Banking Interregnum
The central thesis of my Interregnum meme is “the old is dying, but the new cannot be born”. This is because the revanchist forces still fight from their bunkers. Case in point, the Big Banks are fighting Obama on derivative reform.
For credit-default swaps, information about intraday trades and prices has long been controlled by a handful of large banks that handle most trades and earn bigger profits from every transaction they facilitate if prices aren’t easily accessible.
For example, credit-default swaps tied to bonds of companies such as General Electric Capital and Goldman Sachs typically have a pricing gap of 0.1 percentage point between the bid and offer price. That translates into a $40,000 margin for every $10 million in debt insured for five years. Greater price transparency could narrow that gap, lowering costs for buyers and sellers but reducing fees for banks.
Goldman Sachs and the other big trading banks have never liked transparency, because their trading and arbitrage profits have always been based on an information imbalance.
Why would they want to change this?
The Fraud Society is alive and well.
The Fraud Society is alive and well.
It ain’t just the banks, Spankie. For the “contract economists” among us, here’s a little sputum smear to examine macroscopically. Something maybe about the difference and differential between “natural” demand and “fraud-, speculation-, bubble-blowing-induced-and-helium-and-nitrous-oxide-driven” ha-ha “demand?”
“Storage tankers across the globe may be brimming with oil that no one is buying because of the global economic downturn, but the traditional laws of supply and demand don’t always apply to oil prices. Drivers have faced rising prices at the gas pump in recent months, as investors and oil-producing countries hoard supplies in anticipation of a global economic recovery later this year.
The 12 member countries of the OPEC cartel voted in Vienna on Thursday to maintain output at current levels rather than increase supplies in order to bring some relief to consumers, particularly in the gas-guzzling West. The OPEC oil ministers, whose countries account for about 40% of the world’s entire crude-oil supply, also renewed their commitment to stick to their agreed quotas, rather than ship extra oil, as they began doing last April when several members ignored their agreed output limits. OPEC leaders, many of whose economies are heavily dependent on oil exports, have struggled to stabilize prices at a level that suits their own economic needs amid falling demand and rising supplies. Prices had rocketed to a record level of $147 a barrel last July before plummeting to $30 just five months later and beginning a new climb. (See pictures of South Africa’s oil-from-coal refinery.)
Oil analysts believe OPEC’s decisions on Thursday could help push oil prices even higher; oil futures on the New York Mercantile Exchange have risen 36% in just two months, to about $63.46 a barrel on Thursday. And that appears to be on track to achieve targets set by OPEC leaders. Saudi Oil Minister Ali al-Naimi – OPEC’s key power player – said Wednesday that oil prices ought to rise to between $75 and $80 a barrel by the end of the year. “Demand is picking up, especially in Asia,” he told reporters puffing alongside him as he jogged through the streets of Vienna. “The price rise is a function of optimism that better things are coming in the future.”
Read the whole thing here or pick your own source.
Maybe gas prices SHOULD rise, but if so, the spread between a”natural” price and the other one ought to go into the public pool of money needed to address the mess we’re making of our “blue planet, steeped in its dreams,” rather than a 210th-floor 6,000 sq foot “luxury living space” in a tower in Abu Dhabi, or another $3 million birthday party.
Heads on fucking pikes. Until there’s consequences, nothing’s gonna change.
And if you think THIS is a little outre, wait ’til us mules and dray horses and oxen and water buffalo get loaded up with that last intolerable ton of debt incurred to “make whole” the people who are “hurting” because their Bubble Bucks turned back into evanescent miasmas, by giving over decades of future Real Wealth to pay the obligees off.
It ain’t just the banks, Spankie. For the “contract economists” among us, here’s a little sputum smear to examine macroscopically. Something maybe about the difference and differential between “natural” demand and “fraud-, speculation-, bubble-blowing-induced-and-helium-and-nitrous-oxide-driven” ha-ha “demand?”
“Storage tankers across the globe may be brimming with oil that no one is buying because of the global economic downturn, but the traditional laws of supply and demand don’t always apply to oil prices. Drivers have faced rising prices at the gas pump in recent months, as investors and oil-producing countries hoard supplies in anticipation of a global economic recovery later this year.
