Trouble Brewing on the Continent ~ The Risk Averse Alert

Tuesday, January 03, 2012

Trouble Brewing on the Continent

Leave it to busy bankrupt beavers to stage a New Years euro-suck with net effect on major indexes no less ominous than noted here last week. On all accounts does momentum's fade over the past couple months still stand out as indexes levitate at or near their highs over the same period. Consider this but an added measure of underlying weakness presenting a suitable technical backdrop presaging a near-term challenge of October 2011 lows (let alone paving the way for an eventual collapse to levels last seen in the 1987-1994 period).

Right on cue does Greece lay down the EMU gauntlet...

The kind of existential threat likely to make a well-hedged short salivate, I think.

Add Hungary's snub of core Team Fraud institutions, laying a framework under which every sovereign trapped within the ineptly regulated EMU might escape with a future possessing a promise of progress, rather than misery such as is otherwise prescribed by unabashedly fascist stalwarts like the IMF, and we have the makings for a year of financial fireworks, as one fraud upon another falls by the wayside and propels today's scrambling benefactors to the "defendant" side of court dockets the world over...

There were other political matters settled along with this issue surrounding the autonomy of Hungary's central bank. Not being terribly palatable to any reasonable American's thinking, still, can the EU's consternation be seen as anything other than so much hypocrisy in the face of recent political charades imposed on Greece and Italy (these coups occurring with the EU's blessing, of course)?

Hungary not currently a card carrying member of Club Euro-Scrip, its step in the direction of sovereign self-determination is most unwelcome to bankrupt institutions whose solvency hinges on political appeasement facilitating open-ended bailout at all costs (risk of accelerating hyperinflationary breakdown be damned). Surely, the Greek and Italian parliaments are taking notice. Truth that, the EMU is dead and probably days away from chaotic disintegration has rudely imposed itself on a fantasy land preferring to believe the U.S. is "decoupling" from Europe. Anything for a nickel, I guess.

Fast Money
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