Archive - Sep 26, 2012 - Blog entry

Evoking the dark days of 2009 - after a steep and bumpy slide

The divergence in crude oil and gasoline supply fundamentals could mean not even an SPR oil release, unilateral by the U.S. or not, would significantly bring down gasoline prices as people might expect.   

Indeed, it is now clear, via QE 3, that the Fed has gone “all in” in its commitment to money printing. QE 2 put food prices to record highs… what do you think QE 3 (which is unlimited) will do to the cost of living?

Yes, it did feel kinda rainy already yesterday with “Purple Rain”.

Total Risk Off close today.

Bad Rain. Bad, Bad Rain...

Greece is about to default on the investors that funded the bonds that replace the first set of investors that they defaulted on just a few months ago. Get it? Every dollar thrown into Greek bonds at par is akin to flushing money down the toilet.

That high school students, even those who are borderline-failing their SATs, have a better understand of economics and job growth than Washington bureaucrats.

The consensus view of China is that the country is imploding due to the collapse of the export sector.  Such arguments make sense.  But they may also be dead wrong. 

Spain’s ten-year bond yield has broken back above 6%. To see Spain’s sovereign bond yields rising like this after the ECB announced it would essentially provide “unlimited” buying as support is simply stunning. And it indicates in plain terms that the ECB’s program was in fact a dud.

More bailouts and QE, until Beethoven writes the 10th Symphony.

They All Share One Thing ...