Last week’s FOMC meeting proved BORING and left me speechless … but not thoughtless. The only phrase of significance was the use of “RELATIVELY SOON” in placing some forward guidance to the beginning of quantitative tightening (h/t Boockvar). We have no idea what “relatively soon” means but I continue to ask: WHY WAIT? Yes, it may be because the FED is nervous about the potential of DEBT CEILING caused by a Congress filled with know-nothings and do-nothings clogging the day-to-day financing of government operations.
Posts Tagged ‘debt crisis’
Notes From Underground: I Knew I Would Return
August 2, 2017Notes From Underground: “Everybody’s Talking At Me I Can’t Hear A Word They’re Saying…”
December 1, 2011It was a day of dueling flapjawing as the European elite was out talking about everything that needs to be done to save the EURO and Sarkozy promising that there would not be any European defaults. Again to paraphrase Jimmy Breslin: Sarkozy is a little man in search of a balcony. The time for public orations is past and the call to action is immediate and real. Global investors don’t want any more rhetoric. Next Friday is considered the day of reckoning but if the EUROCRATS have any sense all the needed policy will have been put in place by the December 9th meeting so that the markets will have absorbed the “shock and awe” and there will be no disappointment.
Notes From Underground: Sarkozy will borrow Trichet’s Mask and go as Marshal Petain for Halloween
October 30, 2011The more things in Europe are reported as “calming,” the stranger the news stories that emanate from the various European capitols. In the weekend Financial Times it was reported that President Sarkozy told his citizens that they needed to act more like Germans. If France is to avoid slipping into a terrible sovereign DEBT CRISIS the French are going to have to adopt German-style frugality and a better work ethic. Sarkozy believes that the 35-hour work week must change for as France worked less, the Germans invoked the HARTZ IV program of structural changes to its labor force. Under the leadership of Gerhard Schroeder, the German unions voted for labor austerity in exchange for business not exporting jobs to lower-cost regions in Eastern Europe.
Notes From Underground: SettingThe Record Straight … Fair is Only a Line in Baseball
August 2, 2011The word out of Washington about the BUDGET RESOLUTION is that taxes ought to be raised out of fairness. The President of the U.S. is consistently talking about fair. Give up that specious argument. Is it fair that the savers of this country are being punished so as to bail out the WALL STREET TOO BIG TOO FAIL BANKS? Is it fair that an incompetent Treasury Secretary was allowed to obtain the Treasury position even though it appeared that he cleverly tried to avoid paying taxes? Is it fair that the Wall Street banks were bailed out while mortgage paying homeowners were granted no relief against the coming exploding ARMS mortgages that have worsened the foreclosure problems and continued being an albatross around the neck of the economy?
Notes From Underground: BRUSSELS TO WASHINGTON–HOW MANY ROADS CAN A CAN BE KICKED DOWN?
July 24, 2011Last 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??
Notes From Underground: risk on risk off … and so it goes; and so it goes
June 3, 2010We were back in form today as the risk on profile was back on. The EUR/YEN was well-bid as risk was the theme, but we want to watch the YEN to see if the correlation of YEN as the risk barometer is beginning to breakdown with the present political developements in Tokyo taking its toll. The S&PS Wednesday put on a significant rally to solidify the risk on profile.