Posts Tagged ‘euro debt’

Notes From Underground: The Good, the Bad and the Ugly (or Another Spaghetti Western)

July 12, 2011

It is very difficult to find the GOOD in the global financial world, while the BAD and UGLY abound. The GOOD could be “found ” in low interest rates on BONDS and NOTES in the U.S. Yet when you scratch below the surface, the fundamental reason for a 3% 10-YEAR NOTE is nothing to crow about. Poor employment data and the fear of a credit crisis in EUROPE is forcing investors to find shelter in the debt instruments of the U.S., even as the Washington budget circus captures the headlines. The subtext of the GOOD is that the EUROPEAN DEBT DRAMA almost cratered the global equity markets but support was found for the EQUITIES and ITALIAN BONDS when the ECB purportedly intervened in the DEBT markets by buying Italian and Spanish debt.

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Notes From Underground: Bernanke’s Suatainable Trajectory

June 8, 2011

The FED chairman delivers a major address on the economy at the International Monetary Conference hosted by the Atlanta Fed. It seems that the FED is content to stand behind the veil of its dual mandate. Bernanke did a great deal to explain away the transitory nature of commodity price increases, while maintaining that the economy recovery is too fragile and unemployment too lackluster to begin removing the language of … “economic conditions are likely to warrant exceptionally low levels for the federal funds rate for an extended period.” This is very consistent language and unlike the way the S&Ps reacted to the chairman’s speech, I believe that Bernanke’s language was very soft.

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Notes From Underground: risk on risk off … and so it goes; and so it goes

June 3, 2010

We 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.

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