Monthly Archives: November 2011

You Cannot Build a Financial System on Rumors and Lies

This act is getting old. Almost every other day we’re getting rumors about new bailouts and interventions in Europe. All of these rumors turn out to be total lies as they are refuted usually within a day and sometimes within … Continue reading

Posted in It's a Bull Market | Comments Off on You Cannot Build a Financial System on Rumors and Lies

How the European End Game Will Play Out

With the European End Game now in sight, the primary question that needs to be addressed is whether Europe will opt for a period of massive deflation, massive inflation, or deflation followed by inflation. Indeed, with Europe’s entire banking system … Continue reading

Posted in It's a Bull Market | Comments Off on How the European End Game Will Play Out

Graham Summers’ FREE Weekly Market Forecast (Euro Breakup Edition)

The markets are rallying hard today for three reasons: 1)   Traders gaming the usual manic Monday 2)   The markets were oversold having fallen six straight days 3)   Short covering These are the real reasons the market is exploding higher. Traders … Continue reading

Posted in It's a Bull Market | Comments Off on Graham Summers’ FREE Weekly Market Forecast (Euro Breakup Edition)

Why Europe Will Result in Systemic Risk

Let’s rehash the European situation for those who still don’t get it. Taken as a whole, the US banking system is leveraged at 13 to 1. Leverage levels at the TBTFs are much much higher… but when you add them … Continue reading

Posted in It's a Bull Market | Comments Off on Why Europe Will Result in Systemic Risk

Either the ECB Prints and Germany Walks… or the EU Sees a Domino Debt Collapse Followed by Systemic Failure

By now, even the mainstream media is realizing what I’ve been saying for well over a year: that the EU in its current form is finished. I initially believed that we would see Greece kicked out of the EU. However, … Continue reading

Posted in It's a Bull Market | Comments Off on Either the ECB Prints and Germany Walks… or the EU Sees a Domino Debt Collapse Followed by Systemic Failure

Graham Summers’ Weekly Market Forecast (Flashback Thanksgiving 2009? Edition)

Stocks broke down in a big way last week as the situation in Europe has become truly dire. I’ll be addressing that situation in greater detail tomorrow, but for now, you should know that there are truly only two possible … Continue reading

Posted in It's a Bull Market | Comments Off on Graham Summers’ Weekly Market Forecast (Flashback Thanksgiving 2009? Edition)

Are Companies Less Risky Than Countries?

Graham’s note: The following is an excerpt from my most recent Private Wealth Advisory newsletter. In it I explain how the Fed’s moves have changed investor appetite for various asset classes. To find out more about Private Wealth Advisory… Click … Continue reading

Posted in It's a Bull Market | Comments Off on Are Companies Less Risky Than Countries?

What Other MF Globals Are Lurking In the System?

Without trust, the financial system cannot work. The regulators and Federal Reserve have done nothing to assuage these concerns. Instead they’ve shifted all trust onto their own shoulders: the defining bull argument for the market and economy is that “the … Continue reading

Posted in It's a Bull Market | Comments Off on What Other MF Globals Are Lurking In the System?

Graham Summers Weekly Market Forecast (Makings of a Top Edition)

There are two primary stories for the markets today. They are: 1)   The political/ financial reality facing Europe 2)   The US stock market rally Regarding #1, it is clear as day that the EU in its current form is finished. … Continue reading

Posted in It's a Bull Market | Comments Off on Graham Summers Weekly Market Forecast (Makings of a Top Edition)

Bernanke Knows He’s Powerless This Time Around

During Round 1 of the Crisis, the US tried to combat the collapse of the private banking sector (especially the TBTFs) by shifting debt onto the public’s balance sheet and printing money to buy Treasuries so we could maintain a … Continue reading

Posted in It's a Bull Market | Comments Off on Bernanke Knows He’s Powerless This Time Around

The 3rd Largest Bond Market in the World is Imploding

I’ve been warning for days that stocks are the last to “get it” and that this latest rally should not be trusted. Well, by the look of things, stocks are finally waking up to what the credit and bond markets … Continue reading

Posted in It's a Bull Market | Comments Off on The 3rd Largest Bond Market in the World is Imploding

This is No Cyclical Recession… It is a Secular DE-pression

Few if any commentators understand what is happening in the US today. The reason for this is that the vast majority of investment professionals believe that what they’ve experienced in their lifetimes is the norm. Put another way, an entire … Continue reading

Posted in It's a Bull Market | Comments Off on This is No Cyclical Recession… It is a Secular DE-pression

Graham Summers’ Weekly Market Forecast (Back Into the Fire Edition)

Stocks continue to remain in la-la land. I really cannot find another way to put it. Europe has now gone from a relatively small problem (Greece) to a HUGE problem (Italy). To put this shift into perspective, Greece is the … Continue reading

Posted in It's a Bull Market | Comments Off on Graham Summers’ Weekly Market Forecast (Back Into the Fire Edition)

Europe. Is. Finished.

Thus far, my analysis of Europe has focused on the super-leveraged banking system (26 to 1). At these levels, even a 4% drop in asset prices wipes out equity. That alone warrants concerns of systemic risk. The situation is not … Continue reading

Posted in It's a Bull Market | Comments Off on Europe. Is. Finished.

The EFSF Deal is a Joke: Europe is Broke

One of the items few investors seem to be focusing on is the fact that while the system is awash with liquidity, there is very little capital available. Indeed, the great irony of central bank policies in the post-2008 era … Continue reading

Posted in It's a Bull Market | Comments Off on The EFSF Deal is a Joke: Europe is Broke

Stocks Finally “Get It”

As I have stated time and again, stocks are last to “get it.” Well, they sure got it in the last 24 hours as it became clear that the leveraged EFSF doesn’t solve anything. Remember, the entire European banking system … Continue reading

Posted in It's a Bull Market | Comments Off on Stocks Finally “Get It”