The 12 member countries of the OPEC cartel voted in Vienna on Thursday to maintain output at current levels rather than increase supplies in order to bring some relief to consumers, particularly in the gas-guzzling West. The OPEC oil ministers, whose countries account for about 40% of the world’s entire crude-oil supply, also renewed their commitment to stick to their agreed quotas, rather than ship extra oil, as they began doing last April when several members ignored their agreed output limits. OPEC leaders, many of whose economies are heavily dependent on oil exports, have struggled to stabilize prices at a level that suits their own economic needs amid falling demand and rising supplies. Prices had rocketed to a record level of $147 a barrel last July before plummeting to $30 just five months later and beginning a new climb. (See pictures of South Africa’s oil-from-coal refinery.)
Oil analysts believe OPEC’s decisions on Thursday could help push oil prices even higher; oil futures on the New York Mercantile Exchange have risen 36% in just two months, to about $63.46 a barrel on Thursday. And that appears to be on track to achieve targets set by OPEC leaders. Saudi Oil Minister Ali al-Naimi – OPEC’s key power player – said Wednesday that oil prices ought to rise to between $75 and $80 a barrel by the end of the year. “Demand is picking up, especially in Asia,” he told reporters puffing alongside him as he jogged through the streets of Vienna. “The price rise is a function of optimism that better things are coming in the future.”
Read the whole thing here or pick your own source.
Maybe gas prices SHOULD rise, but if so, the spread between a”natural” price and the other one ought to go into the public pool of money needed to address the mess we’re making of our “blue planet, steeped in its dreams,” rather than a 210th-floor 6,000 sq foot “luxury living space” in a tower in Abu Dhabi, or another $3 million birthday party.
Heads on fucking pikes. Until there’s consequences, nothing’s gonna change.
And if you think THIS is a little outre, wait ’til us mules and dray horses and oxen and water buffalo get loaded up with that last intolerable ton of debt incurred to “make whole” the people who are “hurting” because their Bubble Bucks turned back into evanescent miasmas, by giving over decades of future Real Wealth to pay the obligees off.
It ain’t just the banks, Spankie. For the “contract economists” among us, here’s a little sputum smear to examine macroscopically. Something maybe about the difference and differential between “natural” demand and “fraud-, speculation-, bubble-blowing-induced-and-helium-and-nitrous-oxide-driven” ha-ha “demand?”
“Storage tankers across the globe may be brimming with oil that no one is buying because of the global economic downturn, but the traditional laws of supply and demand don’t always apply to oil prices. Drivers have faced rising prices at the gas pump in recent months, as investors and oil-producing countries hoard supplies in anticipation of a global economic recovery later this year.
The 12 member countries of the OPEC cartel voted in Vienna on Thursday to maintain output at current levels rather than increase supplies in order to bring some relief to consumers, particularly in the gas-guzzling West. The OPEC oil ministers, whose countries account for about 40% of the world’s entire crude-oil supply, also renewed their commitment to stick to their agreed quotas, rather than ship extra oil, as they began doing last April when several members ignored their agreed output limits. OPEC leaders, many of whose economies are heavily dependent on oil exports, have struggled to stabilize prices at a level that suits their own economic needs amid falling demand and rising supplies. Prices had rocketed to a record level of $147 a barrel last July before plummeting to $30 just five months later and beginning a new climb. (See pictures of South Africa’s oil-from-coal refinery.)
Oil analysts believe OPEC’s decisions on Thursday could help push oil prices even higher; oil futures on the New York Mercantile Exchange have risen 36% in just two months, to about $63.46 a barrel on Thursday. And that appears to be on track to achieve targets set by OPEC leaders. Saudi Oil Minister Ali al-Naimi – OPEC’s key power player – said Wednesday that oil prices ought to rise to between $75 and $80 a barrel by the end of the year. “Demand is picking up, especially in Asia,” he told reporters puffing alongside him as he jogged through the streets of Vienna. “The price rise is a function of optimism that better things are coming in the future.”
Read the whole thing here or pick your own source.
Maybe gas prices SHOULD rise, but if so, the spread between a”natural” price and the other one ought to go into the public pool of money needed to address the mess we’re making of our “blue planet, steeped in its dreams,” rather than a 210th-floor 6,000 sq foot “luxury living space” in a tower in Abu Dhabi, or another $3 million birthday party.
Heads on fucking pikes. Until there’s consequences, nothing’s gonna change.
