Wednesday, December 15, 2010

European Riots Hit Futures

"It's beginning to look a lot like Christmas!...All Around the world!"...Except Europe that is.

Rome is burning today as protesters took to the streets in protest of the Berlusconi re-election:

"Demonstrators, background, clash with police in Rome's Piazza del Popolo Square on Tuesday, Dec. 14, 2010. Premier Silvio Berlusconi won back-to-back votes of confidence in the Italian parliament Tuesday to survive one of the toughest tests of his political life. But he was left with a razor-thin majority that will make it hard for him to govern effectively. As lawmakers cast their votes, a violent core of anti-Berlusconi protesters outside clashed with police, smashing shop windows, setting cars on fire and hurling firecrackers, eggs and paint."

You won't see pics like this in the American media of course.  CNBC is too busy painting rainbows as they pump the economic recovery. 

Meanwhile things aren't much better today in Greece today either:

"Greek unions grounded flights, kept ferries docked at ports and shut down public services today to protest wage cuts as the government sticks to conditions of an international bailout.

Air-traffic controllers walked off the job, canceling all flights to and from Athens International Airport. Public transport workers, whose salaries were cut 10 percent under a bill approved early today in parliament, will work on and off between 9 a.m. and 5 p.m. to carry protesters to rallies.

“In terms of our salaries, we are going back at least 20 years,” said Stamatis Klapsis, 52, who has worked as a stationmaster at a suburban Athens bus depot for 31 years. “They are taking us back to the Middle Ages.”

Quick Take:

Santa may decide to fly right by Europe as he delivers his presents on Christmas Eve.  Could you blame him?  Who in the heck wants to land a sleigh in a place where all hell is breaking loose.

It's clear that the people are waking up and realizing their countries have sold them to slavery as they bailout the banking cartel at their expense.

I am sure our banks aren't too happy about this unrest considering we have about $350 billion in exposure to the PIIGS as reported on Zero Hedge:

Stocks are trading down a bit at the opening.  No need to fear.  I am sure the trading robots will have us in the green in no time.

Until later.


Cheeni said...

I see that after our talk you have removed your "the bear will be back in 2010" tagline. Smart (albeit belated) move. Out of curiosity, is this your implicit admission that the bottom really was in March 2009?

Hans-J. Schmid said...

I have a nice little video on my blog at showing the greek riots today.

Jeff said...


Not sure but 2010 is over so it was time to change the tag.

I do not think this is over by a long shot. The market can rally trhanks to Ben's magic wand all it wants.

The losses from the credit bubble still have not been taken and I expect them to be hidden by Ben's magic QE wand as long as they can.

There will be no recovery without defaulting or paying off the losses from the last boom.

Whenever that happens the market will drop significantly. By the looks of bonds today I expect it to happen sooner rather than later.