Macro, markets and see you next week
As I’d noted last week as the European Central Bank blinked and the spreads on bonds in the E.U. blew out, there were a whole lot of new developments that had me finally turning cautious and selling down all of our financial long positions along with a tech name that we let go.
The news out of the E.U. and the moves from the ECB/euro leaders are worse now than they were last week, and so are the ramifications.
Most worrisome, but little reported, is the fact that the E.U. countries are looking at forcing “repatriation” of each countries’ monies. That is, Swiss banks are about to be forced to send any and all money deposited into their system by Greeks back to banks in Greece … banks in Greece that are insolvent, not protected by any type of FDIC and who can’t be bailed out by a sovereign government that’s also wholly insolvent.
Capital flight is a natural, and important phenomenon of capitalism, in that money is supposed to flee to where it is safest. This is yet another new indicator that we’re at the end-game of the bailouts/banker-salvation policy that has dominated the 21st century thus far. As I explained last week, though, let’s not lose our ability to recognize capitalism and the prosperity it will bring now that it’s more likely than ever before in our lifetimes to finally return. Easy does it in the meantime, though, because it’s likely to get very ugly before the powers-that-be finally return to rule-of-law.
I’m moving this week and am chilling with the fam and what not, as you guys know. See ya next week.
