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Keyword: bonds

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  • Fed decides on $400 billion bond swap (Operation Twist)

    09/21/2011 11:57:08 AM PDT · by Free Vulcan · 5 replies
    Marketwatch ^ | 9.21.11 | Greg Robb
    WASHINGTON (MarketWatch) — The Federal Reserve on Wednesday, acting in the face of a weak economic outlook, decided to start a program to twist the yield curve by swapping shorter-maturity government securities for longer-dated ones. In a statement, the Fed will buy $400 billion of Treasury securities in the 6-30 year range and sell an equal amount of maturities of 3 years or less. The Fed also announced a new plan to purchase agency mortgage-backed securities with proceeds of maturing securities.
  • Government and Tax Rebellions

    09/18/2011 10:38:59 AM PDT · by Razzz42 · 6 replies
    ...Never will a politician in any country ever question government’s fiscal management. Even in the Euro crisis, governments expect Germany to bail out all of Europe to ease the immediate pain, but again there is no discussion about revising the system. There is just a presumption that if they get through this shortfall, it will all go back to normal. These people actually believe they can continue to promise the Moon, never pay off... ...Even in the Euro crisis, there are people now blaming Britain for not joining the currency. Some now say to make the Euro work somehow it...
  • Obama Moots Limits on Tax Breaks for Muni Bonds

    09/13/2011 7:15:59 AM PDT · by Qbert · 6 replies
    Bloomberg vía Yahoo Finance | September 13, 2011 | Steven Sloan, William Selway, & Richard Rubin
    Bloomberg Link only: http://finance.yahoo.com/news/Obama-Moots-Limits-on-Tax-bloomberg-1619743580.html;_ylt=Ai.HNSRDY7Y6gspmkzcQkPS7YWsA;_ylu=X3oDMTE2ZTRmcnNvBHBvcwMxMARzZWMDdG9wU3RvcmllcwRzbGsDb2JhbWFtb290c2xp?x=0&sec=topStories&pos=7&asset=&ccode=
  • The Irony Behind China's Europe Bond Buying (China is no White Knight)

    09/13/2011 6:37:49 AM PDT · by SeekAndFind · 2 replies
    Pragmatic Capitalism ^ | 09/13/2011 | Cullen Roche
    The headlines driving markets in recent minutes is a rumor about Italian officials talking about bond purchases with China. The media of course will hold China up as though they are some white knight riding in to save these failing European nations. But make no mistake – that is not even remotely close to the truth. On the one hand, China can “help” ease the strains in the Eurozone by buying bonds of various periphery nations. This helps kick the can in the debt game, but does NOTHING to solve it. We know this because we’ve already seen this movie...
  • Michael Pettis: 12 Global Predictions

    08/23/2011 1:02:45 PM PDT · by Kaslin · 5 replies
    Townhall.com ^ | August 23, 2011 | Mike Shedlock
    Via email, Michael Pettis at China Financial Markets shared his outlook for China, Europe, and the world. The overall outlook is not pretty, and includes a breakup of the Eurozone, a major slowdown for China, and a smack-down of the much beloved BRICs. Pettis Writes ... August is supposed to be a slow month, but of course this August has been hectic, and a lot crueler than April ever was. The US downgrade set off a storm of market volatility, along with bizarre concern in the US about whether or not China will stop buying US debt and the economic...
  • Recession Is Not In View But Economy Is Ugly

    08/21/2011 3:18:08 PM PDT · by blam · 25 replies
    Seeking Alpha ^ | 8-21-2011 | Steven Hansen
    Recession Is Not In View But Economy Is Ugly Steven Hansen August 21, 2011 Every day recently, readers have had to digest a growing number of pundits screaming “upcoming recession” giving a cacophony of reasons. Other than a horribly weak economy, there are no major signs indicating an outright contraction. As I have stated previously, a discussion of whether the USA is in a depression would be more pertinent. In a depression, there are no economic drivers for expansion – and the economy flops around (one step forward, on step back). One year ago, we were worried the economy was...
  • Treasurys Head to Record Lows Gold breaks above $1800 & Politicians Refuse to Yield

