The world is saved

[hardnox604008]

Cavalry just rode over the hill!

http://www.zerohedge.com/news/global-liquidity-bailout-arrives-ecb-announces-emergency-liquidity-pro...

Question is, is it the Little Bighorn or Wounded Knee.

My guess is both- they're going to bayonet some squaws and papooses, then they're going to get theirs, later.

[Mizzou_Tiger]

it was going to happen..........we are all in this together........default needed to happen in a shock and aw fashion to get it thru and not create long term massive panic........didn't happen soon enough..........

[hardnox604008]

gimme another P, gimme a T. What's it spell?   PPT.

I wouldn't count 'em out because they are all in and desperate but if these arse bandits can't get the stock indices over yesterday's highs (that flopped by half in the last half hour) they got a problem.

I never bet against da boyz in the short term, you gotta let 'em use their ammo up first. However the duration of the effect from ordinance seems to be declining.

 I am a fascinated observer.

PS. economic data, US and global, contines to be rather fetid.

[sonoma72]

Does anyone ever answer the basic question, are they broke or not?   What changed?   Their ability to repay?   IMO these finance guys are hilarious... either these countries are broke or they are not, and in order to "repay" they will have to go through massive austerity or they won't, and massive austerity equals...     Perhaps you watched kyle bass on cnbc the other day, I like this guy, he doesn't sugarcoat anything.  He was saying he did a 25 question survey with the german public, and from 67-80% say let'm burn.  So does a german politician go against that sort of number???   Anyhow, the final gist of his comments were we go back into recession next year and greece will in fact default.... Of course wall st. doesn't like straight talkers like kyle, so we will just say he is nuts.

[Mizzou_Tiger]

heres the deal............in simple terms.......yes they are broke..........I am pretty sure just about every government in the world is broke or dang close...........couple that with how closely the monetary system is tied together and with the government, by default (no pun) they might as well be broke........

so if everyone is broke then it all defaults and we catapult back to the stone age of bartering...........HENCE MY POINT about grains being the new currency..........if we get to that point raw commodities will be in charge..........

HOWEVER, given our world and human nature and drive to push forward............that is likely not going to happen unless SOMEONE CALLS IT OUT...........I think in 2008 we saw that happen at first..........and then everyone realized the domino effect and maybe too big too fail was REAL because the alternative was REALLY BAD..........

and since most countries are lending a helping hand to the problem, it tells me that no one is in the mood to CALL IT OUT........ergo we just grind around in this mess.........at the end of the day the powers at be feel that bankrupt and blind is almost the same as bankrupt and dead when it comes to world financial markets and economies, the only difference being bankrupt and blind means they still have a job..........and it will likely be that way until they find a way out or SOMEONE CALLS THEM OUT, ONLY AFTER A SOLUTION IS FOUND............

ERGO...........all this BS and coverage is going to mean nothing.........look back at our financial collapse.........we were on the verge or stone age..........listen to the talking heads three years later and they were suicidal scared..........well looky there, sun came up, sun went down, world went round, and you can still use cash or credit.........

but you gotta have something to talk about and trade for awhile

[sonoma72]

I don't agree that we can just keep kicking the can down the road, that refying in perpetuity equals success, eventually debt will have to wash out, somebody will have to fall on the sword.  What is the greek solution, they have "no chance" of ever repaying their debt, so refinancing them for another year equals what?   how many countries are in that situation?  how many consumers are in that situation?  Compound that with falling wages in western countries in order to compete with low wage asian labor, this works out real well, lower wages, exploding debt...   who ultimately eats all the writedowns that will come?  they just don't disappear.  Do the germans want to eat the greeks dirty laundry, not a chance, and i would be shocked if they take one for the team.  comparing east germany to greece is beyond laughable, has anyone ever talked to a german?   here is one way of putting it, how long did it take farmers to turn the ship around and get their financial houses in order from the 1980's, a pretty darn long time.  In fact, I know a lot of guys that ran that same mid 80's equipment until just a couple years ago.  this current mess makes that look like childs play and won't resolve itself any sooner.  On a marketing note, what does this mean for grain prices, I have no idea, but it is raining and I have nothing better to do 🙂

[Mizzou_Tiger]

think about bankruptcy in its most simplest terms..........its a get out of jail free card.........sure you are supposed to be stamped with a bad credit guy logo, but that only sticks around so long and most of the time you can find people or ways around that..........

think about government.........its essentially a business, being funded by the people's money, being run by a bunch of individuals that don't know or care who funds them, that does not worry about ceasing to exist because the individuals that fund it will never vote to end funding because that would result in ending entitlements and stability..........

think about a government and bankruptcy combined..............THEY DON"T CARE because it DOESN"T matter............and as world economies become more connected and complicated...........its pretty easy to even things up with one key stroke..........all these currencies and countries feed off one another.......

I am not saying its right or wrong.........not saying it will lead to prosperity..........matter of fact it maybe the beginning of what many have termed as the deterioration of the standard of living for developed countries as emerging markets come online..........its a theory that as a world there is a net sum balance........and as more individuals increase their standard of living others decrease.........these changes are likely incremental and small and only observable over a lifetime..........

so we really don't know the end game or what timeline it exist on..........

[fringeacres]

We as a nation are not broke. We are cash poor as farmers have been for decades. Interesting points are that over 50% of US debt is owed to US citizens. So we as a govmt borrow from ourselves and are slow paying back and wont sell privately to ourUS citizens our govt assets. Untangle that. Nightly news promotes china owning our debt. They do. 8%. They will stand in line behind and wait.

[sonoma72]

I do agree with the zero sum theory.  everyone can NOT live like a rockefellar, end of argument.   I do agree that the "era of the peasant" is over in the west, as that "prosperity" is now being realized by people in other countries.  I have harped forever that wages are flat to stagnant and have been since 1980 and now evidence is they are falling here.   You have expressed a view that grains may be a  new form of "wealth,"  and I wouldn't disagree with that either, in fact I think ag is and will be a shining star.  I guess I just am not real excited that many fellow americans will be entering a world of pain as we go forward, and I would rather put effort into saving their butts, instead of saving some banks butt because they were greedy and invested in a flaming dumpster pile 12,000 miles away.

[hardnox604008]

If all the breathless hoopla wasn't such an insult to the intelligence I suppose you could say that a farmer should be in favor of every bailout and intervention.

After all, my guess is that following a deflationary collapse the value of a bushel of corn is approximately 0.