Archive - Jan 6, 2010 - Story

When you have your back against the wall, and the only thing at your disposal is the Fed's money printer on loan, what do you do? Well, if you are the Treasury, you let money rain. Literally. In December, according to the Financial Management Service, the US Treasury dispensed a stunning 69.5% more in Social Security Outlays and Unemployment Insurance on a year over year basis: the administration knew all too well it could not afford to let this holiday season go to waste. So, after averaging at $43.6 billion in monthly outlays, Social Security withdrawals from the UST surged by a unprecedented 48.6% in December to a whopping $69.5 billion. This is not a volatile or seasonal series.

• ECB Board member Juergen Stark says buck stops here, EU will not bail out Greece "The markets are deluding themselves when they think at a
  certain point the other member states will put their hands on
  their wallets to save Greece", comments whack euro (Bloomberg, FT)
• In the meantime, Greece, its head stuck deep up its...sand, says bailout not needed contrary to every indication to the opposite (Bloomberg)
• Iceland, and Iceman Mishkin, also thought so once, now country promises it won't default either, Dubai deja vu (Bloomberg)
• If Fed missed this bubble, will it see a new one (NYT)
• The rats are fleeing the global excess liquidity titanic en masse: first Dodd, now Japan Finance Minister - Naoto Kan named new fin minister (Bloomberg)
• Report from the "move your money" front (HuffPo and IRR)

RANsquawk 6th January Morning Briefing - Stocks, Bonds, FX etc.

Developing....