LIARS

Liars

Last Friday’s monthly NFP data wasn’t the only piece of news that hit the tape.  By Friday’s last trade the indices had closed unchanged or barely positive because more news from Greece was rattling the European banking sector: if it didn’t get lower bailout rates pronto Greece it threatening to leave the European Union, which would lead to a default of its debt.
 
The “rumor” was made in a German newspaper that claimed a meeting was being held over the weekend to fashion a solution.  When confronted about this rumor, all high ranking European officials denied the meeting was taking place.  Moreover, they claimed the very idea was crazy.
 
As it turns out, the German newspaper was correct and the European officials flatly lied about the matter.
 
An earlier example of lying is found here and concerned the Portugal bailouthttp://ca.finance.yahoo.com/news/Market-jitters-bring-capress-2621033042.html?x=0
 
On March 29, when speculation swirled that Portugal needed a bailout, Prime Minister Jose Socrates denied — again — that that would happen despite clearly unsustainable market pressures.

"I'm sick of saying we won't" be requesting help, he told journalists.

Just eight days later, in a chastened appearance on national television, Socrates did just that.

For Jean-Claude Juncker, the prime minister of Luxembourg, the threat of immediate market turbulence means the usual norms of transparency don't apply.
"When it becomes serious, you have to lie," Juncker, who as the chairman of the regular meetings of eurozone finance ministers is one of the currency union's key spokesmen, said in recent remarks.

Was the threat of Greece leaving the EU serious?  Yes.  Was a resulting default serious? You betcha!  And what happens “When it becomes serious…?”  According to Mr. Juncker, “you have to LIE.”
 
Regarding the secret meeting that was denied we read here
http://blogs.wsj.com/brussels/2011/05/09/luxembourg-lies-on-secret-meeting/
 
So why the lie?
 
“I was told to say there was no meeting,” said Mr. Schuller, reached by telephone Monday. “We had certain necessities to consider.” (Mr. Schuller is the spokesman for Luxembourg Prime Minister Jean-Claude Juncker.)
 
Such as?
 
Evening in Europe is midday in the United States. “We had Wall Street open at that point in time,” Mr. Schuller said. The euro was falling on the Spiegel report, which had overhyped the meeting. “There was a very good reason to deny that the meeting was taking place.” It was, he said, “self-preservation.”
 
If someone were to say that this market is rigged; would you think he is a crack pot?  There are many examples to be sure but this is a beauty: (paraphrased) Wall Street was open and we sure can’t allow reality to ever affect to market.  No sir – just LIE!
 
I wonder how “serious” the upcoming situation will be regarding the US debt ceiling.  I wonder if Tax-Cheatin-Timmy will lie as well.  Surely the lil-ole stock market will be open and equities may fall, so be prepared for an avalanche of lies from everyone.
 
Trade well and follow the trend, not the so-called “experts.”
 
Behold the age of infinite moral hazard! On April 2nd, 2009 CONgress forced FASB to suspend rule 157 in favor of deceitful accounting for the TBTF banksters.
 

 

   

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