From THE AUTOMATIC EARTH
[...] The real, the main, the major systemic risk is not in the banking or even the economic system. It’s in the political system. And neither of them can or will eventually be saved.
The real systemic risk lies in the fact that politicians the world around operate on the premise that if they don’t rock the cradle of the banking herd too hard, they’ll survive to receive another round of hand outs and serve another term. And another. That and most of them are absolutely clueless when it comes to the field they’re supposed to oversee and regulate. And the only people who can tell them how and what are the lobbyists who work for the very parties they’re there to regulate.
That is real systemic risk. The kind that would affect you yourself. The political system versus the economic system. And they have become hard to tell apart, because they serve the same purpose.
The link to the oil disaster? Halliburton poured cement into “the hole” based on depth information they received from BP. Turned out, the problem was way deeper, and the pressure, therefore, was way stronger. And then it all blew.
What better metaphor for all of you to understand what’s going on in the marketplace today? The EU pours $1 trillion down the hole, but the hole is far deeper than anyone seems to realize. Perfect metaphor.
The markets in the days to come? Volatility rules. While all the stock exchanges had their lofty gains, the euro was at $1.2752 Friday afternoon, and it’s at $1.2757 right now. Does this require any further explanation? We’re counting down the days, weeks, maybe months.
Volatility, chaos, what’s next? Mayhem?!