There Must Be Some Great Phone Calls Going On Right Now!
With the “negative watch” rumor now leaked there have to be a lot of ugly phone calls occurring right now! How it leaked is interesting enough but the Merkozy must be going ballistic right now as I can’t see how this helps them no matter the outcome of this week’s decisions. Will they really go […]
All The World’s A Stage
I can’t help but feel that we are watching a performance this week. It feels like the actions, the meetings, and the statements are all very scripted. It seems reasonably clear which ending they are going for, but many of their actions also fit the “alternative” ending so it remains imperative to be cautious. Roles […]
Mortgage QE?
There has been more and more speculation that the Fed is getting ready to launch a new QE program, this one targeting residential mortgages. With the data coming in better than expected, stocks back up, and Plosser and Bullard both chiming in that improving data would make them hesitate or question the need for more […]
Greece – Has The Barber Retired?
There is a Bloomberg story out there stating that the debt negotiations are “complex”. We never believed that the PSI “haircut” was going to get done as a voluntary negotiation. The IIF didn’t have the authority, and having the country take over negotiations has made it even less likely that any haircuts occur without a […]
(ZH) The Hill Just Killed The Market…
http://www.zerohedge.com/news/market-stumbles-conservatives-push-end-imf-bailout I can’t say that I disagree with the bill, but partisan politics is definitely trying to get in the way of what Bernanke tried to get going earlier this week. There have to be a few Europeans pretty mad at us after all our fingerpointing and telling them what they need to do and how easy […]
(SYH) [CPDO] Scheme ‘Grotesquely Complicated’
I have to admit that I had missed the trial in Sydney. I wasn’t aware that it was going on, but do intend to catch up on it. CPDO was quite possibly the worst of all the products. The more leverage, the better the rating. It has been a personal favorite of mine that this […]
Tomorrow, And Tomorrow, And Tomorrow
As Macbeth said, It is a tale told by an idiot, full of sound and fury signifying nothing. Fading the “Grand Plan” rally worked very well. There was a couple days of pain and then generally the market followed a nice path lower. Last week the market had felt oversold and was looking for a […]
Headlines – Today’s, Yesterday’s, And Tomorrow’s
Yesterday China cut rates yesterday potentially as part of a globally co-ordinated central bank plan or co-incidentally because their economy was losing steam or both. I would bet there was communication and that may have impacted timing but with the weak PMI number China did what was necessary for China – as they always do. […]
It’s The Thought That Counts
Stocks moved almost 6% from their overnight lows. The China reserve rate cut was real. The globally co-ordinated swap plan mostly just took a plan that was globally approved in September and cut the rates by 50 bps. It is neither a benchmark rate and it is not clear the program is even being used […]
Lost In The Shuffle…
Great US data. Much better than expected. Clearly a good sign. Monti says IMF loan not being considered for Italy. Juncker says EFSF Capacity may reach 750 billion. Guess he had to come up with some number. Greek debt is not being renegotiated? The globally co-ordinated central bank policy moves have started, and more likely […]
