Archive - Sep 12, 2009 - Story

Extrapolation exercises are fun, even if mostly futile and usually ending in tears. Nonetheless, as the VIX continues collapsing compliments of the dollar carry trade, we provide some observations from the latest bullish converts. It would appear the memo David Bianco received has made its way around the BofA vacuum tube network to the Merrill Lynch Credit Strategy team, headed by Jeffrey Rosenberg, which has thrown in the glove on cautiousness.

Just because every economic collapse has one...

“The economic fallout of the recession continued to push commercial and multifamily delinquency rates higher during the second quarter. Lower levels of employment, the pullback by consumers and other aspects of the slowdown translated into a difficult operating environment for many income-producing properties. That in turn has led to increased stress on the loans those properties support.” Jamie Woodwell, Mortgage Bankers Association

Grandma Janet sounds like an insane and/or senile bureaucrat who does not want to admit that she was one of the select cabal of monetary druids whose mistakes essentially destroyed the financial world a year ago... and their reaction to this destruction has made sure that the US economic system is now promptly heading either toward hyperdeflation or hyperinflation (likely both).