“There is a 65 percent chance of a banking crisis between November 23-26 following a Greek default and a run on the Italian banking system, according to analysts at Exclusive Analysis, a research firm that focuses on global risks.
A domino effect on banks is 65% likely following a Greek default and a run on the Italian banking system according to analysts
Having tested a number of assumptions in a scenario modeling exercise, the Exclusive Analysis team warned it is becoming less and less likely that EU leaders will simply “muddle through” and have made some bold calls with clear timelines on when the euro zone will be thrown into a major financial crisis.”
Via Before It’s News
Federal Judge Rules California School Can Ban Students From Wearing American Flag Shirts During Cinco de Mayo…
“A federal court has ruled that a California public school had the authority to prevent students from wearing clothing emblazoned with pro-American messages on the Mexican holiday Cinco de Mayo.
U. S. District Court Judge James Ware was ruling in a case involving students at Live Oak High School in Morgan Hill, CA, who were banned from wearing American flag t-shirts on the Mexican holiday in 2010.
The judge determined that the Morgan Hill Unified School District did not violate the First Amendment and said that concerns by school officials over possible violence justified censoring the pro-American message.”
Via Weasel Zippers
“Watching the euro melt has been like watching a train wreck in slow motion. You knew it was coming. You know which cars on the train are next line to be mashed. There is nothing you can do to stop it. You can only watch as it happens, with one car after another compressing like a tin can, and all you can do is say, “I told you so,” the entire time.
The whole European currency scheme was both brilliant and crazy. It was brilliant because Europe should have a united currency. In fact, the whole world should have a united currency. Once upon a time, it did. It was called the gold standard. National currencies were just another name for the same core thing — a nationalist spin on a global consensus. If some country had waved around an unbacked piece of paper and called it money, no one would have taken it seriously.”
“PREPARATIONS were under way last night for the break-up of the euro as Europe’s debt crisis spiralled out of control.
As Treasury officials worked through the night to soften the impact on Britain, David Cameron warned that the single European currency was facing its “moment of truth”.
Business Secretary Vince Cable went further and spoke about “Armageddon” while Brussels officials warned that the chaos threatened to plunge us all into a new recession.
Ministers are understood to be deeply concerned that French President Nicolas Sarkozy and Germany’s Chancellor Angela Merkel are secretly plotting to build a new, slimmed down eurozone without Greece, Italy and other debt-ridden southern Euro- pean nations.”
If Romney, Cain Or Perry Gets The Republican Nomination It Is Going To Be An Absolute Disaster For America
“Over the past couple of months, the mainstream media has been telling us that Mitt Romney, Herman Cain and Rick Perry are the “top tier” candidates and that none of the other Republicans that are running really have a legitimate shot at winning the nomination. Well, if either Romney, Cain or Perry wins the nomination it is going to be an absolute disaster for America. The United States cannot afford another four years of Barack Obama. But we cannot afford four years of Romney, Cain or Perry either. All three of them have deep ties to the establishment, all three of them are clueless about how to fix what is wrong with this country and all three of them would continue most of the failed policies of the Bush/Obama era. The United States is running out of time, and if we are going to turn things around we need to make fundamental changes right now. But if either Romney, Cain or Perry wins the nomination we will almost certainly be guaranteed four more years of rapid decline.”
“What China has been doing for years now, is the equivalent of having built thousands of bridges, each one providing diminishing returns to its economy. Even more concerning, China has been building these economic bridges, so to speak, even though when they weren’t necessary.
Consider that the share of fixed asset investment in China, at more than 65%, is the highest for any major economy in modern history. What’s more, China’s own electricity authority recently reported that there are 64.5 million dwellings in China where absolutely no electricity is being used. The investments they’re making are producing little return.”
Via Sovereign Man
“We have read about one Chinese counterfeiter openly bragging about producing 100,000 fake U.S. Silver Dollars per year, and that’s just one counterfeiter. At this point, we are telling all investors of gold, or silver coins, and or any type of precious metal bar to only buy from a reputable U.S. dealer, that has an established track record, and a money back guarantee. We fear this Chinese counterfeit gold, or silver coins, or bars, could be a multi billion dollar a year business, and we greatly fear many innocent investors could be taken to the cleaners.”
Via SHTF Plan
“Yeah, ok. Let’s see what the revisions are next week.
The “big table” from the 15th (it’s a bit more lagged) shows a +51,990 print however, with all of it coming from EUC and Extended benefit roll-ins. The rate of regular claims, which has been declining, has now stabilized — it is not dropping any more. This is bad if it continues and a 390k print is not consistent with job growth. The best you can say is that we continue to see what we have seen in the employment rate table — there’s no improvement happening at all; rather, we’re just rattling around on the floor.”
Via Market Ticker
FFB’s busy month
“The good old PO got an extra $1.5B for the month. Note that the outstanding has been brought up to an even $13b. That number is the legal limit for the PO. They have maxed out the credit card at the FFB.
We’ve been hearing for years that the PO is going broke. Well, we finally reached the finish line. As the following chart shows they have no further borrowing authority and will be insolvent by summer. This means we need a bailout. A pretty big one at that.
This issue has to come onto the table pretty soon or the mail will get very slow. The liquidity problems at the PO could be “fixed” fairly easily by an increase in the debt limit, but that would require congress to act. We all know that congress is unlikely to act on anything during an election year.”
Via Zero Hedge
“The only question we have is how much higher will this week’s 390K number be revised to next week in continuing the BLS one trillion sigma tradition of revising every prior number higher and never lower. As it stands, the 390K is the lowest since April, and a drop of 10K from both the previous print and expectations. In other news Non-seasonally adjusted claims increased by +29,106 to 398,753: this is the second highest number since July. What was also notable is that those on EUCs and Extended Benefits rose by 43K in the past week, an odd reversal to the now persistent issue of 99′ers hitting the cliff. In other news, the previous continuing claims number was revised worse by 24k from 3,683K to 3,707K which means today’s 3,615K number will also see a downward revision soon. Regardless, no matter how one looks at this, the Claims number confirms there is no net job creation, and considering the bloodbath on Wall Street that will occur over the next month which will affect very high paying jobs, the bottom is about to fall out where it hurts the most: tax collections, which means the government will once again be forced to do what it does best: print paper, with the Fed firmly in tow to monetize it. Same old song.”
Via Zero Hedge