    08/18/2011 5:28:01 PM PDT · by Razzz42 · 12 replies
    Gold and US Treasurys trading together illustrate the point that the BIG money has not begun to move and is still parking. Corporations are at record highs with over $2 trillion in cash holdings also parking in Treasurys fearful of investing with the future so uncertain. Those who try to predict the future with fundamentals get their head handed to them without exception because they become fixated largely on a couple of issues that are more often than not too domestic. Lacking worldly experience, they become just deer in headlights. A closing tomorrow on the Dow BELOW 10906 will warn...
  • Market punishes U.S. Treasury bonds after poor auction

    08/11/2011 2:23:59 PM PDT · by Qbert · 18 replies
    Reuters ^ | Aug 11, 2011 | Reuters
    Aug 11 (Reuters) - The U.S. Treasury sold $16 billion worth of 30-year long bonds at a poorly received auction on Thursday, with investors showing the weakest overall demand in 2-1/2 years and foreigners largely steering clear. [Snip] Investors submitted bids worth 2.08 times the amount on offer, the lowest since February 2009. A measure of foreign demand -- the indirect bidder category -- accounted for just 12 percent of the sale, the lowest since February 2008.
  • Downgrade U.S. Credit? Why Now?

    08/10/2011 7:02:51 PM PDT · by stolinsky · 14 replies
    www.stolinsky.com ^ | 08-11-11 | stolinsky
      Downgrade U.S. Credit? Why Now? David C. Stolinsky Aug. 11, 2011 On Friday, August 5, Standard & Poor’s, one of the three major credit-rating agencies, downgraded U.S. credit from AAA to AA+. The downgrade was announced after the markets closed, but the reaction was predictable. When markets opened on Monday, gold shot up, reflecting loss of confidence in the dollar and currencies in general, while most stocks fell. The government has been spending money in a way that makes drunken sailors look miserly, first under Bush, and even more under Obama. But what happened now that was any...
  • Leaders scramble to head off 'black Monday' on markets

    08/07/2011 7:55:57 PM PDT · by bruinbirdman · 41 replies
    France 24 ^ | 8/7/2011 | AFP
    World leaders made emergency conference calls Sunday, seeking solutions to the US debt and eurozone crises ahead of a feared disastrous reopening of markets on Monday. In a possible bellwether, Israel's market fell seven percent. World leaders searched Sunday for answers to a global debt crisis, hoping to head off a massacre on markets spooked by an unprecedented US rating downgrade and Europe's swelling malaise. France and Germany called for full implementation of measures agreed at a eurozone summit in July to safeguard the single currency as markets braced for fresh turmoil this week. "President (Nicolas) Sarkozy and Chancellor (Angela)...
  • Pre-Markets ( I don't think this looks good)

    08/07/2011 6:32:02 PM PDT · by Beckett08 · 46 replies
    CNBC ^ | 08/07/2011
    pre-market data.
  • Geithner: S&P showed terrible judgment

    08/07/2011 6:57:45 PM PDT · by Justaham · 65 replies
    Associated Press ^ | 8-8-11 | MARTIN CRUTSINGER
    WASHINGTON – The credit rating agency Standard & Poor's showed "terrible judgment" in lowering the U.S. government's credit rating, Treasury Secretary Timothy Geithner said Sunday. "They've handled themselves very poorly. And they've shown a stunning lack of knowledge about the basic U.S. fiscal budget math," Geithner said in his first public comments about the credit rating decision. Interviewed on CNBC, Geither said that U.S. Treasury securities were just as safe now as they were before S&P announced its downgrade. He predicted that China and investors would remain strong purchasers of U.S. government debt. Republicans have blamed President Barack Obama for...
  • Fibonacci Fate Date for a Bear Bond Market?

    08/05/2011 1:42:29 PM PDT · by george76 · 31 replies
    CNBC ^ | 5 Aug 2011 | Rick Santelli
    One of the greatest technicians of all time was a man named W. D. Gann (1878-1955). He had tremendous success predicting market moves much in advance. Legend has it that he occasionally sent notes to The Wall Street Journal, which accurately predicted tops and bottoms in grain markets months ahead of time. There are two Gann principles that I have always respected. They are that historical prices alone aren’t predictive unless paired with time; and that the “birth dates” of contracts are of major significance. The birth date is the first day a contract, stock, or grain begins trading. And...
  • 'No risk' the US will lose its top credit rating, says Treasury's Geithner (Flashback!)

