February 22, 2012
A quick glance at most of the headlines over the weekend and the primary focus seemed to be either calling a near term top in domestic equity indices or a focus on the Greek debt situation. Why is anyone even paying attention to what is going on over there? Until the ISDA declares a default where the underlying Credit Default Swaps (CDS) are triggered, it is all just noise.
The ECB has broken the rule of law by placing itself as the senior creditor ahead of private creditors, the Greek government is trying to pass retroactive legislation to trap private sector creditors holding out of the PSI, and the leader of Greece was not even elected by the people of Greece – how much more manipulation and insanity do we need to monitor? More...
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The euro (EUR) was removed from the boiling water this weekend, as the next phase of the bailout for Greece was approved… The reaction of the euro has been somewhat muted though, as most of the markets, being Pfennig readers, already saw the baby steps of stabilization going on, and priced in an approval… The euro has moved higher than 1.32 this morning, but, like I said, the move has been somewhat muted…
You see… Details, details… The details always get in the way, eh? Apparently, the final draft of the agreement — which, I must say, I was relieved to see the negotiations not break down — includes a 53% haircut on Greek bonds, which are terms that are much harsher for the private-sector than originally thought… More...
Oil Rises to Highest Level in Nine Months on Greek Aid, Iranian ExportsOil rose to the highest level in more than nine months after euro-area finance ministers agreed on a second bailout for Greece and Iran said it stopped selling oil to France and Britain.
Prices gained as much as 2.1 percent after the ministers awarded 130 billion euros ($173 billion) in aid, wrung concessions from Greece’s private investors and engineered a profit transfer by the European Central Bank. Iran stopped selling oil to the two countries yesterday to preempt a European Union ban, according to an official news website. More...
Featured Commentary:
Swiss America believes owning classic United States $20 Gold coins is no longer a luxury, but rather, a necessity.
gold Sovereign debt problems in the United States and Europe seem destined to worsen this year. The mainstream financial media may never report about the likely inflationary consequences of bailouts and "quantitative easing," nor are they likely ever to recommend tangible assets for financial protection.
At the moment the public interest and demand for Double Eagle U.S. $20 gold coins is low, so the price premiums above the intrinsic melt values (.9675 ounce of pure gold in each coin) are historically low. The historical ratio of price to bullion content for these collector coins has been 2:1, but today it is about 1.25:1 More...
