from Wealth Watchman:
Syriza Lights the Molotov Cocktail
Well, brothers, it has finally begun. The moment that all of us “crazy” stackers have stacking silver for in the first place, has now arrived: the beginning of the end of Bretton Woods II, is upon us. For the Greek referendum(which I predicted over 6 weeks ago) has now been announced, and officially approved.
What more is there to say that hasn’t already been said? Everything is about to change. So many aspects of life that literally everyone you know(and perhaps even you yourself), takes for granted, are about to shift gears forever. It’s not that big of a deal though, right? Everyone’s prepared for this titanic collapse already, aren’t they?
The truth is that no one’s prepared for what’s happening! In fact, just last night, my brother had a disturbing conversation with a stranger, who was FREAKING OUT over Greece! This man was literally beside himself with fear. And what was the reason for this man’s terror? Ugh, that’s the worst part of all…
Getting Greece Wrong
Apparently this poor sap wouldn’t stop freaking out about Greece, because he’d personally just invested $15,000 in Greek equities(that he couldn’t afford to lose)!
“You’ve gotta be kidding me, Watchman! Why would any living person with a functioning brainstem actually sink good money into Greece right now?”
I know, right? Wait though, this man’s reasoning will astound you. For you see, in his mind, Greece was cheap! After all, he thought that things had gotten so bad there over time, that he felt he would “get the most for his dollar” by playing the Greek story!
This man thought:
That things had been so bad for so long, that it “obviously” couldn’t get any worse!
That Greece was so low, it had simply reached a price bottom.
That the can would be kicked yet again.
That central banks would again sprinkle their magic credit dust, causing both confidence and economic activity to fly.
Brothers, pay attention to every one of those lines, and then ask yourself:
Have you thought any of those things as well during the past few months?
Be honest, now! I daresay that many of us have been tempted to think them too.
Even though all of us in this space have known how the game would end in Greece, so many still predicted that “the can would be kicked’. After all, it had happened so many times, that even those who knew what was happening, had almost become completely apathetic to Greek events…
That’s precisely why last weekend’s announcement was such a big deal: no one was ready for it. No one thought Syriza meant business. Everyone believed that the action of a referendum or exit would simply be “too painful” to actually go through with.
This announcement is now destroying an enormous lie that central planners have been repeating every moment, day after day, for many weeks, in the hopes of forestalling the ultimate panic…
That main lie, of course, being that Greek actions and scenarios were already “priced in” the broader markets, and that there would be no contagion to speak of.
Well, hmm, let’s see, does this action appear “priced in” to you?
German bonds, the largest, sovereign debt market in Europe, is trading like a “pink-sheets”, penny stock!
All the while, Germany equities are cratering!
The bonds of other “PIIGS” nations, such as Spain & Portugal are flatlining, and their yields have now basically tripled in the last 60 days.
The Japanese equity market, one of the largest on earth, cratered over 700 points at one moment last night…
The Chinese equity market is taking its quickest plunge in nearly 20 years!
Now, hot off the presses, we learn this:
Remember, just yesterday, the Italian banking sector assured Italy’s citizens that “exposure was low” to Greece, and that the fears of contagion were utterly overblown. Now, apparently that reality has set in, the depth to which some bank stocks have plunged in such short order, forced some of them to halt or delay even trading on their stock market.
The failures on the European scene are now coming hot and heavy…and just think….
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