Today’s RETAIL SALES report was far weaker than anticipated. With Bernanke testifying to CONGRESS (Senate on Tuesday, House Wednesday), will the FED Chairman reveal anything to the “FOOLS ON THE HILL” as the knives will be out as politicians need to be seen as pressuring the FED for the voters back home. As previously reported, the June’s FOMC MINUTES revealed, “Several participants commented that it would be desirable to explore the possibility of developing new tools to promote more accommodative financial conditions and thereby support a stronger economic recovery.”
Posts Tagged ‘Slower Fool Theory’
Notes From Underground: Europe has AUSTERITY and POLITICAL REPRESSION; The U.S., FINANCIAL REPRESSIONNovember 21, 2011
****WARNING: TRADING IN HOLIDAY THINNED MARKETS DURING TURBULENT TIMES CAN BE DANGEROUS TO YOUR WEALTH****
Today’s 2-YEAR NOTE auction in the U.S. received a 4.07 bid to cover ratio, the highest in records dating back to 1992. The rate NOTE BUYERS received was a meager 28 basis points. (Yes, thank you sir, may I have another?) There are those on the FED who are concerned that inflation is a threat and feel that the FED is too easy to meet its stable price mandate. The question becomes: Which financial geniuses are purchasing a TAXABLE INSTRUMENT AT A LOWER RETURN THAN THE INFLATION RATE?