And if you think THIS is a little outre, wait ’til us mules and dray horses and oxen and water buffalo get loaded up with that last intolerable ton of debt incurred to “make whole” the people who are “hurting” because their Bubble Bucks turned back into evanescent miasmas, by giving over decades of future Real Wealth to pay the obligees off.
It ain’t just the banks, Spankie. For the “contract economists” among us, here’s a little sputum smear to examine macroscopically. Something maybe about the difference and differential between “natural” demand and “fraud-, speculation-, bubble-blowing-induced-and-helium-and-nitrous-oxide-driven” ha-ha “demand?”
“Storage tankers across the globe may be brimming with oil that no one is buying because of the global economic downturn, but the traditional laws of supply and demand don’t always apply to oil prices. Drivers have faced rising prices at the gas pump in recent months, as investors and oil-producing countries hoard supplies in anticipation of a global economic recovery later this year.
The 12 member countries of the OPEC cartel voted in Vienna on Thursday to maintain output at current levels rather than increase supplies in order to bring some relief to consumers, particularly in the gas-guzzling West. The OPEC oil ministers, whose countries account for about 40% of the world’s entire crude-oil supply, also renewed their commitment to stick to their agreed quotas, rather than ship extra oil, as they began doing last April when several members ignored their agreed output limits. OPEC leaders, many of whose economies are heavily dependent on oil exports, have struggled to stabilize prices at a level that suits their own economic needs amid falling demand and rising supplies. Prices had rocketed to a record level of $147 a barrel last July before plummeting to $30 just five months later and beginning a new climb. (See pictures of South Africa’s oil-from-coal refinery.)
Oil analysts believe OPEC’s decisions on Thursday could help push oil prices even higher; oil futures on the New York Mercantile Exchange have risen 36% in just two months, to about $63.46 a barrel on Thursday. And that appears to be on track to achieve targets set by OPEC leaders. Saudi Oil Minister Ali al-Naimi – OPEC’s key power player – said Wednesday that oil prices ought to rise to between $75 and $80 a barrel by the end of the year. “Demand is picking up, especially in Asia,” he told reporters puffing alongside him as he jogged through the streets of Vienna. “The price rise is a function of optimism that better things are coming in the future.”
Read the whole thing here or pick your own source.
Maybe gas prices SHOULD rise, but if so, the spread between a”natural” price and the other one ought to go into the public pool of money needed to address the mess we’re making of our “blue planet, steeped in its dreams,” rather than a 210th-floor 6,000 sq foot “luxury living space” in a tower in Abu Dhabi, or another $3 million birthday party.
Heads on fucking pikes. Until there’s consequences, nothing’s gonna change.
And if you think THIS is a little outre, wait ’til us mules and dray horses and oxen and water buffalo get loaded up with that last intolerable ton of debt incurred to “make whole” the people who are “hurting” because their Bubble Bucks turned back into evanescent miasmas, by giving over decades of future Real Wealth to pay the obligees off.
http://www.bloomberg.com/apps/news?pid=20601087&sid=akW9GQw.X9KM&refer=worldwide
http://www.bloomberg.com/apps/news?pid=20601087&sid=akW9GQw.X9KM&refer=worldwide
http://www.bloomberg.com/apps/news?pid=20601087&sid=akW9GQw.X9KM&refer=worldwide
Morgan,
I’ll see your “bond vigilantes” and raise you an “Asian central bankers”
Note that Brad Setser has been calling BS on the whole “Bretton-Woods II” premise and counting the minutes until the dollar collapses for a few years now. So he’s no mindless dollar/treasuries bull.
Morgan,
I’ll see your “bond vigilantes” and raise you an “Asian central bankers”
Note that Brad Setser has been calling BS on the whole “Bretton-Woods II” premise and counting the minutes until the dollar collapses for a few years now. So he’s no mindless dollar/treasuries bull.
Morgan,
I’ll see your “bond vigilantes” and raise you an “Asian central bankers”
Note that Brad Setser has been calling BS on the whole “Bretton-Woods II” premise and counting the minutes until the dollar collapses for a few years now. So he’s no mindless dollar/treasuries bull.
schism in the soul, schism in the body social, will not be resolved by any scheme of return to the good old days (archaism), or by programs guaranteed to render an ideal projected future (futurism), or even by the most realistic, hardheaded work to weld together again the deteriorating elements. only birth can conquer death – the birth, not of the old thing again, but of something new. within the soul, within the body social, there must be – if we are to experience long survival – a continuous “recurrence of birth” (palingenesia) to nullify the unremitting recurrences of death. peace then is a snare; war is a snare; change is a snare; permanence a snare…death closes in; there is nothing we can do except be crucified – and resurrected; dismembered totally, and then reborn.
