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Originally Posted by EvosM3
Another day of selling tomorrow? I thought about stacking up on JPM puts but ran out of time and the order didn't fill. I still have puts though, mostly GOOG. The Greeks will cause the European markets to collapse for sure and I'm sure it'll happen over the weekend or Friday afternoon, and that's to be expected.
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I'm expecting Spain to be our Lehman, not Greece. You get collapses from TBTF's, and Greece can fail. Spain cannot, and that's the trigger to the gun you should be eyeing right now. The 10-year Spanish bonds now soaring to a record of 6.5%, never has it been this high. Their 2-years are now over 5% because Bankia needs funding from the public, or government, or somewhere. And look at our current US treasury market, now the lowest recorded yield in history at 1.64% for our 10 year. Money is flying out of equities and into bonds. Look at the move in US dollar again, keeps making a new 52-week high every day almost. Made a new one today, and the Euro will collapse through 1.24. I've been betting on it to collapse down from late April when it was 1.32, and I expect the move to bottom somewhere 1.20 for the Euro.
ECB came out and said no more Bond-buying programs, no more LTRO3. ECB told governments they are "own their own". Chinese government has just come out and said the exact same thing; "We have no interest in launching any stimulus". And the FED will bring no QE3 or Twist extension this June. The end game is approaching very soon, and June will not be a pretty month. That's why I said a while back I expected a collapse not in May, but in June/July time frame. We shall see.
I should write a post sometime about how Solvent Banks can actually be very insolvent.