Last week I went to Wall-mart to buy enough computer paper to print out my taxes. This week I have a cold. That’s contagion. I went back to Wall-mart and bought some cough drops and left a bunch of contagious virus on the shopping cart for someone else, I’ve never met. That’s contagion.
World trade, you have to love it, it’s been rammed down our capitalistic throats for a couple hundred years as a necessary corollary to capital, goods and the mobility of labor, mostly out of our country, to a more friendly, cheaper, area of the world. So, if you harbor any ideas that the Greek debt crisis can’t touch you, please don’t touch any shopping carts and don’t shop at Wall-mart or any place else for that matter.
There are a lot of rumors floating around about gold right now and even if one were somewhat true I would not be in either the bond or equity market right now. They are A. Missing gold. B. Delivery of physical gold and C. A new international currency based on gold. These rumors had a tangible effect on the market yesterday because they were from credible sources.
I’ve doubled up on the VXX to hedge that part of my portfolio I can’t liquidate. If we break 12,000 or 1200 it will be a miracle, not because our fantasy market isn’t capable of getting there and much higher, but because external factors will cause GS to stop trading up the market.
I love it when Hedge Fund managers talk trash like this. Huge, Martin (in jail), a few guys at PIMCO and John Taylor of FX concepts. Give um hell John:
“Global monetary and macro economics have become more like the literary nonsense in Alice in Wonderland. It is great fun to read, but unfortunately for all of us, we are living through this economic house of mirrors, which is more and more rapidly spinning out of control. The situation in Greece is the most poignant example at the moment. Although there do not seem to be more than 100 people in all of New York City that have any interest or concept of what is going on in Greece and within the euro, the events of the next few months will have a tremendous impact on the world. If the political actors in this tragedy-comedy play their roles well – staving off collapse – our suffering will be worse. There is no way to win. The powerful elite political forces, and their co-opted market allies, involved in this fanciful decision-making can not control the economic reality that will eventually destroy Greece and Europe. Hopefully, they will be forced to give up before the damage is too severe. The quicker the crisis comes, the better for the world, but almost everyone is working in the other direction, stretching it out to inflict maximum pain. At this point, the best way out for Greece is very clear. Greece should pull out of the euro this weekend, issue new drachma notes as soon as possible, and let the lawyers clean up the mess. If I were running Portugal, Italy, or Spain I would do the same thing – the first one out is the winner.”