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Japan Is Never Going To Default, And The Kyle Bass Trade Will Be A Disaster – Business Insider

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Kyle Bass’s Most Famous Trade Is A Disaster, And It Is Never Going To Work Out Joe Weisenthal | May 20, 2012, 6:42 AM | 23,775 |   Kyle Bass was one of the handful of hedge funders who made a fortune betting against housing during the subprime bust, and since then hes been stalking his next big “career trade.”For years now, his big target has been Japan, a country with a debt-to-GDP ratio of over 200% and a shrinking/aging population. Hes convinced that its only a matter of time before the country implodes in a massive sovereign debt crisis … Read more

Paulson Calling For A Greek Default

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According to Paulson & Co., a hard default by Greece could spell economic disaster of unprecedented proportion along with the breakup of the Euro.  In his 2011 recap letter to clients, he estimates $117 billion will be needed to recapitalize banks and satisfy other monetary needs. Paulson & Co.: “We believe a Greek payment default could be a greater shock to the system than Lehman’s failure, immediately causing global economies to contract and markets to decline,” the hedge fund said in the letter, a copy of which was obtained by Bloomberg News. The euro is “structurally flawed and will likely eventually … Read more

Marc Faber Resumes Bloodfeud With Treasurys, Still Sees Entire Financial System Imploding

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From Zerohedge: “In an interview with Bloomberg’s Sara Eisen and Erik Schatzker this morning, he does what he does best – cuts to the chase: “if you think it through and you are as bearish as I am, and you think the whole financial system will one day collapse, we don’t know if in 3 years, or 5 years, or 10 years, but one day there will be a reset, and everything will be essentially started anew, then you are better off in equities than in government bonds, because a lot of government bonds will either default or they will … Read more

Einhorn Ends 2011 Just Over +2%, Closes FSLR Short, Warns On Asia, Mocks “Lather. Rinse. Repeat” Broken Markets

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Anyone wondering why FSLR just jumped, it is because as was just made known, David Einhorn’s Greenlight has decided to close its FSLR position, after bleeding that particular corpse dry. “Our largest winner by far was our short of First Solar (FSLR) which fell from $130.14 to $33.76 paper share and was the worst performing stock in the S&P 500.” Einhorn also announces that he was among the “evil” hedge funds who dared to provide market clearing transparency and buy CDS on insolvent European governments: “We also did well investing in various credit default swaps on European sovereign debt.” As … Read more

Massive Default Is Best Way to Fix the Economy

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You want to fix this economic crisis? You want to put people back to work? You want to light a fire under the economy? There’s a way to do it. Fast. And relatively simple. But you’re not going to like it. You’re not going to like it at all. Default. A national Chapter 11 bankruptcy. The fastest way to fix this mess is to see tens of millions of homeowners default on their mortgages and other debts, and millions more file for bankruptcy. I told you that you wouldn’t like it. I don’t like it much either. It sticks in … Read more

A Crisis of Faith in America

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While the media has focused on the short term debt issue matters and to a lesser extent the long term implications what they have not addressed is the way this Circus has impacted the credibility of the USA Capital Markets. The political rhetoric and the refusal to deal with the issue at hand will have a lasting impact on the way the world looks at investing in America. Since 2008 the Government and those elected to represent the American people have made reactionary, over bearing legislation based on there popularity on the given day. Dodd-Frank, Capping Financial Institutions Wages, Over … Read more

Euro Rises to Two-Week High as Bailout Terms for Greece May Ease

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By Catarina Saraiva and Allison Bennett July 21 (Bloomberg) — The euro advanced to the highest in two weeks against the dollar as officials said European governments may expand the region’s bailout fund and accept a temporary Greek default, reducing contagion concern. The dollar briefly pared its drop versus the yen on a New York Times report that President Barack Obama and House Speaker John Boehner have reached a budget pact. The Canadian dollar rose to a three-year high versus the greenback and the Norwegian krone advanced as crude oil gained. The Swiss franc fell against most of its major … Read more

Will The U.S. Default Before Greece?

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    Will The U.S. Default Before Greece? By Dirk Van Dijk on July 18, 2011 | More Posts By Dirk Van Dijk | Zacks.com    I thought this was an interesting article on default and earnings by Van Dijk “The fundamental backing for the market continues to be solid. It is important to keep your eyes on the prize. There’s lots of news out there, and much of it is more dramatic than earnings results, but rarely does it have more significance for your portfolio. Earnings are, and are going to remain, the single most important thing for the … Read more