In December I provided a link to Kyle Bass' November newsletter, "A Global Financial Crisis of Epic Proprtions"
In the letter he describes capital flight being a precursor to default.
CNBC had their turn with Kyle in the video embedded below, “Before a default you’re going to see capital flight”:
Saxo bank updates us on 'The Flight' via Mike Shedlock, Capital Flight From Italy, Greece, Portugal Accelerates; Two Trillion Fantasy; Merkel Weaker Every Week; Crude and Geopolitical Risks
How is this going to end? Do you believe the bullshit soothing words out of the EuroSpruikers trying to save their insolvent banks, the brokers on TV business channels who want some commission, or do you listen to guys who make real money putting their money where their mouth is (and advisory newsletters)? Folks like Bass, Dallo and Hendry?
How is this going to end?
What Will 2012 Bring?
Art is a 40 year trading veteran on the floor of the NYSE working for UBS.
We think a Lehman-like event would most likely be triggered by a run on a bank or a series of banks. The scramble for currency (value) protection among the public could turn into that bank run in the same way that a crowd can instantly turn into a mob. Watch the money flows out of Greece and Italy very carefully. The pot continues to bubble.