Friday, August 13, 2010

Bond Surge Continues

Heading out for the weekend but I wanted to post a few things before I take off. 

The market has been pretty quiet today except for bonds which seem to move higher on an almost daily basis.

Just take a look at the 10 year the past couple weeks:



Pretty historic stuff.

David Rosenberg

Famed economist Daid Rosenberg discusses the likely hood of a "double dip" recession.  He also does a great job explaining why most of the economists have gotten it wrong throughout this crisis. 

What I find humorous here is the two bulltard economists that follow David used the same failed economic analysis that David warned about earlier in the piece as they both attempted to explain why Rosenberg was wrong.

Sigh....Stupidity at it's finest.




Other Reads

10 Reasons to worry.  Great piece from the Wall St Journal why the market may crash.

AP did a story describing how the majority of the TARP bailout ended up going overseas.  This article made me want to vomit but I am not surprised:

"WASHINGTON — The $700 billion U.S. bailout program launched in response to the global economic meltdown had a far greater impact overseas than other countries' financial rescue plans did on the U.S., according to a new report from a congressional watchdog.
Billions of dollars in U.S. rescue funds wound up in big banks in France, Germany and other nations. That was probably inevitable because of the structure of the Treasury Department's program, the Congressional Oversight Panel says in a new report issued Thursday."

- Hoenig lashes out at his Fed colleagues.  Disagree with his argument but it's interesting to to see that there is some definite tension within the Fed.   I guess this is to be expected as their recovery policies continues to fail.

The Bottom Line
I didn't go short today.  I still believe we might get one more burst higher before things unravel.  The bond trade tells you the market is still scared to death as it continues to price in deflation.

Something else that caught my attention today was the drop in the Euro vs. the dollar despite the fact that Germany knocked it out of the park when it announced it's best economic growth in 23 years.

Shouldn't the Euro have taken off on such news?  Hmmmm...Trouble in PIIGSville perhaps?  Greek debt sold off again today. 

Keep your eyes on what's going on in Europe.

That's it for me this week folks.  Been an interesting week to say the least.  I hope everyone has a wonderful weekend!

Edit:

Just picked up this classic rant from Rick Santelli who actually quoted Zero Hedge in the piece.  The housing nightmare is described perfectly in a nutshell by Rick in the last 2 minutes of the video:

2 comments:

getyourselfconnected said...

Have a great weekend!

Jeff said...

YOu too Get

Long week. Got two gigantic ribeyes coming off the grill in a few minutes. Yumnmy!