Click on the image to watch Yra discuss what Bernanke fears.
Tags:Bernanke, CBNC, Fed, Jeremy Stein, leverage, Rick Santelli, U.S. Treasuries
Posted in CNBC, Fed | 1 Comment »
****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?
Tags:2-year note, CPI, Deutsche Bank, Dollar/Yen, fear, Fed, Japan exports, leverage, Richard Dennis, Simon Johnson, Slower Fool Theory, yen appreciation
Posted in Debt Market, Europe, Japan | 8 Comments »
Another day another crisis in EUROLAND, or the LA LA LAND of Wall Street, which we will know refer to as THE LAND OF MORAL HAZARD. The leaders of the Wall Street establishment have proven again that no risky investment is too big as long it is with OPM (other people’s money). Jon Corzine went all in on a bet on PIIG DEBT in an effort to increase the annual returns at MF GLOBAL. In a ZIRP environment, a clearing house has a difficult time making money because the earnings, which are the overnight float, are so extremely low. In order to generate greater earnings on the FLOAT, greater risks need to be taken so the need to purchase riskier sovereign debt becomes the outlet.
Tags:Alan Greenspan, Bernanke, Debt, default, ECB, EFSF, Euroland, Fed, FOMC, G-20, Goldman Sachs, Greece, leverage, MF Global, moral hazard, other people's money (OPM), Papandreou, PIIG, RBA, referendum, ZIRP
Posted in Debt Market, Europe, Fed | 4 Comments »
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