I don’t believe that, but it feels good to write a headlline like Zerohedge does.
The crew at Zerohedge writes some seriously interesting stuff. It’s too end of world for me, but I see links all the time from people I trust and I click.
I also get asked way too much for my opinions on this heady stuff.
My overall take of where we stand today is the banking system is not broken. The markets are not broken. They are rotten. If they were broken, they would get fixed because it would be too profitable not to fix. There are banks at all-time highs right now that did not need TARP. There are going to be banks that lend you money with a credit score below 720.
I have seen broken…it was the Phoenix real estate market. You woke up in 2009 and were 30-40 percent poorer than you did in 2008 even if you were not in the real estate business. That sucks. If you used leverage you were broke. You wanted the banks to fail in the hopes that they would forget you owed them money.
MF Global $MF is bad and Jon Corzine is a dangerous financial terrorist. But, Jon is friends with Obama and he will get a slap on the wrist at best. There will be another MF Global and it will make MF Global look like wimps.
It could happen tomorrow. It could happen in 2012.
But, hundreds of securities will triple in the aftermath and you won’t need to know the first thing about a bank or shortselling.
The Romans satisfied the crowds with gladiators, we get wimpy ultimate fighting.
I think 2012 is the year of a witchhunt and those are not good for markets.
Nothing is ever perfect. That’s the opportunity!