Nasty in Red ~ The Risk Averse Alert

Thursday, February 16, 2012

Nasty in Red

Something subtly troublesome has been occurring with fair regularity of late. We should all wonder whether it might be likened to warning noises a machine emits prior to seizing...

NYA 1-min

Bam! The Feed Nazi says, "No data for you!" Are the owners of the NYSE too busy scalping via HFT and/or flat broke following a failed bid for Deutsche Boerse to afford a reliable feed? Reported over recent months have been other data delivery problems deeper in the exchange's architecture. So, you have to wonder is this a case of "what goes around, comes around" finding the NYSE stuck with a dearly priced IT system to rival the many piles of overpriced garbage listed on the exchange?

And now adding credibility to prospect for a Great U.S. Discrediting dead ahead is growing risk of NATO's dissolution brought on by Europe's financial disintegration...

One wonders just how out of touch are Washington's warmongers. Senator John McCain is a worthy case in point here. Big hawk. Not my cup of statesman. Yet also a co-sponsor of the Glass-Steagall amendment introduced with Senator Maria Cantwell to the Dodd-Frank FinReg bill on ... drum roll ... May 6, 2010. What's his feeling on the prospective collapse of NATO as the EU disintegrates? Might be worth a tweet.

It's rather plain there is a whole lot of posturing going on right now, and most certainly some things are not what they seem...

It is no news here the Germans are posturing to force Greece from the EMU. The larger matter, though, is the EMU's likely disintegration once Greece falls. That's what Germany apparently wants, notwithstanding all the Alan Schwartz standup performed by German Chancellor Merkel.

Germany's entry into the EMU was a condition imposed principally by Britain, France and the United States as a price for reunification of the former East and West German states. And what is the position of this trio these days? In a word, vulnerable. Why wouldn't Germany seize an opportunity to abandon a project it originally wanted no part of?

Now, who could deny the diplomatic lengths Germany has gone to accommodate the euro's flawed arrangement turned deadly on account of breach upon breach of treaty agreements underlying the EMU? So now, Germany's firm posture is a breath of fresh air. There's not a lot the bankrupt nation state victims of a collapsed Ponzi scheme can do to a Germany effectively turning monetarist sophistry into an instrument of self-defense. Outside of sicking hapless ratings agencies barking threats of downgrades, for the bankrupt there's only assassination, terror and war remaining on the play card.

So, either we get Glass-Steagall now, or ushering in nasty probably will be bloodshed.

Fast Money
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