Funding Mismatch

Tyler Durden's picture

An Annotated Paul Brodsky Responds To Bernanke's Latest Attempt To Discredit Gold





Last week, Bernanke's first (of four) lecture at George Washington University was entirely dedicated to attempting to discredit gold and all that sound money stands for. The propaganda machine was so transparent that it hardly merited a response: those away from the MSM know the truth (which, simply said, is the "creation" of over $100 trillion in derivatives in just the first six months of 2011 to a record $707 trillion - how does one spell stability?), while those who rely on mainstream media for the news would never see an alternative perspective - financial firms are not among the top three sources of advertising dollars for legacy media for nothing. Still, for those who feel like the Chairman's word need to be challenged, the following extensive and annotated reply by QBAMCO's Paul Brodsky makes a mockery of the Fed's full on assault on gold, and any attempts by the subservient media to defend it. To wit: "Has anyone asked why so many powerful people are going out of their way to discredit an inert rock? We think it comes down to maintaining power and control over commercial economies. After professionally watching Fed chairmen cajole, threaten, persuade and manage sentiment in the markets since 1982, we argue this latest permutation is understandable, predictable and, for those willing to bet on the Fed’s ultimate success in saving the banking system (as we are), quite exciting.... Gold is no longer being ignored and gold holders are no longer being laughed at. “The Powers That Be” seem to have begun a campaign to discredit gold."

 
Tyler Durden's picture

Spanish Bond Yields - Who's A "Natural" Buyer Of The 10 Year





There are relatively few natural buyers of Spanish long dated bonds here. Fast money is likely caught long, and it will take a potentially reluctant ECB and some already overly exposed Spanish institutions to step up and stop the slide. It may happen, but many of the policies that “bailed out” Greece created very bad precedents for bondholders, and some of those are coming home to roost, as is the understanding that LTRO ensures that banks can access liquidity, but does nothing to fix any problem at the sovereign level.

 
Tyler Durden's picture

Moody's Downgrades Italy, Spain, Portugal And Others; Puts UK, France On Outlook Negative - Full Statement





You know there is a reason why Europe just came crawling with an advance handout looking for US assistance: Moody's just went apeshit on Europe.

  • Austria: outlook on Aaa rating changed to negative
  • France: outlook on Aaa rating changed to negative
  • Italy: downgraded to A3 from A2, negative outlook
  • Malta: downgraded to A3 from A2, negative outlook
  • Portugal: downgraded to Ba3 from Ba2, negative outlook
  • Slovakia: downgraded to A2 from A1, negative outlook
  • Slovenia: downgraded to A2 from A1, negative outlook
  • Spain: downgraded to A3 from A1, negative outlook
  • United Kingdom: outlook on Aaa rating changed to negative

In other news, we wouldn't want to be the company that insured Moody's Milan offices.

 
Reggie Middleton's picture

BoomBustBlog Research Evident In Today's News...





More reasons why quality blogs should be staple fodder for those who are serious about real information and analysis. Now reporters, editors, bankers, analysts, managers, politicos & regulators frequent blogs. Do you wonder why?

 
Tyler Durden's picture

Observations On The US Government's Escalating Near-Term Funding Mismatch





A candid look at the burgeoning US T-Bill holdings, the ever-worsening asset-liability duration and funding mismatch, and the implications for "moderating credit conditions", money on the sidelines, and US monetary policy, at a time when 2009 Treasury interest expense is set to surpass half a trillion dollars for the first time in history.

 
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