Monday, June 24, 2013


Our central bankers finally figured out that they had well and truly buggered it over the weekend and this morning began to take steps to undo what had been done to the markets' psyches by sending out Billy the Dud from the New York Fed to explain and sooth troubled waters.  In so doing they double buggered it because a worse choice could not have possibly have been made; but that is a story for another time.

The only thing to talk about today is the ten year which closed at 2.55% an astounding yield above Friday' number.  This is more than a big is a scary move indicating that there simply isn't a bid out there and God knows what that means should this market be as leveraged as it has been in the past, and believe me when I say that I have no idea whatsoever whether that is the case.  It is entirely possible that we could lose a player or two in an environment such as this and if that happens the fall-out will indubitably be international in scope.  So keep your fingers and toes crossed that enough people saw this coming and we ride out the storm, but could have been avoided of course with a bit less naivete on the part of Ben and the boys but a contributing factor had to be The Leader's absolute dismissal of his Central Bank head in public, on television, on a talk show no less. I have been critical of Mr. Bernanke's policies but from all reports he is a good and decent man.  No one deserved that kind of treatment from this street thug of a President.  I wouldn't be surprised if Mr. Bernanke felt he had to say something otherwise all of his credibility and influence would have been destroyed when--unfortunately--given the state of market sentiment silence would have been best.

We now find us in a situation where there is no one either on the monetary or fiscal side with any credibility to undo this market volatility; we must simply wait for it to subside and hope that there isn't a major blow-up as a result.  Of course The Leader, looking at a real mess, has decided to go forward with a major speech on the environment tomorrow as though there are 10 people out there who care and which will almost certainly have the result of reducing business confidence even further--especially if he capitulates to the left wing of his party and kills the pipeline.  Call me a grave digger but I'm surprised there are not more speaking out as to the present state other than Krugman whose effort in the Times today had to set new records for stupidity in the face of markets.  I think this is really bad with a good chance that it gets awful.

Meanwhile, Over There, they are really going to try to send Silvio Berlusconi to jail.  Of course there will be an appeal process that may outlast the Octogenarian but in the mean time his preoccupation with his freedom from a political standpoint, "It's a no good," as Massimo would say. Italy will come adrift again in a month and Greece is already there.  European cooperation is breaking down again with the only good news being that Angela's elections a a month closer the outcome of which is the only thing that counts any more.  And of course there are the Chinese.  Three sagas on at once.  This is really going to test my expertise with the remote channel changer.  Keep tuned.

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