Archive - Jun 2011

June 29th

Tyler Durden's picture

Mint To Start Selling 2011 American Eagle Silver Coins At 75% Premium To Paper, As Senators Propose Eliminating Capital Gains From Precious Metal Transactions





All those who have been long awaiting the release of the 2011 American Eagle Silver coins by the US Mint can now relax. America's official source of bullion will release the much anticipated 2011 edition tomorrow at noon, with a strict limit of 100 coins per household at the low, low price of...$59.95! Gotta love that physical-paper spread... It is almost as good as the gold-tungsten compression pair trade.

 

williambanzai7's picture

A EURO PLuMBiNG We WiLL Go (The Wisdom The Three Stooges aND MoDeRN FiNaNCe)





This ain't a house, it's a sieve...

 

Tyler Durden's picture

Ugly 7 Year Auction Caps Miserable Week For Bond Bulls





Today's 7 year auction capped a miserable week, in which the 2 and 5 Years auctioned off placed at very ugly terms, although none probably quite as ugly as today's 7 Year. The $29 billion QT0 priced at a 3 bps tail to the when issued, replicating yesterday's action, and pricing at 2.43%, the same as last month, but at a Bid To Cover of just 2.62, the lowest BTC since March 2010 when QE1 was ending and the future was unclear. And like during the past two auctions, the internals were decidedly ugly as Dealers had to take up 56.07% of the amount offered: the most since May 2009, when however the Direct bidder category was a non-factor. Indirects continued their trend of stepping away from all issuance and bought just 32.17% of the bond, the lowest since March 2009. Additionally the hit rate on the indirect bid was a whopping 86%. If anyone has figured out just how foreign banks will step in to fund US bond issuance, please let us know, because we are confused. And Dealers will not be all that excited to have to convert risk assets into paper yielding just over 2%, in the absence of the Fed's vacuum pump... Certainly not at these rates. Slowly, the realization that OT2 is not coming a week ago is starting to soak in as the Treasury complex is finally realizing that Gross was right all along. Exhibit A for the past statement: the performance of the 5 year in the past 3 days, whose 32 bps blow out is the 3rd biggest such move. Ever.

 

ilene's picture

Federal Withholding Tax Data Says US Already In Recession





Then things fell apart. The government was peeling off its stimulus programs, gas and food prices had skyrocketed, and suddenly on May 17 tax collections fell versus the same period last year.

 

Vitaliy Katsenelson's picture

Finding Investment Treasures in International Markets





Wherever you put your money, it’s important to stick to your investment discipline.

 

Tyler Durden's picture

Guest Post: The U.S. Is A Kleptocracy, Too





Yesterday, I noted that Greece Is a Kleptocracy; the U.S. is a kleptocracy, too. Before you object with a florid speech about the Bill of Rights and free enterprise, please consider the following evidence that the U.S. is now a kleptocracy worthy of comparison to Greece: 1. Neither party has any interest in limiting the banking/financial cartel; 2. Our stock markets are dominated by insiders; 3. The rule of law in the U.S. has been divided into two branches: one in name only for the financial Elites and corporate cartels, and one for the rest of us mere citizens; 4. Just as in Greece, taxes are optional for the nation's financial Elites.

 

RANSquawk Video's picture

RANsquawk US Afternoon Briefing - Stocks, Bonds, FX etc. – 29/06/





A snapshot of the US Afternoon Briefing covering Stocks, Bonds, FX, etc

 

thetrader's picture

Financial Reform Destined to Fail-Hoenig





We have heard it all before. Self regulation, too big to fail, must be saved, bail out, tax payer paying the bill etc. Hoenig, not overly positive on the too big to fail institution, gives his view on the subject.

 

Tyler Durden's picture

The Rating Agencies Have Now Been Silenced: Off Balance Sheet MLEC-Style Debt Rollover Plan Will Not Trigger Events Of Default





A few days ago, when we explained that the current iteration of the European bailout plan is nothing but a repeat of the failed MLEC off-balance sheet plan, which was supposed to prevent the subprime bubble from exploding, we wondered just why Europe has settled on this plan. Now we know: it appears that it was the rating agencies, arguably well-padded with $100 bills to compensate their collective conscience, who suggested that this is the only format of perpetuating the global ponzi without Greece being declared an Event of Dafault. Per Reuters: "The whole charm of the French model is that it was worked out in a such way that it will be fine with the rating agencies." There it is: expect headlines to slowly start leaking from S&P et al that the MLEC part deux will actually not be an Event of Default, and so Europe has the all clear to continue kicking the can down the road for several more years courtesy of money that is literally created out of thin air, and pledged by assets that no longer generate virtually any cash flows.

 

thetrader's picture

Spain's Cajas hiding Debt





The biggest Elephant, still around, Spain’s troubled Cajas, are reportedly hiding large amounts of Debt. We have written extensively on the Spanish Economy and the problems it faces. Spain next up? Watch those CDS prices. Translated by Google, El Confidencial.

 

Tyler Durden's picture

Follow Obama's Press Conference About Stuff Live





The teleprompter is expected to prompt stuff about the debt ceiling or something or another momentarily. Nobody really knows or cares. Readers can follow it here.

 

Tyler Durden's picture

Greek Ministry of Finance Is Now Burning





Update: It appears the blaze has been put out for now.

All in a day's work for a country whose people have to carry the fat kleptofascists on their backs. Next up: all other institutional buildings. And yes, this is starting to look like May 6. In the meantime, this should be good for another 100 pips in the EURUSD.

 

thetrader's picture

Greece is fixed, or?





The Greek vote went great. Now we just have to fix the Economy. Remember, the ship is still sinking. After Greece short term liquidity has been “fixed”, we expect the problems in Spain to regain attention. Kathimerini on the Vote;

 

Tyler Durden's picture

Italy Banks Go For The Trifecta On Sigma X





Italian banks and other companies refuse to relinquish the top volume spots on the world's most active dark pool, Goldman's Sigma X. As a reminder, non-open ATS venues like dark pools, represent what the big money is trading when not masked with the churn volume of HFT darlings that provide easy liquidity rebates, and thus massive volume (but absolutely no liquidity). As we reported in the past two days, Intesa, Unicredit and Banca Monte dei Pasci have been consistently among the top traded names, and continue to be so for the third day in a row. Today it may be time to add Enel SpA. Also, Italian CDS in the 175 bps range are likely very cheap now that the law of communicating insolvent vessels means the bond vigilantes will finally shift their attention to an increasingly troubled Italy.

 
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