gartman

Get Out of Stocks and Into Bonds: Portfolio Manager

A must read >>>>Busch: Expect the Worst

Portugal May Be Cut by Moody’s as Contagion Spreads

Stocks, Euro Slide on Debt Concern; MSCI World Falls (Correct)

That's all folks for now - The show must go on - I'll be back with more.

Hum....Kerviel says he was urged to flee

...?

Faisal Shahzad: Time Square Bomber, Islamic Terrorist (Shahzad Faisal)

The prayers for the "Time Square Bomber" to be "a white christian right wing terrorist tea party inspired" haven't been heard.... it seems..... ....? ....? ...???? ...????????

The guy is now an American of "Pakistani descent", no kidding?????? and you'll notice that is banned the mention of the "holy war" motives of the suspect..????

I just wonder why there are so many people eager to strenghen the idea there is a "gov mainstream media plot" against the People...? Who do they think benefit from "let's not mention this, let's not say that? Why letting anyone think the Public is a stupid bench of excited folks unable to control themselves ready to kill people? This is ridiculous.

So, am I expected to still trust the very competent people in charge but saw nothing

for the past 12 years....?
I mean really? Greece has had on average an inflation of 3.4% for the past 12 years when Germany had an inflation of 1.3% over the same period?
Has the Greek debt finance anything more than inflation?
Enjoy, http://prudentinvestor.blogspot.com/2009/06/one-eurozone-but-many-sets-of-growth.html
Is it not a legit thing to ask, what was exactly doin the out of proportion (not just banks) paid bureaucracy in Brussels when reading the numbers? Sleepin at the switch or somethin? Oh yeah I got it, Goldman the pill dealer gave some for free and everybody went to the party...?
If the Greek people decides from now on to have their say heard about what does the Gov with the money and refuse any more big spending, join the crowd and go (Sorry Mr President but can't help it, nothing mean) for some Greek tea parties, you guys never had one in the passed?

If your gov has plans to contract debts whatever the good reasons it has, keep in mind you're the debtor and you will pay soon or later. Govs don't make any money, they're a cost you carry. If you don't make sure every promise they make is financed, be sure they please you with borrowed money you'll repay, you just don't know it yet....

The truth : Right now, nobody can afford a Greek bailout... the last country and I shall say the only one in the eurozone to be in line with its signature of international treaties is Germany before anymore debts....

Marc Faber, "Gov will bankrupt us".... any doubts... ask the Greeks.

And,... the beat goes on! Let's be straight, Three Banks Most at Risk from Greecer everyone to get the story right

1. Three Banks Most at Risk from Greece


2. Beware the 3 Recovery 'Derailers'


3. Roubini Says Rising Sovereign Debt Leads to Defaults


4. I sign off with John Pierpoint Morgan's historical quote when asked by congress in 1907 what money actually is.
   "Gold is money. Everything else is credit."

Gold is the money of kings.

Silver is the money of merchants.

Barter is the money of peasants.

Debt is the money of slaves.