Wednesday, November 23, 2011


The gang's all here, all six grandkids so I'm out of action.  Truly, on this most special of American holidays there is much for which we can all be thankful.  Not the German finance guys, however.  They tried out a fairly big 10 year auction at around 2% today and got coverage of less than 50%.  It was probably an overreach to start but a disaster none the less.  There are no buyers out there.  Everyone is in cash and when the Bund is not the equivalent, there's trouble ahead.

On top of it all, the Fed announcement of a new stress test hit the bank market like a kick you-know-where.  I suppose it's good policy but in times like this one has to wonder about the timing and what has been going on in the regulatory world since the last time everybody jumped through hoops.  Frankly, if I were the Fed I would hate to give the impression that I wasn't on top of things but I suppose it's CYO time all over and this is to be expected.  I just hope that the result isn't, "the patient was quite healthy until we killed him."

Anyway, I'm headed off to marinate some ice cubes at the start of this glorious weekend safe in the knowledge that we in the fly over zone grow our own food and raise out own turkeys...the edible ones... not the kind that thrive in the world's capitals.

See you in a few days.

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