-Arnold J. Toynbee
schism in the soul, schism in the body social, will not be resolved by any scheme of return to the good old days (archaism), or by programs guaranteed to render an ideal projected future (futurism), or even by the most realistic, hardheaded work to weld together again the deteriorating elements. only birth can conquer death – the birth, not of the old thing again, but of something new. within the soul, within the body social, there must be – if we are to experience long survival – a continuous “recurrence of birth” (palingenesia) to nullify the unremitting recurrences of death. peace then is a snare; war is a snare; change is a snare; permanence a snare…death closes in; there is nothing we can do except be crucified – and resurrected; dismembered totally, and then reborn.
-Arnold J. Toynbee
This kind of ties to the previous blog entry, one of the great things about the vast “filtered” and indexed mass of “information” or at least semi-ordered bits of locally elevated energy states is that folks like Morgan (and of course the rest of us) can “select” just a veritable TON of cites and references that absolutely prove, beyond peradventure, doubt or discourse, the perfect accuracy and validity of whatever cockamamie notions happen to bubble up into one’s little pea-brain at the moment the Novel Interface (fingertips to kepboard, nose to display) initiates. And if there’s no, excuse the expression, real-world, experience and learning to measure those wild and crazy bleeding-edge notions against, why, there you go again!
So bless the Net and his/her bounty, bless the plethora of self-referencing and cross-reinforce idiocy, bless all us bits of protoplasm that seem bent on sucking ourselves, spinning and spewing gigapachinkos of angry energy, down into the black hole of self-extinction.
Greed is Good, remember? And ten’ll getcha 20, young lady, all ya gotta do is pick which shell the pea is under. Follow the pea now, see, it’s not so hard! Aw, want to try again? 20′ll getcha 40!
This kind of ties to the previous blog entry, one of the great things about the vast “filtered” and indexed mass of “information” or at least semi-ordered bits of locally elevated energy states is that folks like Morgan (and of course the rest of us) can “select” just a veritable TON of cites and references that absolutely prove, beyond peradventure, doubt or discourse, the perfect accuracy and validity of whatever cockamamie notions happen to bubble up into one’s little pea-brain at the moment the Novel Interface (fingertips to kepboard, nose to display) initiates. And if there’s no, excuse the expression, real-world, experience and learning to measure those wild and crazy bleeding-edge notions against, why, there you go again!
So bless the Net and his/her bounty, bless the plethora of self-referencing and cross-reinforce idiocy, bless all us bits of protoplasm that seem bent on sucking ourselves, spinning and spewing gigapachinkos of angry energy, down into the black hole of self-extinction.
Greed is Good, remember? And ten’ll getcha 20, young lady, all ya gotta do is pick which shell the pea is under. Follow the pea now, see, it’s not so hard! Aw, want to try again? 20′ll getcha 40!
Yah, we’re going to see the cost of borrowing rachet higher and higher. We’re almost at the point where Obama has to deliver the bad news and start to balance the budget.
He’s going to try and convince us that the cost savings will come from universal healthcare. The thing that gives me comfort, is that if plan isn’t REAL, the bond market won’t listen, even if the people do.
Yah, we’re going to see the cost of borrowing rachet higher and higher. We’re almost at the point where Obama has to deliver the bad news and start to balance the budget.
He’s going to try and convince us that the cost savings will come from universal healthcare. The thing that gives me comfort, is that if plan isn’t REAL, the bond market won’t listen, even if the people do.
One thing I like about you Morgan is that you never let reality get in the way of your argument. Perhaps Krugman’s comments this morning can give you a clue.
“But it’s hard to escape the sense that the current inflation fear-mongering is partly political, coming largely from economists who had no problem with deficits caused by tax cuts but suddenly became fiscal scolds when the government started spending money to rescue the economy. And their goal seems to be to bully the Obama administration into abandoning those rescue efforts.
