Monthly Archives: April 2012

The Secrets of the Spanish Banking System That 99% of Analysts Fail to Grasp

Spain is a catastrophe on such a level that few analysts even grasp it. Indeed, to fully understand just why Spain is such a catastrophe, we need to understand Spain in the context of both the EU and the global … Continue reading

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The Bundesbank’s in Hot Water… Will It Take the Heat or Throw the ECB Under the Bus?

Yesterday we discussed the political fall-out for German Chancellor Angela Merkel regarding revelations that the Bundesbank has in fact put Germany on the hook for over €2 trillion via various back-door deals. Today we need to consider how those same … Continue reading

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Merkel’s Back is Against the Wall… Time for Germany’s “Plan B”?

As long time readers know, a central theme to my analysis regarding Europe is that politics, not economics, rule Europe. What I mean by this is that most major decisions in Europe are determined by political agendas that ignore economic … Continue reading

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Graham Summers’ Weekly Market Forecast (Here Comes Spain Edition)

As expected Francois Hollande won the first round of the French elections. He and Nicolas Sarkozy will run against each other in the second round, which will occur on May 6th. The Euro isn’t taking this news well. As I … Continue reading

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Spain is Greece… Only Bigger and Worse

On the Surface, Spain’s debt woes have many things in common with those of Greece: 1)   Bad age demographics 2)   A toxic bank system However, you’ll note that as we tackle each of these, Spain is in fact in far … Continue reading

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Forget Today’s Bond Auction, Spain is an Absolute Disaster

Well the financial world is awash with reports that the Spanish auctions went well. They did not. And you better believe the ECB and other Central Banks were involved in the buying. Instead, Wall Street is using the auction (and … Continue reading

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Graham Summers’ Week Market Forecast (Words Are No Longer Enough Edition)

The markets have entered a very dangerous environment in which even the usual market props (Fed Presidents calling for more easing) are being overridden by market concerns for Europe. To whit, last week, not one, but two Fed Presidents (Yellen … Continue reading

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How Bad Do Things Have to Be For the Fed AND the ECB to Talk of Easing… On the Same Day

Once again the markets began to tank. And once again several Fed stooges jumped forward to claim more easing could be coming. And so the markets, having failed to understand that the Fed cannot ease despite the Fed failing to … Continue reading

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How and Why Germany Can Leave the Euro If It Needs To

For months now I’ve averred that Germany can leave the Euro if it needs to. It is clear Germany does not want to leave the Euro as doing so would: 1)   Mean it taking the blame for the collapse of … Continue reading

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Europe Will Collapse in May-June

The following is an excerpt from a recent issue of Private Wealth Advisory. In it, I explain why exactly Europe will Collapse completely in the May-June period. The confluence of negative factors is unlike anything I’ve ever seen before. To … Continue reading

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Revisited: Three Data Points That Prove Europe Cannot Be Saved

I first published this article a few weeks ago. Given the speed at which Europe is unravelling I think it’s worth reviewing as it summates the situation very clearly.  I continue to see articles in the media claiming that Europe’s … Continue reading

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We Are Nearing the End Game of Central Bank Intervention

Because of a lack of foreign interest in long-term Treasuries, the Fed decided to step in to pick up the slack. As a result of this, the US Federal Reserve has accounted for 91% of all new debt issuance in … Continue reading

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Bernanke Knows Europe is Out of Options and On the Verge of Collapse

Having finished his “damage control” PR campaign (for now) Ben Bernanke decided to discuss… Europe, urging the Big Banks to help prop up the system over there. Exclusive: Bernanke breaks bread with top bankers After completing a series of public … Continue reading

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Why the ECB Expanded Its Balance Sheet By Over $1 trillion in Less Than Nine Months

Between July 2011 and today, the ECB has expanded its balance sheet by an incredible $1+ trillion: more than the Fed’s QE 2 and QE lite combined (and in just a nine month period). This rapid and extreme expansion of … Continue reading

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The Fed’s Latest Announcement: “The Easy Money Spigot is Being Turned Off…”

I’ve been pounding the table for months saying that QE 3 wasn’t coming. The reason was simple: the Fed is now politically toxic and cannot engage in aggressive monetary policy without experiencing severe political backlash (this is an election year). … Continue reading

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Exactly Why This Time IS Different And the Fed Will Be Powerless to Stop What’s Coming

The following is an excerpt from my latest issue of Private Wealth Advisory. In it I lay out precisely why the coming Crisis in Europe will be THE Crisis I’ve been forecasting for the last 24 months. Over the last … Continue reading

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Graham Summers’ Weekly Market Forecast (Europe on the Verge Edition)

Things are once again deteriorating in Europe at a rapid pace. The ten-year Italian bond is right back to where it was before LTRO 2 (just one month ago). This is the end result of central bank intervention in the … Continue reading

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