    08/05/2011 6:47:47 PM PDT · by Nachum · 30 replies · 1+ views
    The Hill ^ | 8/5/11 | Michael O'Brien
    Treasury Secretary Tim Geithner said Tuesday there is "no risk" the U.S. will lose its top credit rating amid a new analysis that revised its outlook on American debt to "negative." Geithner took to the airwaves of financial news networks to push back against a report Monday by Standard & Poor's that lowered its outlook on U.S. debt to "negative," reflecting political uncertainty over whether lawmakers will reach an agreement to address long-term debt.
  • The Migration Dilemma Of The Youth

    08/03/2011 12:32:49 AM PDT · by Razzz42 · 6 replies
    ...I cannot say this in any simpler terms. We are wiping out the future of our children. We have stolen their future, and now the clamors that we cannot default are being heard everywhere to justify the economic implosion on the horizon. How can we grow the economy by reducing spending and raising taxes? This is austerity that shrinks the economy destroying the opportunity for employment among the youth feeding a cycle of economic contraction. I am not advocating just borrowing and not raising taxes. I am saying the entire system is broke and it will implode. Cities are going...
  • China Boldly Goes Where Moody's Has Never Gone Before, Downgrades US From A+ To A, Outlook Negative

    08/02/2011 8:06:30 PM PDT · by SeekAndFind · 34 replies
    Zero Hedge ^ | 08/02/2011 | Tyler Durden
    As was predicted last week, China's rating agency Dagong, unlike its worthless western counterparts, has come through on its threat to downgrade the US in the event a subpar debt ceiling deal was hammered out. As Xinhua reports, 'Dagong Global Credit Rating Co. said Wednesday it has cut the credit rating of the United States from A+ to A with a negative outlook after the U.S. federal government announced that the country's debt limit would be increased." Confirming that not being branded a NRSRO is the only thing that allows a rater to still think straight (and not in terms...
  • Moody's Confirms US Triple-A Rating, Assigns Negative Outlook (More Debt Is Okay?)

    08/02/2011 4:00:11 PM PDT · by Rational Thought · 11 replies
    CNBC ^ | 08/02/2011 | Reuters
    Moody's Investors Service on Tuesday confirmed its triple-A rating of the United States, citing the decision to raise the debt limit, but kept the pressure on the government to move toward a long-term fiscal consolidation plan. The ratings agency affirmed the United States' triple-A rating after congressional lawmakers agreed to raise the country's debt ceiling , which will allow the Treasury to keep servicing U.S. debt obligations. It assigned a negative outlook on the rating, however, in a sign that a downgrade is still possible in the next 12 to 18 months. In a statement, Moody's said there would be...
  • Debt ceiling deadlock could lower interest rates [CNN]

    07/29/2011 7:11:29 AM PDT · by mrsmith · 17 replies
    CNN ^ | July 28, 2011 | Chris Isidore
    ...One other factor that could lift bond prices is that Treasury could be forced to stop selling new bonds, which would limit the supply available for investors. Limiting supply typically helps to lift prices. Thursday's auction of 7-year Treasuries came in with a yield of 2.25%, the lowest rate Treasury has had to pay for notes of that term since last November.
  • The US *WILL* Be Downgraded

    07/28/2011 4:15:05 PM PDT · by verklaring · 35 replies
    Market Ticker ^ | 7-28-2011 | Karl Denninger
    The "most-recent" proposals cut anywhere from nothing in actual spending (Democrat proposal) for 2012 to $90 billion (Republican.) And neither contains any actual cuts on a forward basis - the Republicans are at least honest about it and say they just "hold discretionary non-defense spending at 2011 levels." That's not a cut in spending.
  • Flee to Mars if America commits worst error since 1931

    07/27/2011 2:58:30 PM PDT · by bruinbirdman · 23 replies
    The Telegraph ^ | 7/27/2011 | Ambrose Evans-Pritchard
    President Obama has categorically ruled out a constitutional challenge to the US debt ceiling since I wrote yesterday’s blog. Spokesman Jay Carney said the White House cannot invoke the 14th Amendment, which stipulates that US federal debt “shall not be questioned”. “It’s not available. The Constitution makes clear that Congress has the authority, not the president, to borrow money and only Congress can increase the statutory debt ceiling. That is just a reality,” he said. That is questionable, but let us move on. Obama had previously been vague about this, saying White House lawyers were “not persuaded that is...
  • Valerie Learns About Modern Slavery

    07/24/2011 8:54:05 PM PDT · by krb · 6 replies
    YouTube ^ | 7/24/2011 | StarveMonkeyPress
    Valerie learns about modern slavery (One of those cute educational youtube animations)
  • California's debt rating outlook raised by S&P (Plan to balance budget "largely realistic.")

