Posts Tagged ‘debt ceiling’

Notes From Underground: Back From Vacation and Was Subjected To the Government Shutdown

October 7, 2013

As I drove along the Blue Ridge Parkway many of the Federally manned information spots and federally run conveniences were closed. But it did not detract from the grandeur of the Carolina mountains and majestic valleys. The Parkway itself was an allegory for the markets as it winds it way a forest of trees with danger all along the way. It is best to stop at the lookouts along the way as an astute trader/investor would take the time to analyze charts to see where the road leads. The present standoff in Washington has brought profits to the SHORTS, but as Friday’s rally revealed. This market is fraught with danger for bulls and bears alike. More important than the shutdown of some federal government operations is the looming issue of the DEBT CEILING. Many analysts have rightfully pointed out that the government defaulted in 1979 and although Treasury bill yields rose 60 basis points, the overall effect was minimal. Beware of faulty historical correlations.

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Notes From Underground: Let’s Make A Deal … But Will It Be The Full Monty?

July 31, 2011

DON’T SPEAK TOO SOON
FOR THE WHEEL’S STILL IN SPIN
AND THERE’S NO TELLIN’ WHO
THAT ITS NAMIN’
FOR THE LOSER NOW
WILL BE LATER TO WIN
FOR THE TIMES THEY,
THEY ARE A-CHANGIN’

The markets have greeted Sunday’s purported U.S. budget deal with a great sigh of relief as the S&P futures have opened 1.5% higher. At this moment it is difficult to determine what exactly has been agreed. It seems that Boehner was able to placate the “TEA PARTY” caucus for the moment–enough to get some compromise.

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Notes From Underground: BRUSSELS TO WASHINGTON–HOW MANY ROADS CAN A CAN BE KICKED DOWN?

July 24, 2011

Last week, the Eurocrats tried to persuade the markets that it has gathered the strength to deal with the DEBT CRISIS IN earnest. But even with three days to analyze and digest the statements it is still not clear as to how the actual bailout will work. The ultimate question: Who will guarantee all the good credit being established that will allow the EFSF to do its job to insure the markets against sovereign default??

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Notes From Underground: Dominique Strauss-Kahn Arrested on Rape Charges AND FOR THE FIRST TIME IT’S NOT OF A COUNTRY

May 15, 2011

Today’s NOTE‘s headline wrote itself as the history of the IMF and its relationship to stressed emerging markets is replete with acts of “nation violation” in its efforts to ensure that creditors were/are always satisfied–most recent example is Greece. All levity aside, the accusations against DSK have important implications for FRENCH domestic politics as well as the role of the IMF in the current SOVEREIGN DEBT CRISIS plaguing the EU. Last week, the ASSISTANT MANAGING DIRECTOR of the IMF, John Lipsky, announced that he was leaving, thus the leadership of IMF is really¬† going to be in turmoil.

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