Wednesday, March 7, 2012

You Thought the Bird Flu Was Contagious!

Yes, Greece, again.

Why all this fuss over a little land in the sun sitting lazily on the Mediterranean? Whitewashed houses full of tourists and wine.

Contagion.

Greece needs to make a payment of €14 billion on March 20. It doesn't have any money (who does?) and will likely default.

It looks as though the private bond-holders are calling the Troika's bluff and putting the International Swap Dealers Association's backs up against the default wall. The bondholders want their money back from their insurance, they do not want to take the 50% haircut.

Those without insurance will not get their money back and will have to scratch out those assets from their balance sheets. Gone.

Then the mess starts to unravel. The light gets shone on Spain and Portugal and worry turns into fear turns into panic and depositers begin to withdraw their savings from institutions causing a bank run. As we saw in September, 2008, bank runs are nasty and require swift action by authorities. But will the contagion be able to be halted this time? After all, last time, countries used their clout to bailout businesses. Now countries are insolvent. Where do we turn to? Mars?

Stock markets and commodities, including gold, slid last night on such worries. The tipping point for all this is sensitive indeed. There is a warning that such a default in Greece will cost the eurozone €1trillion. 

I'm glad we don't print paper anymore, the Green movement would be livid. €1trillion would be a lot of trees.

Let' us all hope somebody comes up with a plan.

Gold in New Zealand dollars: $2061.43 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $40.51 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)
_____________________________________________________________

YOUnique Gold and Silver

Buy small, affordable physical gold and silver or start a savings program towards
physical gold or silver grams for as little as US$25 per month.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service.
Your reference: an-001
_____________________________________________________________


Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

No comments:

Post a Comment