Some articles of interest

We are certainly living in interesting times. The past week has crossed some important technical thresholds in the financial world and the past week-end has brought us some momentous decisions; namely, the EU has verbally decided not to (that would be to not) bail out Eastern Europe. In the meantime, Bloomberg reports that the cost of insuring the sovereign debt of certain countries such as the USA and Germany has skyrocketed as, indeed, has the cost of insuring the debt of such stalwarts as General Electric and AIG. Why is that important you ask? Because even though the rating agencies have not dared announce new lower ratings on sovereign or commercial debt, everyone and their cousin (as represented by global investors such as pension funds, central banks, investment funds…)  are saying that the likelihood of a blow up is rising.  That’s what rating agencies are there for. That’s what their job is supposed to be. Rating agencies are supposed to advise the public and the market as to what is safe and what potentially is not. But the truth is that rating agencies are playing the political game and haven’t played the role of guardians for many years. That’s why all rating agencies were still giving stellar ratings to Lehman brothers hours before they blew up.

Meanwhile, President Obama has fielded the idea that we may need to ask for a further $750Billion odd bailout… just in case you understand…

Hold on to your hats folks:

Trouble in Boomerland – on the debacle of and devastation in pension plans and savings.

http://www.financialpost.com/news-sectors/story.html?id=1337133

Goldman Marryll almost junk their own traders say

http://www.bloomberg.com/apps/news?pid=20601087&sid=aASkUO0LGIh8&refer=home

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