Juggling Dynamite

“If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem”. –J. Paul Getty

And when banks and other lenders have recklessly advanced 100’s of billions to book the appearance of short-term profits?

That which cannot be repaid, never will.  One of these days, that simple fact will take the upper hand over the relentless central bank extend and pretend schemes.  Greece could be the poster child for this revelation in the near future. But whether it is days or months away, truth will have its way. Assets will be marked down, impossible currency unions will break apart and the world will finally rebuild from this crazy, crazy, chapter of debt mania.

With Greek officials hinting they could be forced from the euro and the country’s creditors growing frustrated with the government’s foot-dragging, analysts are asking what might happen if talks break down. Here is a direct video link.

Paul Tudor Jones II loves capitalism. It’s a system that has done him very well over the last few decades. Nonetheless, the hedge fund manager and philanthropist is concerned that a laser focus on profits is, as he puts it, “threatening the very underpinnings of society.” In this thoughtful, passionate talk, he outlines his planned counter-offensive, which centers on the concept of “justness.”  Here is a direct video link.

On the ramp in crude since March, the Canadian dollar (FXC) has bounced nearly 5 cents against the greenback. But as highlighted (in red boxes) below, we have seen other 5-6 cent rallies in the past 3 years which proved just a short term bid amid the sustained weakness of a secular downturn in commodities.
As always we must monitor longer term trends carefully for signs of a turn, but with this month’s short-covering squeeze in crude likely to drown in still mounting supply, the loonie may not be breaking out in a meaningful way anytime soon.