    07/20/2011 1:36:02 PM PDT · by SeekAndFind · 10 replies
    Los Angeles Times ^ | 07/20/2011 | Tom Petruno
    Standard & Poor's has removed the immediate risk of a downgrade of California's debt rating, saying the state's plan to balance its budget was "largely realistic." S&P on Thursday raised its outlook for California’s rating to “stable” from “negative.” The rating, A-minus, still is the lowest of any of the 50 states. “The negative outlook had been linked to the possibility of a recurring cash deficiency that we now believe the enactment of the fiscal 2012 budget is likely to mitigate for the most part,” S&P said in a report. “Because the state has improved the structural alignment between its...
  • Only Germany can save EMU as contagion turns systemic

    07/19/2011 10:05:39 PM PDT · by bruinbirdman · 4 replies
    The Telegraph ^ | 7/20/2011 | Ambrose Evans-Pritchard
    Europe's leaders have finally run out of time. If they fail to agree on some form of debt pooling and shared fiscal destiny at Thursday's emergency summit, they risk a full-fledged run on South Europe's bond markets and a disorderly collapse of monetary union. "We are heading towards fiscal union or break-up," said David Bloom, currency chief at HSBC. "Talk is no longer enough as the fire threatens to leap over the firebreak into Spain and Italy. "What the market is worried about is Germany's long-term committment to the euro project. If we see unreserved and absolute backing from the...
  • Weiss Ratings Downgrades United States Debt to C-Minus

    07/18/2011 12:38:59 PM PDT · by vikingd00d · 16 replies
    Weiss Ratings ^ | 15 July 2011 | Unknown
    JUPITER, Florida (July 15, 2011) — Weiss Ratings, an independent rating agency of U.S. financial institutions and sovereign debts, has downgraded the debt of the United States government from C to C-minus. The C-minus rating for the U.S. reflects a continued deterioration in the weaknesses cited in the Weiss Ratings release of April 28, 2011, including heavy debt burdens, shaky international stability, and poor economic health. Weiss Ratings senior financial analyst Gavin Magor commented: “Our downgrade today is not contingent on the outcome of the debt ceiling debate in Washington. It is driven exclusively by the numbers, which indicate that,...
  • Rater Egan-Jones Cuts US Debt The Over Weekend

    07/18/2011 11:02:57 AM PDT · by vikingd00d · 7 replies
    Nasdaq ^ | Jul 18, 2011 | Andrew Ackerman and Mark Taylor
    WASHINGTON -(Dow Jones)- Egan-Jones Ratings Co. over the weekend lowered its rating on U.S. debt, the ratings firm's president, Sean Egan, announced Monday. The downgrade is not expected to have a significant impact on the market because the Haverford, Pa.-based Egan-Jones is among the smallest of the nationally recognized rating agencies, analysts said. But it comes as the much larger and more influential ratings agencies, Moody's Investors Service and Standard & Poor's, have warned they too would downgrade the U.S.'s rating if the $14.29 trillion debt ceiling isn't raised soon. In Egan-Jones' ratings analysis, dated Saturday, the firm cited the...
  • This Is What Passes For Democracy In Greece… And America

    07/14/2011 4:51:58 PM PDT · by george76
    zh ^ | 07/14/2011 | Tyler Durden
    Last night I had quite an unexpected surprise. You see, at my hotel here in Thessaloniki, there’s a delegation from some group of the European Parliament called the Committee on Regional Development. They’re here to help… Hey, isn’t that what they always say? The Committee wants to supervise Greece working its way out of the debt crisis and make sure that Greece’s poor are getting the support they need. The hotel’s restaurant was filled with these sycophantic parasites last night– an entire room full of people with a superiority complex who think that they are entitled to make decisions about...
  • Obama Urges Banks to Lower Principals In Lieu of Foreclosure

