Space Jockey - 6/14/2012
Here's what we're following this morning:
The French and the Greeks are in a race for the biggest bank run - Reggie Middleton | The risk isn't necessarily with bank runs; the risk in today's banking system resides in the run on counterparties. As counterparties pull liquidity, covenants are tripped that deman additional capital or collateral...that probably isn't available.
Here's a new term for today: "loitering munitions" - Counterpunch | What works overseas will soon work domestically. And with pricing quotes being requested for up to 20,000 units, you can see how frequent the future use will be.
Germany's constitutional conundrum - New Economic Perspectives | Should Greece, Ireland, Italy, Portugal, and Spain go bankrupt and repay nothing, Germany would lose $899 billion; if the euro fails, Germany would lose over 40% of its GDP. If there isn't a legal way to prop up the countries right now, there soon will be.
Italy trembling on the brink - Testosterone Pit | The third largest country in the Eurozone is too big to be bailed-out by the Eurozone itself. How do you feel about helping to foot the bill?
Merkel warns of limited German resources - Financial Times | "Germany's resources are not unlimited." No, but that doesn't say anything about having countries outside the Eurozone (coughFederalReserveSwapLinescough) come to the front for aid.
Leaked documents reveal Obama's intentions to give new powers to multi-national corporations - Huffington Post | All hail the corporate-fascist state.
A sickening display in the Senate Banking Committee - Dangerous Minds | I have posted from this site before, usually for non-financial, non-market issues. The fact that THIS type of article has made its way into THIS type of site is another testament to the sea change we're seeing in our country, now. *WARNING* The language gets a bit blue, but you'll understand the scorn and derision that more and more of us are feeling for our so-called "leaders."
Why nations fail - Jesse's Cafe Americain | The banks must be restrained. The financial system must be reformed. Balance must be restored to the economy. Until those things happen, there can be no sustained growth or recovery.
Spain's health ministry backtracks on healthcare entitlement restrictions - El Pais | Replace "Spain" with "US" and you can see why and how there will never be cut-backs on domestic welfare programs of any sort.
Personal photo postcards from the early 1900s - House of Mirth via Boing Boing | Take that, Instagram!