Archive - Jul 15, 2013 - Blog entry

It is obvious that the oil market is out of touch with the fundamentals.  But this is just my analysis, let`s hear what Oil industry executives believe.

Former Goldman Sachs trader Fabrice Tourre goes on trial this week, accused by the Securities and Exchange Commission of willingly misleading investors while he was vice-president of the bank.

Start Here If You’re Too Busy to Read Up on the Spying Scandal

PROPAGANDA IN THE USA!

Ben Bernanke blames fiscal policies out of Washington.  However, it is starting to look more and more like Fed policy is equally to blame for the lackluster U.S. GDP growth.

Call it what you will, a handshake or a parachute; the result is all the same. The rest of us just get elbow out of the way as we get pushed through the back door. The top executives leave by the front door and to boot they hop into a chauffeur-driven car (paid by the company, of course) as they drive off into the sunset. To parachute someone: send them elsewhere, relocate them, bundle them off, pack them off or dispatch.

Wild price swings in a market of this size (that is often leveraged at 80 to 1 or even 100 to 1) mean massive amounts of wealth evaporating instantly. Historically, currencies are the first asset class to register when the system is in big trouble. These wild swings in the US Dollar are a major red flag that trouble is beginning to brew behind the scenes in the financial system.

Wednesday and Thursday of last week were the US 10yr and 30yr auctions.  These auctions (combined with the price action in the secondary market leading up to the auctions) are the best times to gauge demand for UST paper.