    07/13/2011 1:55:08 PM PDT · by illiac · 35 replies
    Appraiser News Online ^ | 7/13/11 | Appraiser News Online
    During his Twitter town hall meeting July 6, President Obama said he wants banks and service companies to work with at-risk homeowners to modify their loans — possibly lowering mortgage principals — so borrowers are not burdened by huge debt, HousingWire.com reported. Nationally, home prices dropped 33 percent from the peak before the housing crisis, so many borrowers owe more on their homes than they are worth. HousingWire.com reported nearly 30 percent of current mortgages are in negative equity. Since March 2009, the Obama administration’s Home Affordable Modification Program reduced only about 5,000 mortgage principals. HousingWire.com reported that the Obama...
  • EU: Italy stares into the abyss

    07/11/2011 10:18:09 PM PDT · by bruinbirdman · 7 replies
    Presseurop ^ | 7/11/2011
    "Europe fears for Italy," leads the Financial Times Deutschland as the bloc’s 27 member states hold an emergency meeting in Brussels on Monday July 11. Since the end of last week Italy has been targeted by the markets, and the costs of borrowing in the sovereign debt market are hitting record levels. According to a senior diplomat quoted in the Hamburg daily, EU finance commissioner Olli Rehn is "extremely concerned about the development of the situation in Italy" and is calling for "a comprehensive solution at last to save us from having to deal with one country after another." According...
  • EU: German 'Nein' leaves Italy and Spain in turmoil

    07/11/2011 5:30:37 PM PDT · by bruinbirdman · 8 replies
    The Telegraph ^ | 7/11/2011 | Ambrose Evans-Pritchard
    Italian and Spanish bond yields soared to post-EMU highs in a fresh day of credit turmoil after Germany blocked any meaningful measures to defuse the crisis. Chancellor Angela Merkel called for more "frugality" in Italy, sticking to her script that Rome can solve its woes with an austerity budget. Her finance minister Wolfgang Schäuble said any boost to the EU's €500bn (£440bn) bail-out machinery was "out of the question". Mr Schäuble denied reports that Berlin was ready to empower the fund to purchase Spanish and Italian bonds pre-emptively on the open market, a move seen by experts as vital to...
  • Barry Bonds, Roger Clemens and Lance Armstrong go into a bar together.....

    07/08/2011 6:20:10 PM PDT · by beebuster2000 · 35 replies
    self | july 8, 2011 | self
    thats as far as i got, you take it from here. slow night in our house, obviously
  • Bill Gross Just Said The Magic Phrase, And The Market Just Jumped (QE-3 Coming)

    06/22/2011 9:55:10 AM PDT · by blam · 7 replies · 1+ views
    TBI ^ | 6-22-2011 | Joe Weisenthal
    Bill Gross Just Said The Magic Phrase, And The Market Just Jumped Joe Weisenthal Jun. 22, 2011, 10:59 AM In a tweet, Bill Gross of PIMCO just predicted that QE3 would be revealed in August at Jackson Hole. That tweet hit at 10:23. On that prediction, stocks just jumped. No wonder they call him God.
  • AG, treasurers warn CA schools about mishandling construction bonds [misspent proceeds]

    06/17/2011 3:52:07 PM PDT · by DeaconBenjamin
    California Watch ^ | June 17, 2011 | Corey G. Johnson
    California school districts are using construction bond money to cover day-to-day operations and in other ways that regulators say misuse taxpayer money and violate state and federal law. In recent weeks, the state attorney general's office and county treasurers have issued warning letters to school officials after seeing an uptick in unauthorized district bond deals that saddle communities with higher debt payments. Two audits at the Sweetwater Union High School District in Chula Vista, for example, found the district borrowed and repaid $40 million from its construction bond money in the 2009-10 school year and is looking to borrow $58...
  • Greece isn’t priced in, and neither is Ireland (nor Portugal, Spain, or Italy)