Needless to say, the president should not let himself be bullied. The economy is still in deep trouble and needs continuing help.”
http://www.nytimes.com/2009/05/29/opinion/29krugman.html
One thing I like about you Morgan is that you never let reality get in the way of your argument. Perhaps Krugman’s comments this morning can give you a clue.
“But it’s hard to escape the sense that the current inflation fear-mongering is partly political, coming largely from economists who had no problem with deficits caused by tax cuts but suddenly became fiscal scolds when the government started spending money to rescue the economy. And their goal seems to be to bully the Obama administration into abandoning those rescue efforts.
Needless to say, the president should not let himself be bullied. The economy is still in deep trouble and needs continuing help.”
http://www.nytimes.com/2009/05/29/opinion/29krugman.html
One thing I like about you Morgan is that you never let reality get in the way of your argument. Perhaps Krugman’s comments this morning can give you a clue.
“But it’s hard to escape the sense that the current inflation fear-mongering is partly political, coming largely from economists who had no problem with deficits caused by tax cuts but suddenly became fiscal scolds when the government started spending money to rescue the economy. And their goal seems to be to bully the Obama administration into abandoning those rescue efforts.
Needless to say, the president should not let himself be bullied. The economy is still in deep trouble and needs continuing help.”
http://www.nytimes.com/2009/05/29/opinion/29krugman.html
Let us see how much regulation the administration actually puts in place and enforces. Talk is cheap.
I and most reasonable folks would agree that the banks don’t want the regulation – it would keep them from screwing us to the extreme degree they are doing it at this point. Along with who knows what else.
Don’t we own these folks now? Or at least a goodly percentage that would certainly allow for some very significant transparency? Or did I miss something as we handed out trillions ‘o’ bucks to them?
Let us see how much regulation the administration actually puts in place and enforces. Talk is cheap.
I and most reasonable folks would agree that the banks don’t want the regulation – it would keep them from screwing us to the extreme degree they are doing it at this point. Along with who knows what else.
Don’t we own these folks now? Or at least a goodly percentage that would certainly allow for some very significant transparency? Or did I miss something as we handed out trillions ‘o’ bucks to them?
Let us see how much regulation the administration actually puts in place and enforces. Talk is cheap.
I and most reasonable folks would agree that the banks don’t want the regulation – it would keep them from screwing us to the extreme degree they are doing it at this point. Along with who knows what else.
Don’t we own these folks now? Or at least a goodly percentage that would certainly allow for some very significant transparency? Or did I miss something as we handed out trillions ‘o’ bucks to them?
Oops, forgot.
We handed them trillions to socialize their losses…
Oops, forgot.
We handed them trillions to socialize their losses…
Oops, forgot.
We handed them trillions to socialize their losses…
Oops, forgot.
We handed them trillions to socialize their losses…
It’s all about the Branding.
Greed is Good. Greed is God.
Anything less is “Socialism”.
It’s all about the Branding.
Greed is Good. Greed is God.
Anything less is “Socialism”.
It’s all about the Branding.
Greed is Good. Greed is God.
Anything less is “Socialism”.
Jon,
You must admit right now that my argument for the past year is coming true. YOUR GUY – Bill Gross is the one delivering the bad news. Not Krugman’s straw man. YOUR GUY. Dude, do you not remember 1993 – 1994, when the interest rate on t-bills doubled to 8% ?
One more time: YOUR GUY.
Last week, the 30 year mortgage rate jumped 28% OVERNIGHT.
Look, this isn’t the end of the Obama vision – it’s just going to have to paid for. Cut some programs to pay for others. Raise some taxes. Tax healthcare benefits. Push back the SS retirement age. Cut the prescription benefit for upper middle class. Start Medicare later.
But man, the recovery is now “underway” and if suddenly housing sales eat it, and the dollar plummets, and oil and commodity prices shoot back up – Obamanomics will be toast.
The smart thing to do is trim the sails now, let the bond market know right now that he gets it. Make Bill Gross happy.
Jon,
You must admit right now that my argument for the past year is coming true. YOUR GUY – Bill Gross is the one delivering the bad news. Not Krugman’s straw man. YOUR GUY. Dude, do you not remember 1993 – 1994, when the interest rate on t-bills doubled to 8% ?
One more time: YOUR GUY.
Last week, the 30 year mortgage rate jumped 28% OVERNIGHT.
