1. Statistics are purely a bullsh.. ( interesting how close bullish and bullshiting can be) game these days – as Europe joined the liars game with the introduction of the Euro inflation numbers were suddenly much lower and as inflation is being brought down the growth rate is bogus as well since it is literally inflated. The surprise growth quarter of Germany is fine tuned by the interest of a government which wants to win elections and as we had in one former quarter last year the same tricks at work massive government spending creates the illusion of growth which was created by many one time events which will take away either later purchases like in cars or the government spending will vanish after the election. Plus this quarters growth is measured against last quarters deep slump which makes it very relative anyway.
Gross domestic product rose a seasonally adjusted 0.3 percent from the first quarter, Germany’s Federal Statistics Office in Wiesbaden said today. The French economy also expanded 0.3 percent, Finance Minister Christine Lagarde said. Economists predicted contractions of 0.3 percent in Germany and a 0.2 percent in France, Bloomberg News surveys showed. The euro climbed half a cent to $1.4262.
2. Elizabeth Warren said in an testimony and more explicit in an interview what everybody ignores although everybody knows. The toxic assets have not been removed and are booked in the balance cheats on fairy tail levels. Anybody claiming that Bernanke or Geithner doing a good job is a paid liar or brain dead. The bottom line is the real problems are not solved like in Japan 20 years ago and will lead to the same consequences a systematic decline of US wealth as taxpayers will have to throw more trillions at this banks while they still sack in their billions of bonus ( rob ) payments. This Obama admin is even worse than the former as they can not say they did not know but after all they are the same bunch of corrupt thieves as most politicians are these days around the world. Problem is rather that people do not kick their ass and instead people with an obscure reputation can sit as chairman’s in those finance committee’s and help Wallstreet to steal even more money. Check the video out at zerohedge
Elizabeth Warren, head of the Congressional Oversight Panel, which yesterday released quite a sobering report on the true state of the banking industry, explains what is really going on with the increasingly irrelevant balance sheets of the bailout banks (all of them). Once again underscores what a farce the stress test was, the complicity of the accountants in making the transparency initiative a sham, and why the banks are still as underwater as they ever were.
3. I just heard on Bloomi that Asia is reluctantly bullish and they pray for lower prices to get a chance to get into this market – well they will get lower prices soon lets see how they like the tasty of dropping knives. Sometimes I think I am in the twilight zone but on the other hand the euphoria expressed now in many instances and cases around the world confirms my basic assumption that we will see new lows.