    06/16/2011 10:08:30 AM PDT · by Free Vulcan · 1 replies
    Marketwatch ^ | 6.16.11 | Staff
    WASHINGTON (MarketWatch) — It’s not a huge shock that Greece is struggling to implement a new austerity package and that Europe’s most important institutions — Germany, France, the European Central Bank and the European Commission — can’t agree on what to do next. But the lack of surprise doesn’t, as has been argued elsewhere, mean the problems of Greece have been priced in...And of course, the problem isn’t just Greece, it’s Ireland, it’s Portugal, it’s possibly Spain or even Italy as well.
  • Small Business Confidence Shrinks

    06/15/2011 10:55:28 AM PDT · by Kaslin · 11 replies
    Townhall.com ^ | June 15, 2011 | Mike Shedlock
    In spite of all the yapping about banks not lending to small businesses, only 8% of businesses report getting loans as a problem according to the National Federation of Independent Business. In contrast 25% say getting customers is the number one problem. An increasing number of owners cite rising inflation as a problem. Please consider Small Business Optimism Dips Lower in MayThe Index of Small Business Optimism fell 0.3 points in May to 90.9. This month marks the third monthly decline in a row. The proximate cause is the fact that 1 in 4 owners still report weak sales as...
  • Stocks Down for 6th Week, Dow Below 12,000

    06/10/2011 2:24:28 PM PDT · by Brandonmark · 21 replies
    CNBC ^ | June 10, 2011 | JeeYeon Park
    Stocks closed near session-lows Friday with the Dow falling below the 12,000-mark to finish lower for the sixth-consecutive week amid further signs of a global economic slowdown. The Dow Jones Industrial Average plunged 172.45 points, or 1.42 percent, to end at 11,951.91—below the 12,000-mark, the first time since Mar. 18, 2011. This week marks the Dow's worst losing streak since 2002. The S&P 500 slid 18.02 points, or 1.40 percent, to finish at 1,270.98—breaking the 1,275 support level. The tech-heavy Nasdaq slumped 41.14 points, or 1.53 percent, to close at 2,643.73. The Nasdaq is now in the negative territory for...
  • Contrary To Keynesians, Cuts Help Default-Prone

    06/09/2011 5:10:57 PM PDT · by Kaslin · 8 replies
    IBD Editorials ^ | June 9, 2011 | ALAN REYNOLDS
    A wise person once explained that good judgment can only be attained through experience, and experience often comes from bad judgment. There was a profusion of bad judgment behind the latest European debt crises. What did we learn? One thing we should have learned is that a credible plan for deficit reduction requires action, not words. Overly indebted countries that have actually done something to restrain government spending faced much lower long-term interest rates than those that dissembled and delayed. On the other hand, long-term interest rates can double quite suddenly if such countries reverse course and rack up so...
  • Invest Like Pirate

    06/02/2011 8:49:31 AM PDT · by Kaslin · 11 replies · 2+ views
    Townhall.com ^ | June 2, 2011 | Bill Tatro
    One of the most popular movie series of all-time has been Disney’s Pirates of the Caribbean starring Johnny Depp. Fraught with action, adventure, and danger, these same words can also be used to describe the U.S. Treasury market. In fact, the similarities are almost chilling. If you’re sailing on the high seas and a storm was imminent, more than likely you would head for the nearest port. Trying to ride out the storm would probably bring death and destruction, and anything would be better than that. However, if the port within reach was occupied by Johnny Depp and his collection...
  • Moody's Downgrades Greece To Just A Few Notches Above Default: From B1 To Caa1, Outlook Negative

    06/01/2011 3:39:11 PM PDT · by dynachrome · 10 replies
    Zero Hedge ^ | 6-1-11 | Tyler Durden
    Moody's Investors Service has today downgraded Greece's local and foreign currency bond ratings to Caa1 from B1, and assigned a negative outlook to the ratings. The rating action concludes the review for possible downgrade that the rating agency initiated on 9 May 2011.
  • Govt to lose $14B of auto bailout funds

    06/01/2011 12:08:11 PM PDT · by Nachum · 16 replies
    Associated Press ^ | 6/1/11 | Staff
    Washington – The Obama administration said Wednesday that the government will lose about $14 billion in taxpayer funds from the bailout of the U.S. auto industry. In a report from the president's National Economic Council, officials said that figure is down from the 60 percent the Treasury Department originally estimated the government would lose following its $80 billion bailout of Chrysler and General Motors in 2009. The report's release coincides with the administration's efforts to tout the bailout's role in the revitalization of the U.S. auto industry after last week's announcement that Chrysler is repaying $5.9 billion in U.S.
  • They can try to ‘delay and pray’ but the euro is running out of time

