Monthly Archives: October 2011

Graham Summers’ Weekly Market Forecast (Wake Up Call Edition)

So the financial world has collectively woken up and realized that the latest EU bailout scheme is fraught with problems and loose ends. Amongst the various problems are: 1)   The Greek private bondholders are furious that the ECB isn’t taking … Continue reading

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Europe Will Make Lehman Look Like a Joke

So now that one day has passed and we’ve seen a ridiculous 3% move in stocks based on a “bailout” that is nothing short of moronic (Greece is still insolvent and didn’t take a big enough default), the financial world … Continue reading

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The Greek Deal Accomplishes Nothing… Systemic Risk is Coming

The markets are exploding higher this morning on news of the expanded Euro Bailout. The numbers at the moment are A 50% haircut for private Greek bondholders European banks have eight months to raise about $147 billion in capital An … Continue reading

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Germany is Already Printing Money… Deutsche Marks!!!

So… by now everyone realizes that the Euro is in major trouble and will no longer exist in its current form for much longer. However, the common view is that it is Greece and possibly other PIIGS countries who will … Continue reading

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Guess Who’s Even More Leveraged Than the European Banks?

While the world is awash in liquidity, no one seems to notice that it’s actually in the form of leverage or cheap debt, NOT real capital or equity. The US banking system as a whole is leveraged at 13-to-1. While … Continue reading

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Graham Summers’ Weekly Market Forecast (Stocks Are Last to Get It Edition)

Last week’s moves were entirely based on the fact that stocks are now tracking the Euro almost tick for tick. And last week, the Euro hit “take off,” despite the clear indications that Europe is facing systemic failure (the entire … Continue reading

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Old-School Business Virtues From the Master of Nouvelle Cuisine

“Is this even food? How can food taste so good?” My wife and I are sitting at Table #1 of Citronelle, the flagship restaurant of Master Chef and award-winning culinary genius, Michel Richard, at the Latham Hotel in Georgetown, Washington … Continue reading

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Four Facts that PROVE the EFSF Doesn’t Matter… At All

It’s time to settle the debate regarding Europe’s banking system. I know that the mainstream media keeps talking about another round of bailouts or an expansion to the Emergency Financial Stability Facility (EFSF) as though these things matter. But the … Continue reading

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Forget Greece, Europe is Finished

Let’s take an honest look at Europe. Merkel and Sarkozy claim they’ve got everything under control. They’re lying. Anyone who uses common sense can tell this. The reason… They’ve never considered the true price tag for the leveraged EFSF. I’m … Continue reading

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Graham Summers’ Weekly Market Forecast (Resistance Edition)

Traders have gunned the market higher over the last two weeks courtesy of: 1)   Short covering 2)   The Euro rally on French liquidity concerns 3)   Rumors of yet another Euro bailout Regarding #1, short interest on the NYSE was at … Continue reading

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The Second Wave of the Greatest Depression

It is now clear the US economy has broken down in a BIG way. Indeed, no less than Ben “green shoots” Bernanke has stated that the recovery is “close to faltering.” This, coming from a cherrleader like Bernanke is essentially … Continue reading

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We Had Short Covering in 2008 Too… It Didn’t Stop the Collapse Then…

I wanted to take a moment to discuss the current stock market rally. For starters, this rally has largely been driven by short covering. Before the market exploded last week, short interest on the NYSE was at its highest levels … Continue reading

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Graham Summers’ Weekly Market Forecast (Dexia Now… Who’s Next Edition)

Things are getting truly desperate in Europe. I’d like to show just how bad they are by way of example: the Belgian bank Dexia, which is now in the process of being nationalized. For starters, Dexia had 566 billion euros … Continue reading

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This is Short Covering Before the Next Collapse

The market action of the last few days reeks of short-covering more than anything else. I realize that rumors abound of more European bailouts (what is this… the 12th rumor?), Microsoft buying Yahoo! (an outright lie), and other items… but … Continue reading

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The TBTFs Have Undone ALL of Their QE (1 &2) GAINS!!!

While the European banking collapse is grabbing the most attention, the US banks, particularly the Too Big To Fails are showing serious sounds of distress as well. As you’ll recall from previous  articles I’ve written, the TBTFs are the institutions … Continue reading

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Seriously Folks, This is the Great Collapse

Stocks have now begun to confirm what the credit and bond markets have been telling us for weeks: that we are in a full-scale Crisis and going to new lows. This process will not happen all at once. Remember, the … Continue reading

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Graham Summers’ Weekly Market Forecast (Crisis Mode Edition)

Looks like the end of the quarter performance gaming is over. Indeed, the market got rejected in a big way at resistance (1,175 on the S&P 500). It then rolled over sharply and is now sitting on the trendline that … Continue reading

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