Posts Tagged ‘dollar standard’

Notes From Underground: LIKE SARTRE, EUROPE IS LOOKING FOR AN EXIT FROM AN EXISTENTIAL CRISIS

July 20, 2011

The perfidy of EUROPE has led down a path of possible financial ruin as the EUROCRATIC ELITE have lived in a fantasy land denying that the markets have had a better understanding of the ills plaguing European finances. Tomorrow, the Brussels bureaucrats and their political comrades will announce what type of program has been crafted to halt the spread of FINANCIAL CONTAGION. The EURO currency was well bid early in the day as the market was breathing a sigh of relief that a genuine plan is in place to stave off default and build a fire wall to protect Italy and Spain. The Italian BTP futures rallied again against the BUNDS. In CASH terms, the Italian 10-years were 14 basis points lower while the BUNDS were 9 basis points higher.

(more…)

Notes From Underground: Bill Dudley refills the PUNCHBOWL (or why New York bankers shouldn’t Head the NY FED)

April 3, 2011

All was right with the markets as the unemployment data was released and for one of the few times in recent memory, the Wall Street analysts, ADP and others were right on target. Private sector job growth continued to improve, and the state and local governments were continuing layoffs to try to balance its budgets. The softest part of the employment data was the average hourly earnings, which were FLAT. This implies that employers are under no stress to lift wages with the unemployment rate at 8.8 percent. The markets took the data in stride as the DOLLAR was rallying on the positive data. With the previous day’s comments from various FED presidents, there appeared some need to lift some of the SHORT DOLLAR positions. The short-end of the yield curve was under pressure, aiding the DOLLAR RALLY and the selloff in the precious METALS. The equities seemed to be basking in the perfect storm for no WAGE GAINS, a mere threat of 1 percent FED FUNDS with an improving JOBS PICTURE doesn’t get any better for the EQUITIES.

(more…)