    05/29/2011 10:07:55 PM PDT · by Carismar · 8 replies
    London Telegraph ^ | May 29, 2011 | Roger Bootle
    Giving up sovereign currencies is a serious challenge. Exchange rates act as a safety valve. When you remove them, the pressure either has to be reduced or it will find some other way out. In a fixed exchange rate system, such as the ERM, currency speculation could and did break the system. Advocates of the euro project drew comfort from the fact that, by contrast, a full monetary union is immune from such attacks. It was recognised that economic and financial pressure might still find an outlet as countries which diverged from the core had to face higher bond yields....
  • Barry Bonds gives gift to Bryan Stow (Tuition for his kids)

    05/25/2011 5:46:51 PM PDT · by FlJoePa · 5 replies
    ESPN ^ | 5-25-11 | Ramona Shelburne
    Donations, contributions and other efforts have poured in after San Francisco Giants fan Bryan Stow was beaten in a Dodger Stadium parking lot on Opening Day. But one quiet gesture has especially touched Stow's family, something that will affect his two children years down the line. Former Giants star and embattled figure Barry Bonds has volunteered to pay for the college education of 12-year-old Tyler and 8-year-old Tabitha. "It was extraordinary of Barry Bonds, I thought," Stow family attorney Thomas Girardi told NBC Bay Area KNTV. "He didn't say anything about it to the press. This was just a gift...
  • Albert Edwards: We're Not Ready For The "Frenzied Orgy Of Balance Sheet Debauchment" Yet

    05/25/2011 8:36:48 AM PDT · by blam · 6 replies
    TBI ^ | 5-25-2011 | Gregory Whiteg
    Albert Edwards: We're Not Ready For The "Frenzied Orgy Of Balance Sheet Debauchment" Yet Gregory White May 25, 2011, 8:02 AM We're still in line for one more deflationary step before the Fed and other central banks engage in the next level of monetary expansion that creates rampant inflation, according to Societe Generale's Albert Edwards. Edwards sees government bond yields falling again, before governments and central banks engage in a new pro-inflationary movement. He cites Russel Napier's opinion, that the S&P 500 is set to fall to 400, but suggests this move will be coupled with a decline in bond...
  • DEBT CEILING? $35 Billion In 2 Year Treasurys Price As Primary Dealers Take Down Half,

    05/24/2011 11:57:12 AM PDT · by Snuph · 8 replies
    zerohedge.com ^ | 05/24/2011 | Tyler Durden
    The fact that the US is at the debt ceiling, and every incremental dollar of debt issued has to be met with a comparable underfunding in retirement funds is not bothering the SecTres (at least until August 2 at which point all mechanisms to delay the ceiling breach expire). Which is why today's auction of 2 Year paper passed with barely a glitch: $35 billion (CUSIP QZ6) priced at 0.56% (89.7% allotted at high), the lowest yield since December 2010. The Bid To Cover was a sizable jump to recent auctions, coming at 3.46, nearly half a turn higher than...
  • Next Danger: "Splash Crash"

    05/23/2011 10:33:25 AM PDT · by george76 · 21 replies
    barrons ^ | MAY 21, 2011 | JIM MCTAGUE
    Markets are ill-prepared for a high-speed trading disruption that might simultaneously affect stocks, commodities, bonds and other assets. Last year's Flash Crash was a hair-raising experience for stock and commodities investors—comparable to the sudden descent of a large airliner from 38,000 feet to tree-top level, followed by an equally sudden and steep ascent. A trillion dollars in equity vanished in minutes, as stock futures, exchange-traded funds and equities plunged. I've recently heard from a computer-trading expert warning of the very real possibility of a more widespread and catastrophic "splash crash," a dislocation by high-speed trading computers that could simultaneously splash...
  • US Backs Egyptian Bond Issuance, Gives New $1 Billion Issue "Sovereign Guarantee"

