The euro will fall apart. That the latest expection form the stock market Guru Felix Zulauf.

You were always a big critic of the euro. How goes the crisis?

FZ: Never have debt problems solved by more debt. In Greece, will play an epic drama. The Greeks are broke, its people and the Portuguese are close.

Who's next?

FZ: Spain is still doing well, but the matter will proceed as in Ireland. The Spainish bonds are priced correctly. The ECB manipulates the rates.

Is that all for the crisis countries?

FZ: No, it is missing Italy. Deposits are falling in their banks. We are experiencing a bank run in slow motion. Banks in Italy and in Spain are being refinanced with more short-term funds. Once the ECB stops being the biggest buyer of  government bonds the yields will have to rise.  It go crazy in Italy this year.

Can the Euro take it?

FZ: No. The markets want a breakup of the euro, with a value loss of 40 to 50 percent in the peripheral countries. The politicians want to save the euro. This is only possible with a weak currency and high inflation.

Newsflash: the crisis has spread to Italy. And it will only get worse at this point as Spain is largely ignored for now (until its own mortgage crisis starts making daily headlines like this one, however, where courtesy of the insolvent Cajas which are simply a GSE waiting to be nationalized, the can will be kicked down the road for at least 6-9 months ) and the vigilantes start dumping Italian debt and buying up every CDS available and related to Italy. "We can't go on for many more days like Friday," a senior ECB official said. "We're very worried about Italy." But, but, didn't Draghi just say Italy's banks will pass the second, "far more credible" stress test en masse? Welcome to the second, and final, part of the European insolvent dominoes contagion, the one which culminates with everyone bailing each other out... and the death of the euro currency of course.

..."I did not know then what I learned later, what made me fifteen years later, wait two long weeks and see a stock on which I was very bullish go up thirty points before I felt that it was safe to buy it. I was broke and was trying to get back, and so I waited. That was in 1915."...

Jesse Livermore


After a question on how to become a better investor professional Mr Munger responded, ..“Read history, read history, read history."..

Charlie Munger

..“One must search through a maze of complex and contradictory details to get to the significant facts … Then he must be able to operate coldly, clearly, and skilfully on the basis of those facts.” The challenge for the successful speculator is “how to disentangle the cold hard facts from the rather warm feelings of the people dealing with the facts.” Moreover, “if you get all the facts, your judgment can be right; if you don’t get all the facts, it can’t be right”...

Bernard Baruch


.."Just because you’re taught that something’s right and everyone believes it’s right, it don’t make it right."..


Mark Twain

..“It’s not what you own that will send you bust but what you owe.”..

Anon