Dis and Dat

Bruce Krasting's picture

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Convenient timing for this announcement. Sixty days before the big election the Administration is dishing out favors to big hedge fund contributors. I wonder how much they took in to make this deal.

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II

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It always surprises me how quickly sentiment changes. A month ago the the FX market had a big short on the EURUSD. The betting at the end of August is that a long Euro position is the way to make money.

How big are the expectations that Mario Draghi has to deliver on? Big. Very big.

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III

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No TAG? What's that about?

In the dark days of 2008 the FDIC guaranteed all non-interest bearing deposits at banks. Back then, there was a run on the banks. TAG (Transaction Account Guarantee) was the FDIC response. Tag was supposed to run out in 2010 but got extended to 12/31/12.

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Time has run out for any legislation to extend TAG before the election. Add this silly old thing to all the other things that are going to fall off a cliff on New Years Eve.

Oh, one thing about TAG, the transactions accounts that are guaranteed by FDIC run to the Tens of Trillions! So much for that TBTF issue we used to hear about. Another reason for a a hard landing in January.

 

 

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Watch out for this story. It has legs.

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V

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How much of the student loan debt is un-payable? Half?

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This debt is a noose around young people's neck. What an ugly thing to have done to them. The next generation will never be able to dig out of the hole.

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VI

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For those who love regulations and believe that Congress can actually fix things, DF is a blessing. In the end, those who want more regulations will find themselves strangled by DF. It ain't gonna work!

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