    05/23/2011 11:28:12 AM PDT · by mojito · 30 replies
    ZeroHedge ^ | 5/23/2011 | Tyler Durden
    Just because the US is having so much success convincing the world its debt is...good,...the good old US of A has now decided to backstop the debt of...Egypt. Bloomberg reports: "Egypt plans to raise $1 billion by selling Eurobonds this year to diversify borrowing and finance a widening budget deficit after its economy was rocked by the worst political crisis in 30 years. The five-year bonds will be backed by a U.S. “sovereign guarantee,” Finance Minister Samir Radwan said by telephone from Cairo today...President Barack Obama promised last week $2 billion in loan guarantees and debt forgiveness." And when it...
  • Behind Gov. Jerry Brown's 'wall of debt' lies a moat of bond obligations

    05/20/2011 8:25:34 AM PDT · by SmithL · 8 replies
    Sacramento Bee ^ | 5/20/11 | Dan Walters
    Gov. Jerry Brown says California has a "wall of debt" that must be reduced – and is now using it as his chief rationale for a temporary boost in taxes. At the same time, however, he is proposing to borrow billions more by issuing some of the bonds that voters have authorized for public works projects. And therein lies a rub. Brown's "wall of debt" refers mostly to an estimated $35 billion in loans and deferred payments that former Gov. Arnold Schwarzenegger and the Legislature adopted to paper over the state budget's chronic deficits. However, Brown's revised budget also notes...
  • The Core Inflation Fudge

    05/17/2011 6:29:26 PM PDT · by bruinbirdman · 9 replies
    Forbes ^ | 5/16/2011 | Brian Domitrovic
    Heard a lot about “core inflation” from Federal Reserve chairman Ben Bernanke lately? You haven’t, because two months ago his handlers had him stop using the term. Now he uses substitutes, such as “headline” versus “underlying” inflation. What’s with the jargon? Everyone knows that prices are going up. Corn on the cob that used to sell a dollar a bushel is now a dollar each. Talk about core inflation: These days even cobs (which feed pigs, after all) at the center of the fruit of the stalk are worth a pretty penny. Everything’s up — tomatoes, bacon, gas, you name...
  • Two Chinese Bond Auctions Fail (and you think we have problems)

    05/16/2011 12:09:44 PM PDT · by SeekAndFind · 18 replies
    Zero Hedge ^ | 05/16/2011 | Tyler Durden
    And while the US is no longer allowed to auction off debt, in China the PBoC appears to be no longer able to auction off debt. As Business China reports, "the central bank scheduled the auction of RMB 20 billion worth of one-year treasury bonds and RMB 10 billion in six-month bonds on the country’s interbank bond market for May 13. But banks, faced with tight liquidity, only purchased RMB 11.71 billion worth of one-year bonds and RMB 9.63 billion worth of six-month bonds, the report said." In other words, there was a nearly 50% miss on the 3 month...
  • Goldman Goes Long US Government Debt (Even as PIMCO Raises bet against US Government Debt)

    05/10/2011 1:17:09 PM PDT · by SeekAndFind · 22 replies
    CNBC ^ | 05/10/2011 | John Carney
    Goldman Sachs dramatically increased its exposure to debt issued by the US government and government-sponsored agencies like Fannie Mae and Freddie Mac in the first quarter of this year, apparently bucking the trend of some of the biggest bond traders to short US Treasuries. At the end of the first quarter of this year, Goldman owned just over $100 billion of US government and federal agency debt, according to it's latest quarterly filing with the Securities and Exchange Commission. That's a $15 billion increase over the fourth quarter of 2010 and a $21 billion increase over its holdings during the...
  • 'Illegal' Treasuries: Could They Happen and Who Would Buy Them?

    04/22/2011 6:06:31 PM PDT · by The Magical Mischief Tour · 17 replies
    The Atlantic ^ | 04/22/2011 | The Atlantic
    Would you buy a bond guaranteed by the full faith and credit of the United States if its existence also breached U.S. law? This seemingly crazy concept might sound ridiculous, but bizarre times may call for bizarre measures. As a result, this week, Citi analyst Brett Rose (via Business Insider) suggested that the Treasury could resort to an unlikely worst-case scenario: it could just issue more Treasury securities in violation of the law. Could This Really Happen?