Look, this isn’t the end of the Obama vision – it’s just going to have to paid for. Cut some programs to pay for others. Raise some taxes. Tax healthcare benefits. Push back the SS retirement age. Cut the prescription benefit for upper middle class. Start Medicare later.
But man, the recovery is now “underway” and if suddenly housing sales eat it, and the dollar plummets, and oil and commodity prices shoot back up – Obamanomics will be toast.
The smart thing to do is trim the sails now, let the bond market know right now that he gets it. Make Bill Gross happy.
Jon,
You must admit right now that my argument for the past year is coming true. YOUR GUY – Bill Gross is the one delivering the bad news. Not Krugman’s straw man. YOUR GUY. Dude, do you not remember 1993 – 1994, when the interest rate on t-bills doubled to 8% ?
One more time: YOUR GUY.
Last week, the 30 year mortgage rate jumped 28% OVERNIGHT.
Look, this isn’t the end of the Obama vision – it’s just going to have to paid for. Cut some programs to pay for others. Raise some taxes. Tax healthcare benefits. Push back the SS retirement age. Cut the prescription benefit for upper middle class. Start Medicare later.
But man, the recovery is now “underway” and if suddenly housing sales eat it, and the dollar plummets, and oil and commodity prices shoot back up – Obamanomics will be toast.
The smart thing to do is trim the sails now, let the bond market know right now that he gets it. Make Bill Gross happy.
Jon,
You must admit right now that my argument for the past year is coming true. YOUR GUY – Bill Gross is the one delivering the bad news. Not Krugman’s straw man. YOUR GUY. Dude, do you not remember 1993 – 1994, when the interest rate on t-bills doubled to 8% ?
One more time: YOUR GUY.
Last week, the 30 year mortgage rate jumped 28% OVERNIGHT.
Look, this isn’t the end of the Obama vision – it’s just going to have to paid for. Cut some programs to pay for others. Raise some taxes. Tax healthcare benefits. Push back the SS retirement age. Cut the prescription benefit for upper middle class. Start Medicare later.
But man, the recovery is now “underway” and if suddenly housing sales eat it, and the dollar plummets, and oil and commodity prices shoot back up – Obamanomics will be toast.
The smart thing to do is trim the sails now, let the bond market know right now that he gets it. Make Bill Gross happy.
Morgan-Here is Alan Abelson of Barrons this morning, quoting David Rosenberg:
We were particularly struck in his latest screed by his apostasy on government bonds. In true contrarian fashion, he takes issue with the increasingly popular notion that we’ve been witness to a bubble in Treasuries. “The Treasury market was never in a ‘bubble,’ Dave says. “Nothing that is fully guaranteed and pays a coupon semi-annually with no call or prepayment risk goes into a ‘bubble’ just because it was expensive at the yield’s low.”
He elaborates: “Sentiment never got wildly bullish; the public never became enamored of Treasuries; there were no widespread ownership or ‘new paradigm’ thoughts. At the lows in yield, there were legitimate concerns over a depression-like economic backdrop and deflation.” But the Treasury market never met “the classic characteristics of a bubble,” a la dot-com or housing.
Morgan-Here is Alan Abelson of Barrons this morning, quoting David Rosenberg:
We were particularly struck in his latest screed by his apostasy on government bonds. In true contrarian fashion, he takes issue with the increasingly popular notion that we’ve been witness to a bubble in Treasuries. “The Treasury market was never in a ‘bubble,’ Dave says. “Nothing that is fully guaranteed and pays a coupon semi-annually with no call or prepayment risk goes into a ‘bubble’ just because it was expensive at the yield’s low.”
He elaborates: “Sentiment never got wildly bullish; the public never became enamored of Treasuries; there were no widespread ownership or ‘new paradigm’ thoughts. At the lows in yield, there were legitimate concerns over a depression-like economic backdrop and deflation.” But the Treasury market never met “the classic characteristics of a bubble,” a la dot-com or housing.
Morgan-Here is Alan Abelson of Barrons this morning, quoting David Rosenberg:
We were particularly struck in his latest screed by his apostasy on government bonds. In true contrarian fashion, he takes issue with the increasingly popular notion that we’ve been witness to a bubble in Treasuries. “The Treasury market was never in a ‘bubble,’ Dave says. “Nothing that is fully guaranteed and pays a coupon semi-annually with no call or prepayment risk goes into a ‘bubble’ just because it was expensive at the yield’s low.”
