1907 Bank Panic, 2012 Style ~ The Risk Averse Alert

Tuesday, June 12, 2012

1907 Bank Panic, 2012 Style

Anyone wanna bet that, for every scare tactic being applied to Greece, representatives of the Russian and/or Chinese governments are working behind the scenes to counter the implied threat? Are you kidding? Just imagine how quickly imperialist intrigues in both Iran and Syria — these inspired by a collapsing financial system and venturing to engulf the entire Asian continent in war — indeed, might rather quickly dissipate once the euro-zone disintegrates and brings down the West's major banks (including, most emphatically, those in the United States). It's probably a safe bet, too, that Russia and China perceive far more opportunity than just peace in the region were the EMU to collapse and bring social chaos to the front door of Team Fraud's captive states.

So, threats to Greece's food supply, its energy supply, its credit, make for a Depends moment in the face of very significant players today being threatened in other dangerous ways, whose present interest now probably rests in the euro-zone's demise. Oh, those Ivy League strategists — the children of Oxford — they're the best! A taco short of a combo platter always makes for a great laugh. Rest assured, we will never hear anything about this. Yet a Russian and Chinese education of up and coming Greeks on the geopolitical situation in truth (as opposed to the "so hysterical, it's downright funny" of trapped, bankrupt swindlers, some of whom are so in tune with Nazi ways, they've earned the name) is a matter likely occurring this very moment.

Per but the financial aspect of the EMU's pending demise consider the 1907 Bankers' Panic a prospective template, with many matters rhyming today. Always knowing that, at some point this moment would arrive, even one step back in a more vicious repeat of the 1907 experience might find Team Fraud preparing two steps forward to a global banking union, topping its previous accomplishment which led to creation of the Federal Reserve System. Something to think about, no matter how funny today's bumbling pawns.


The verdict is in. The two best trading days of the year — these occurring over the past month — and zero follow-through. Well poised, too, it appears (see bottom panel), for a return of weakness, this while $NYA still trades below its 200-day moving average.

Indeed, all things technical continue supporting a very negative, near-term outlook. A rapid trip back to index levels last seen in the summer of '09 remains highly probable over days and weeks ahead.

Fast Money
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