EU bank failures will crash Wall Street — again

Obviously.

Unfortunately, they're been trading about as well as Steve and his 1000 points out of the money shorts.

Whoops.

No, actually, I've been much better than Golden Slacks.

PS: What's an "out of the money short"? Englighten.

I think the global economy is going to be a roller coaster for years. Why? Because dysfunctional political systems have left us with no adults in charge -- anywhere in the developed west.

Consider this excerpt from a story on Bloomberg yesterday entitled, "Fomrer JPMorgan Commodities Trader Bombell Starts Hedge Fund":

"For the next five to 10 years, we are likely to be in a very disjointed marketplace, where politicans lurch from one crisis to another. You need tactical traders and people who are mentally flexible," said Damien Bombell.

Now this is not just some analyst mouthing off - this is a trader who is out raising money to back his strategy -- and he thinks he can raise at least $200mm right off the bat.

I think the world economies are going to collapse, I'm afraid. Whether it will be one mega event or a series of smaller, seemingly disjoined events, who knows. But the economic landscape is going to look very different in 2014 or 2015 than it does now -- it has to.

There are no jobs, the old industries are either dying or face too much risk, and the leading government Treasurys have all been plundered to point where they can no longer prop up banks, car makers, nuclear power plants, fossil fuel developers and other recipients of "crony capitalism."

We have gone too far in the direction of irrationality. Sustainable business practices are the future.

The Great Bubble is unwinding, and it is not finished unwinding by far. It started under St. Ronald, culminated under George II, though Billy Bob Clinton did have a hand in it.

The first thing that is going to be done is to rein in the banks; we're seeing that now. The inevitable Greek Default will lead to a minimum 50% haircut on outstanding debt, and it will seriously affect Spain, Ireland, and Italy, though really only Ireland was guilty of proflagacy: Spain ran a budget surplus before the real estate implosion, and Italy, though it has a lot of debt, has no problem paying it.

2008 is not over by far.

"2008 is not over by far"

Actually it is - it's 2011 - and in about 73 days, it will be 2012. Please get with the program.

I'm caught in a time warp caused by excess gravity in midtown.

this will really suck for the real estate market, especially at the high end. I have no personal pity for bankers and traders, but from the real estate viewpoint they are a big part of demand. emerging market currencies weakening against the greenback is not helping either.

> No, actually, I've been much better than Golden Slacks

Right, 1300 points off on those dow 10,300 shorts.... I stand corrected. You lost even more than we thought...

(and so much for me being on ignore... but, hey, honesty was never steve's strong suit)