He elaborates: “Sentiment never got wildly bullish; the public never became enamored of Treasuries; there were no widespread ownership or ‘new paradigm’ thoughts. At the lows in yield, there were legitimate concerns over a depression-like economic backdrop and deflation.” But the Treasury market never met “the classic characteristics of a bubble,” a la dot-com or housing.
You are changing the subject. NO ONE is calling bubble.
The big players (including the Chinese) don’t want to be holding long term debt – 30 yr. 15 yr. 10 yr. That’s my point. That’s Bill Gross’ warning.
If we lose AAA status, if the sovereign funds wont buy long term without fatter rates, it is because they are expecting long term devaluation of the dollar. WE ARE PRINTING MONEY.
Your guy. He says, “listen to Morgan.”
Are you listening?
You are changing the subject. NO ONE is calling bubble.
The big players (including the Chinese) don’t want to be holding long term debt – 30 yr. 15 yr. 10 yr. That’s my point. That’s Bill Gross’ warning.
If we lose AAA status, if the sovereign funds wont buy long term without fatter rates, it is because they are expecting long term devaluation of the dollar. WE ARE PRINTING MONEY.
Your guy. He says, “listen to Morgan.”
Are you listening?
You are changing the subject. NO ONE is calling bubble.
The big players (including the Chinese) don’t want to be holding long term debt – 30 yr. 15 yr. 10 yr. That’s my point. That’s Bill Gross’ warning.
If we lose AAA status, if the sovereign funds wont buy long term without fatter rates, it is because they are expecting long term devaluation of the dollar. WE ARE PRINTING MONEY.
Your guy. He says, “listen to Morgan.”
Are you listening?
You are changing the subject. NO ONE is calling bubble.
The big players (including the Chinese) don’t want to be holding long term debt – 30 yr. 15 yr. 10 yr. That’s my point. That’s Bill Gross’ warning.
If we lose AAA status, if the sovereign funds wont buy long term without fatter rates, it is because they are expecting long term devaluation of the dollar. WE ARE PRINTING MONEY.
Your guy. He says, “listen to Morgan.”
Are you listening?
And here’s Tim (not your guy) saying the same thing:
“In his speech, Geithner renewed pledges that the Obama administration would cut its huge fiscal deficits and promised “very disciplined” future spending, possibly including reintroduction of pay-as-you-go budget rules instead of nonstop borrowing.”
http://finance.yahoo.com/news/Geithner-tells-China-its-rb-15396905.html?.v=2
And here’s Tim (not your guy) saying the same thing:
“In his speech, Geithner renewed pledges that the Obama administration would cut its huge fiscal deficits and promised “very disciplined” future spending, possibly including reintroduction of pay-as-you-go budget rules instead of nonstop borrowing.”
http://finance.yahoo.com/news/Geithner-tells-China-its-rb-15396905.html?.v=2
And here’s Tim (not your guy) saying the same thing:
“In his speech, Geithner renewed pledges that the Obama administration would cut its huge fiscal deficits and promised “very disciplined” future spending, possibly including reintroduction of pay-as-you-go budget rules instead of nonstop borrowing.”
http://finance.yahoo.com/news/Geithner-tells-China-its-rb-15396905.html?.v=2
And here’s Tim (not your guy) saying the same thing:
“In his speech, Geithner renewed pledges that the Obama administration would cut its huge fiscal deficits and promised “very disciplined” future spending, possibly including reintroduction of pay-as-you-go budget rules instead of nonstop borrowing.”
http://finance.yahoo.com/news/Geithner-tells-China-its-rb-15396905.html?.v=2
“Your guy. He says, “listen to Morgan.”
Are you listening?”
Geraldo Rivera called. He wants his ego back.
“Your guy. He says, “listen to Morgan.”
Are you listening?”
Geraldo Rivera called. He wants his ego back.
“Your guy. He says, “listen to Morgan.”
Are you listening?”
Geraldo Rivera called. He wants his ego back.
LOL. Just saying.
LOL. Just saying.
Morgan- http://jontaplin.com/2009/06/01/change-of-habit/
Morgan- http://jontaplin.com/2009/06/01/change-of-habit/
Morgan- http://jontaplin.com/2009/06/01/change-of-habit/