The Market Ticker
Commentary on The Capital Markets- Category [International]

This sort of crap disguised as "reporting" needs to be called out.

The shipwreck that killed at least 800 migrants off the Libyan coast was caused by a mistake the captain made piloting the overcrowded vessel, Italian investigators have said.

The captain and another crew member were arrested by Italian police after a group of 27 survivors from the tragedy arrived in the Sicilian port of Catania on Monday evening.

The vessel in question was approximately 20 meters in length, or roughly 65 feet.

Eight hundred people massing (let's be conservative) 120lbs each on a 65 foot vessel?!

That's 100,000 lbs or roughly 50 tons!

Virtually any 65 foot vessel is going to be subject to capsize if 50 tons of cargo (in this case, human cargo!) shifts unexpectedly to one side or another.  Gee, you don't think that's a problem eh?

Here's the real problem: The EU gives sanctuary to these so-called "migrants" (the true name for them is illegal invaders) why they are willing to get on board a grossly overloaded vessel for such a trip in the first place.  The solution is to stop enticing them to do that sort of stupid crap.

View this entry with comments (registration required to post)

This is curious statement....

“It’s urgent,” Draghi told reporters in Washington on Saturday during meetings of the International Monetary Fund. “We all want Greece to succeed. The answer is in the hands of the Greek government.”

Urgent for.... exactly who?

See, here's the ugly little ditty -- Greece's debt is sitting somewhere, and I bet a lot of the "somewhere" went through the LTROs.

That means that in some form or fashion the ECB is sitting on it either directly or indirectly.

Of course Jack Lew (our Treasury Secretary) doesn't like this either, because should Greece tell everyone to go stick it where the sun doesn't shine (and they should, by the way) the next obvious question is "why should anyone allow the US Government, or anyone else for that matter, to borrow at what amounts to a below-market-cost structure?"

The answer is "nobody should" and then there's a wee problem that arises among those who think that writing hot checks is a good idea.

Here's my recommendation for Greece: Start buying up rope, boiling it, and earmarking lampposts.

Officially and with the auspices of (Greek) law, of course.

View this entry with comments (registration required to post)

Heh heh..... I wonder what they're going to find.....

The Greek Parliament concluded a vote Tuesday early morning with the passing of the SYRIZA government’s proposal for an investigative committee to look into the circumstances surrounding the signing of the country’s two memoranda with its international lenders. Out of the 300 Greek MPs, 156 voted in favor of establishing the committee.

Before the vote, there was a long debate in which all party leaders spoke at the Greek parliament.

SYRIZA leader and Greek Prime Minister Alexis Tsipras said that his government is “seeking clear answers on how Greece signed these international agreements.”

“Greece is not a liegeman whose lenders can play games on its back,” notes PM Tsipras.

Samaras was opposed, of course.  I wonder if there's something really kinda ugly in there that Samaras is worried about being exposed?

I suspect there will be some very interesting findings that come out, provided the committee report ever sees the light of day.  I would recommend to all members of the committee that they stay far away from things like light aircraft, hot tubs and other similar dangerous places since unfortunate events seem to visit those probing the "masters of finance" on a curiously-frequent basis.

View this entry with comments (registration required to post)

You scratch my back, I'll scratch yours....... but if you try to take my money (as opposed to that of the peasants) I'll bend you over the table and.....

(Reuters) - The European Commission is considering an investigation into whether Greece, Italy, Portugal and Spain have illegally underwritten banks which have accumulated assets considered low-quality in the rest of the euro zone, the Financial Times reported.

The EC is currently studying the information requested from member states to decide if a full probe is required, the FT said, and a "conversation" was in progress between the member states and competition regulators in Brussels, according to people familiar with the matter.

This is how it works folks.

In fact, in an upcoming article (queued and ready to go) I discuss what I believe is the reason that there have been no prosecutions among banksters since the S&L crisis.  At its root the same thing that appears to have gone on here is in play.

I'll give you a tease:

In order to deficit spend governments need banks to cooperate both implicitly and explicitly.  If they don't then rates will rise as debt levels go up and deficit spending gets cut off because it becomes impossible to sustain.  This is the natural balance of business and is supposed to be the check and balance on government overspending exactly as it should be on your overspending.

If you spend more than you make it will not be long before creditors realize this and start hiking your interest rate for more borrowing.  Soon all you have available to you is the payday lender on the corner with his 500% annual interest rates; other than him (or a loan shark, with the only difference being that one's legal and the other is not) you're forced to live within your earnings.

Governments face the same constraint but there's a very efficient way to get around it: Buy off the people who would otherwise stop it.

This should be interesting to watch but my expectation is that this alleged "investigation" will be quietly dropped.

View this entry with comments (registration required to post)

Stand by to receive our transmission...

“We are a Left-wing government. If we have to choose between a default to the IMF or a default to our own people, it is a no-brainer,” said a senior official.

One would hope so.

I don't think this is a question of "concessions" per-se.  The fact is that the Eurogroup intentionally lent to a bankrupt nation (as did the IMF.)  They did so with the express intent of attempting to force the nation and its citizens into vassal status.

This is an inherently improper act and since the "government" that agreed to this has been fired by the people the Greek people have no obligation to honor that "pledge."

If you think this resolves with Greece knuckling under (again) to the Troika (whatever they wish to call it this week) I suspect you need to check your premise, as I doubt very much that is how all of this will work out over time.

View this entry with comments (registration required to post)

Main Navigation
MUST-READ Selection:
Wake Up America

Full-Text Search & Archives
Archive Access
Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.


The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be reproduced or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media or for commercial use.

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.