16 Responses to Europe on brink of ‘Major Financial Collapse’ says Guggenheim CIO

  1. George says:

    ‘Guggenheim Partners is a privately held global financial services firm with more than $100 billion in assets under supervision,,,,,,,,,,,,,,,,,.Guggenheim is headquartered in Chicago and New York.’ Just a thought, but is he trying to talk up the Dollar? I read that with the new USA borrowing being discussed and yet to be agreed they will be up to 98% of the GDP. By comparison in 2001 it was 55%.

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    • I think there are many rogue players and moneychanges in this sinister game. With the exception of the rise of mercantilism, we’ve never lived in an Age where people went to such lengths to capitalize off the misery index.

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      • Julie says:

        Hey Alvin-
        Agree w/ that 100% – the level of . . . disconnectness from our fellow humans is astonishing. The love of money and power on such a grand scale is beyond anything I could have imagined.
        Quick question: What is the 11:11 signature encoded category?
        Peace, Alvin. I think the Big Guy has a special place in His Heart for you . . .

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      • If He does, He’s certainly expressing it through all of you. God’s mercy saves to the othermost——- there’s a beauty in the redemptive thought of such unconditional, all encompassing love that can so paint the human race with a spirit that sometimes can’t always be heard, or seen but always felt.

        11:11 is about the synchrony of the number in disaster incidents. The number is encoded in most End of the world disaster movies and coincides with the 11:11 universal time stamp arrival of the winter solstice December/2012.

        Good to hear from you as always,
        Alvin

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      • Golfdad641 says:

        Well poop, I just realized my name Golfdad641 6+4+1=11, so uh, er, um, should I change my user name? 🙂 I also ordered the revision of your new book this morning 🙂

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      • Funny…I can always count on your humorous disposition Warren and I become accustomed to your name. You’ll like the revised version. I appreciate your valuable contributions and presence and look forward to the meet one day.

        peace and blessings,
        Alvin

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  2. Ciam says:

    “With the exception of the rise of mercantilism, we’ve never lived in an Age where people went to such lengths to capitalize off the misery index.”

    Amazing phrase, Alvin! So frightening, and so true.

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  3. luisport says:

    Deutsche Bank has already forecast the cost of any redemptions Spain and Italy.

    Despite the alarm, market observers say that Italy and Spain can still avoid having to request outside assistance. However, if they have to be intervened in a manner similar to Portugal, Deutsche Bank estimated that the aid packages to the two countries will cost 788,000 euros (300,000 million for Spain and 488 billion euros for Italy). This at a time when the Financial Stabilization Fund has a firepower of just over 400 billion euros.

    Despite the simple arithmetic, the values ​​can reveal that the European financial stabilization fund (EFSF) is insufficient if Spain and Italy are no longer able to access the market, Deutsche Bank believes that the fund has the capacity to deal with the two countries. This is because the two countries could be helped otherwise. In Spain, where the problem is the financial sector, the European Union (EU) would allocate 75 billion euros to recapitalize the financial sector.

    According to the bank, this would serve to save 225 billion euros would be enough to relieve pressure on Madrid. As for Italy, the bank’s economists argue that in case of need, instead of doing a three-year program, the EFSF could buy debt on the secondary market. With the timing right argue that this would be efficient and save ammunition to the EU. http://economico.sapo.pt/noticias/quanto-custa-salvar-espanha-e-italia_123950.html

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  4. Dennis E. says:

    Bad situation for everyone and a run on the banks here in the us as what appearing is happening in greece could cause the goverment to call for a banking holiday. having some cash on hand in the home to get through the crisis is a good idea. However, thank God we do not yet live in a cashless society.

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  5. Stephen says:

    Declining levels of bank deposits will lead to higher interest rates (particularly lending). And greater recession, and another wave of riots.

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  6. luisport says:

    US Markets continue the hemorragy today… S&P and Nasdaq turn negative to this year and Dow get a day low of 11,700.34 untill now!

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  7. luisport says:

    While You Weren’t Paying Attention… Brazil Was Blowing Up Too!
    Lost amidst talk of the Euro blowup, the debt deiling nonsense, and the Chinese hard/soft landing: Brazil!

    Deutsche Bank deep thinker Ajay Kapur identifies it as one of his big risks to watch:

    We have cited risks in Brazil for Asia for over a year now. While “this time is different”, and most investors (and most colleagues) are incredulous, we think the market is now recognizing this risk. Brazil is the only large equity market to be in a proper bear phase this year. We do not claim any special insights into the nitty-gritty of Brazil, but we have run all the Asian markets and Brazil through our “financial vulnerability” indices. Brazil stands out because of its credit metrics, its overvalued currency and its current account deficit (at a time of a massively positive terms-of-trade); (see Figure 10 for details).

    While many argue that this is a “normal” credit cycle in Brazil, and stability is leading to more financial intermediation, we are wary of sharp increases in credit multipliers (the ratio of loans to the monetary base) anywhere. These are proxies for animal spirits in any fractional reserve banking system, and sharp increases tend not to end well.

    Read more: http://www.businessinsider.com/brazil-financial-problems-bovespa-selloff-2011-8#ixzz1TyvSQIs2

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  8. Anna Fryer says:

    Seems like my Grandma was right,,’ Put the money under the mattress darling’ she would exclaim, those banks are no good! The facts are IN FRONT OF US and the powers that be are still whistling in the dark,, I mean who actually are they kidding now? WE KNOW WHATS GOING ON! Thanks to this site and others who share correct non intellectual waffling info..

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  9. luisport says:

    Two things happened when the Senate voted in the “Bipartisan” plan into law yesterday: i) deferred debt on the Treasury’s balance sheet finally caught up with reality, and ii) as a result of i) America’s Debt/GDP just hit a post World War 2 High of 97.2%. Becasue as the Daily Treasury Statement as of last night indicates, total US marketable debt surged by $124.6 billion, while debt in intragovernmental holdings (Social Security, Government Retirement Accounts, etc), soared by $113.6 billion, for a combined one day change of $238.2 billion, the single biggest one day increase of US debt in history. Obviously this is a result of massive underfunding and disinvestment in the various government retirement accounts as well as due to deferred debt which was to be booked since the debt was breached on May 16. However, how marketable debt could increase by a whopping $125 billion without any actual auction settlement is slightly confusing. Just as confusing is that according to the endnote in the debt subject to limit calculation, the new ceiling is not the $900 billion increase as requested, but only $400 billion more than the $14.294 billion previous, or at $14.694 billion. We hope this is some Treasury type or misunderstanding as this new ceiling will be breached in a month. And the last thing we need is this whole debt ceiling drama back again in September. One thing there is no confusion about, however, is that based on the latest gross debt number of $14.581 trillion, and the just reported Q2 GDP of $15.003 billion, total US debt to GDP is now a post World War II high of 97.2% (and that excludes the GSE off balance sheet debt).

    http://www.zerohedge.com/news/gross-us-debt-surges-240-billion-overnight-us-debt-gdp-hits-post-world-war-ii-high-972-official

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  10. It means the number is wired into a psyche. It is everywhere you’re right and I think it’s showing up more intentionally and sublimally as we move into the future. I wrote about the phenomena of the number in my book. There is even a supernatural horror movie due out on November 11 with the same title.

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