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December 8, 2011

Banks Lead Wall Street Down As Market Doubts ECB ‘Bazooka’

I read many headlines from the financial news sections that make me want to say ‘DUH’! This headline is from today’s Yahoo Finance. Even if the European Central Bank (EBC) did have a bazooka, it would make no difference because they are going into financial markets that have been hit with weapons of mass destruction (WMDs).

Many years ago Warren Buffet called derivatives “financial weapons of mass destruction.” He was more right than he knew. The weapons ECB may have in their arsenal will do them no good in a financial landscape where WMDs already have been deployed. Remember, there is a reason the regulators would not declare the Greek debt default a default – it would have triggered the credit default swap event causing the sovereign debt dominoes to begin collapsing, taking everyone and everything down in its path.

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