Crapping Out at the Global Carbon Casino ~ The Risk Averse Alert

Thursday, December 17, 2009

Crapping Out at the Global Carbon Casino

"Fannie Mae recently warned, for example, that it could not pay the dividends it owes the Treasury, so 'future dividend payments will be effectively funded with equity drawn from the Treasury.'"
— "4 Big Mortgage Backers Swim in Ocean of Debt" NY Times, 12/16/09

What's that I smell? Is it ... is it ... sovereign default?

The fact traders are concerned about the risk of a squeeze cascading in the Euro zone is unusual enough to be ... alarming. We may be at an inflection point.

Oddly enough, the dollar index, technically speaking, appears much like it did in '07 when but the beginning of the global financial system's brewing sorrows was gaining recognition. Then, too, the index would bounce like it has over recent days ... only to get knocked lower.

This view curiously turns into frightful possibility of dollar collapse when one considers gold — again, strictly from a technical perspective — appearing poised to explode higher.

Something in this light to consider...

Construction on a global carbon casino is being halted in Copenhagen. This might have been the last chance at peacefully continuing status quo arrangements of the past couple generations. Backs to the wall — no ruse remaining to mask insolvency — a bankrupt aristocracy has no choice but turn on itself in shark-on-shark action.

Given a foreboding configuration of things, a stunning kickoff event in a dire endgame — something precipitous, yet passed off as an "overreaction" and subsequently leading to recovery — is a possibility that has been building for quite some time now. Absolutely nothing diminishes this likelihood.

Granted, the prospect of an imminent, deep swoon should be regarded little more than a "gut feeling," despite being reasonable from a technical perspective. Yet I throw it out there because talk of "recovery" becoming fashionable these days is so ridiculously out of touch with reality that, the financial world turns by "inflate or die" ... and there presently is far more at risk of dying than finds power to further inflate.

Fast Money
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