Monday, 11 June 2012

Let the Ponzi scheme continue . . .

The ponzi scheme continues without me today. On a whim I booked a hotel near Alba for some time in the saddle and by the pool.

Frankly I made the decision to avoid the press this morning as I couldn't bare a repeat of the same analysis that we'd seen over the last 6 bailout type events. I almost vomited when I heard a call from some fringe long only fund manager to buy the financials. OK, you go ahead my friend because I know you're a Warren wannabe. Look, yes buy when there's fear by all means, but only do so when you have an advantage. At the moment you're so called Warren trigger is a ponzi scheme ... That's not an advantage. Here's why ... Spain is 12% of the Eurozone, so when the EZ promises 100bn for Spain, then 12bn has to come from Spain itself. What about Ireland, Greece and Portugal? Is this the definition of insanity or not?

What about the structure of this facility. It's for the banks, but goes through the sovereign, so doesn't that mean the Spainish debt just got bigger. I don't know, but I guess that's why markets in the US and Europe, not to mention the Euro itself are down or unchanged as I write this. I'll ignore Asia as they just don't know what to think unless their governments tell them.

I'm here until Thursday. I'll be doing some reading and lots of riding. The hills here look great at the moment. I plotted six rides last night varying between 40 and 80k's. The aim is to do three good rides, which I will upload to the blog on Friday ... So watch out.


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