Wednesday, October 8, 2014


The minutes of the latest Fed meeting were published today and were thought to underscore that Janet & Co. would be reluctant to move too quickly in raising rates…whatever that means.  All concerns regarding the world economy, wars, wholesale slaughter and alike were cast aside and the DOW surged upwards by 275 points proving quite convincingly that all who are involved in financial markets are insane.  The dollar surged as well proving, well, proving that the dollar surged.  Some think this is a good thing; some do not.  WTI collapsed a bit more today despite the fact that the U.S. has just exported its first ship load of crude to a foreign country in 40 years.  There will be more and then comes LNG which will raise the prices.  Some see this as a good thing; some do not.  I, a mere observer of the human condition understand none of it.

Now here is a heads up: I am told that there will be an international agreement initialed this week regarding derivatives between world regulators and the world's largest banks.  Rumor has it that it will require a "cool-down" period in the event of a credit "incident" which will require all participants to delay settlement of derivative contracts for a period of time so that the obligations of a credit-affected institution can be transferred into some other creature thereby effecting the orderly dissolution of said institution.  Some see this as a good thing; some see it as the stupidest, most unworkable idea that has ever been put forward.  I, as a mere observer of the human condition will wait until something can be observed.  I suspect that whatever it is I will not understand it.  I shall be on the alert, however, with pencils sharpened.  I almost can't wait.

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