Bazooka Bluffs Revisited
In this post from last Thursday I had a section titled "Your Bazooka Bluff has Been Called". My main point (there is one sometimes!) was:
Well that game is now up. The players behind the money want a plan for an explicit backstop for Greece and some plan for Spain as well. The CDS costs will force the hand of the Eurozone here. In this day and age of government intervention in everything and anything this was inevitable. Why risk money on a wink and a smile when you can get a government guarantee on the whole thing up front? Why indeed. Anyone remember all those fire side chats about moral hazard I tried to have all the time? Maybe now you can see why.Of course this is not quite one in a million thinking but I thought it set up this week well.
I was happy to see some writing on the same topic making the rounds:
EU tries Paulson's Bazooka Ploy; Bazooka Theory vs. Historical Results
The Bazooka Jams As Propaganda, Pardon, Media Always Gets It Right... Eventually
Maybe we all like the word "bazooka" or something!
Huge Gold Article
The following article looks at gold every which way you can and is very thorough:
Gold: The Big Picture
Plenty to review, enjoy!
More? Ok, I like gold here because people in major power positions say stuff like this:
Nobody knows the cost of inflation – between 2 per cent and 4 per cent – so I think people could get used to 4 per cent and the distortions could be small,” said Mr Blanchard.
Article by Mish here.
Rules of Engagement
There was plenty of rumors today about a possible ban of credit default swap (CDS) trading. Of course this makes sense because the tide is going against the wants of the establishment. Where were the bans on going long Nasdaq 4500 in the year 2000? Of course there was no such thing. Short selling bans, uptick rules, and CDS bans are fast becoming the preferred method to deal with unwanted information.
Which brings me to the following thought experiment:
If on Tuesday morning February 16, 2010 suppose that the Government entities of the US instituted the following:
-The DOW cannot trade under 10,000
-The S&P 500 cannot trade under 1000
-The Nasdaq cannot trade under 2000
-Home sales cannot be executed at prices under their 2006 appraisal values
-etc you get the idea
Would the market reaction be:
A) panic as the establishment of a true banana republic forces everyone to flee a false market
B) the biggest one day gain in market history
I think the best answer says so much about where we are and is worth some serious discussion so have at it and please pass this around.
Friday Night Entertainment
We are close to turning the corner on Winter here, so let us welcome the chance to start ushering out the winter:
Just remember in the winter"The Rose"
Far beneath the bitter snow
Lies the seed
That with the sun's love, in the spring
Becomes the rose
Sports That are Not Football
Aside from the New England Patriots making Julius Peppers their number one target for the offseason, sports are thin for me right now. Sunday is the Daytona 500 but my man in the #29, Kevin Harvick has been on a cold snap for over two years (though he has had a good week so far!). Let's loom back at two moments that were thrilling from NASCAR history for me.
Dale Earnhardt, a personal hero (he reminds of my dad very, very much), and the winningest driver at Daytona Speedway, FINALLY wins the Daytona 500 in his 20th try. Skip ahead to the 2:00 minute mark for the drama. After his win every pit crew from pit lane came out to congratulate him and I remember welling up for the man:
Of course the tragic death of Dale was a serious blow to any racing fan (and very serious to me). Dale had hand picked Kevin Harvick as his replacement (he was going to retire soon) and Harvick was rushed into the car to race during the 2001 season (now #29 and white, the #3 will never be used IMO). In his third start and on the day before my birthday Harvick wins at Atlanta Speedway in one of the most exciting finishes ever in racing and I was a mess after the race. It was maybe the best birthday gift I ever received (skip to 1:45 mark, and watch until end if you have a spare moment):
Still makes me shake!
Now I would like this as my daily commuter; mean and coll all in one:
The purrfect Valentines Day date?:
see more Lolcats and funny pictures
Please make sure you practice Valentines day around children better than this:
see more Epic Fails
Lock the door!
From Watchtower, who requested a favorite clip from one of my favorite films "Glory":
Some requests, some editors choice, some music magic!
Reader Gawains requests and dug up a clip I have been wanting to post for some time! Start the weekend off with this clip from "Walk the Line" and Joaquin Phoenix playing Johnny Cash with "Cocaine Blues":
Reader C-T would like to see Green Day and "American Idiot" and all I can hope is she does not mean me!:
I just finished the Ozzy Osbourne autobiography "I am Ozzy" and it was at times hilarious, sad, scary, and always revealing. That said, how can I not do an Ozzy tune? Try out "You Can't Kill Rock and Roll" with Randy Rhoades doing his magic:
Greatest guitar player ever, IMO.
A lady I used to "date" in college (Ah, the days!) loved this song and so I send it out to her! This is Tonic with "If You Could Only See":
Very nice and it had serious effects on her if you know......
Last Call!! Time to close the show, but you all know the show never ends!
My Dad's birthday is today and I hate to bring personal stuff into the blog, but this was his favorite song and the last song I heard him play before he died in 1996 was his home state song "West Virginia"
It's better on a 12 string guitar, but good anyway!
Have a good night.