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Blackrock Joins JPMorgan And Fidelity - Sells All October And November T-Bills
Yesterday it was JPMorgan's money-market funds adjusting to their fiduciary duty and following Fidelity's lead in getting out of any and all short-term non-risk-free Treasury Bills. Today, another massive money-market fund provider sells it all...
- *BLK'S MONEY FUNDS HAVE NO ASSETS IN TREASURIES TIED TO DEFAULT
- *BLACKROCK SAYS `ZERO EXPOSURE' TO DEBT MATURING IN LATE OCT.
- *BLACKROCK SAYS NO HOLDINGS IN TREASURIES MATURING IN EARLY NOV.
It seems remarkable that all three of these funds would ignore the advice of blowhard bloggers who suggested this was nothing. But, as Barack Obama himself said yesterday, "Ultimately, what matters is: What do the people who are buying Treasury bills think?" It seems only the Fed (and PIMCO) is left.
“We continue to take prudent actions in preparation for all potential outcomes, despite our belief that Congress and the President will likely act to prevent a U.S. default,” Tara McDonnell, a spokeswoman for the New York-based company, said today in an e-mailed statement.
Ironic really considering Larry Fink's comments from earlier:
- *FINK DOESN'T SEE U.S. DEFAULT HAPPENING
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Who are they selling to? Tyler?
Makes you wonder what they know that others don't. Pass the pipe for another hit of HOPIUM!
Why did rats and ships immediately come to mind?
They're selling the stuff to Goldilocks whose advising the treasury how the accrued income will be handled on any late payments. Goldman's suggestion is at a 100% annualized rate.
Duh.
Uncle Slimey's disaster time investment in Goldilocks will pay off big!
BTW, for the money market funds, this makes all the sense in the world so as not to have to mess around with possibly breaking the buck, etc.
Very good business decision.
THIS IS NOT A RUN ON TREASURIES - REPEAT - THIS IS NOT A RUN ON TREASURIES - MOVE ALONG PLEASE
Breaking: Bill Gross launches all-physical gold fund.
China...wanna fuck the USA....here is your chance.
Sell those pieces of shit and I promise to learn Chinese.
Will only happen as a deathblow to the currency in order to end reserve currency status, not before.
GMad
if things are planned you are correct...if we have an unplanned event we could lose reserve status for many reasons and at any time.
There are now NO countries of significance that do not have currency swap agreements with China (Ok maybe Canada).Even the Eurozone has anounced such swaps. This means China and all its trading partners will seamlessly go about their business if the dollar fails. The dollar has been removed from the trading equation of biggest economy in the world (excepting the USA).
All that is needed is for the Saudis to make it official, that they will accept RMB for oil and the dollar will cease to exist as anything but the local currency of one large country. How do you say ruble in American?
It occured to me that a "default" is the means to justify the "political victory over the TEA party" end.
Would not surprise me in Boehner and McConnel are colluding with Barry on this manufactured crisis.
Barry calls the bankers as a heads up on the upcoming default. You see the banks positioning themselves. Republicans get the blame and give Boehner and McConnel cover to blame/marginalize the non-fascist wing of either party for the defult. Solution is to open government, rasie debt ceiling with some false promises of future spending cuts. Ole Yellin prints faster to infinity ...
There are many unintended consequences down this path. As for me, I hope it spirals out of control as we need a reset.
Isnt' the FED the buyer of last resort?
Bullish.
I personally love exposure. I was arrested for it, and my mother died of it.
Puredent? More like fools! Nothing could go wrong, just look at the giddiness eveywhere except the PM's of course.
The light bulb will go on eventually and this will be extended to no 3 month, no 6 month, no 1 yr, no 2 yr, no 5yr,.... SHTF.
Moooooooooooooooooo.....follow the fucking herd.
"The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that “the buck stops here.” Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better."
Sen. Barrack Obama (March 20, 2006)
Because it never gets old reminding the sheep...
Got tailhedge...I mean gold?
Feels like these announcements are just PR by the financial overlords to sway the politicians into line.
Elliot and other hedge funds will gladly buy these short term debt instruments on sale & which will be paid in full.
Wake me when T-bills go bidless. Otherwise, the ponzi will continue.
Never happen as long as the FED can buy. Wake me when no one else except the FED is buying would be more appropriate. Beside the easy money can't stop now since the FED is going to have step in to save that sinkhole called Obamacare from going insolvent before April 15th of next year at this rate.
FED is buying the one month bonds and putting them on its balance sheet.
How? There are no open market operations today? So you are saying that we are being lied to? I am shocked, shoceked i tell you.
http://www.marketwatch.com/story/why-america-needs-a-debt-default-2013-10-11
Why America needs a debt 'default'
Commentary: Is it time to hit the reset button?
By Anthony Mirhaydari
It's clear the fiscal fight in Washington isn't going to end anytime soon.
Sure, a short-extension to the debt ceiling is under discussion, according to reports, but that will only open the door to contentious budget talks over issues like entitlement reform and changes to the tax code. The two parties remain far apart: Republicans want to balance the budget in 10 years, while Democrats want another trillion in taxes and spending.
There's too much at stake and the choices are tough. But what if we didn't have to make it?
What if we took the easy way out that didn't require the sacrifices — such as higher taxes, lower spending, and fewer entitlement benefits — that Democrats and Republicans are playing hardball over in the first place?
What if we could avoid the nightmare that would be a debt-ceiling breech, which would force us to choose between ruining the Treasury's reputation as a risk-free investment but provide checks to seniors on Social Security, or leave grandma in the lurch but pay our creditors in Tokyo and Beijing?
The more I think about the extent of the problems facing this country, the more apparent it is that a hard reset is needed. I'm talking about a debt default, but not in the traditional sense. And the Federal Reserve would play a key role.
"And the Federal Reserve would play a key role." - FAIL. I am sure they would love the oportunity to acquire even more power, control, and real assets, while creating more debt slaves. End the Fed.
"The Great Game"
Option 1:
sovereign default -> cascading defaults throughout the whole world -> end of reserve status -> economy annihilated -> junta/dictatorship -> war
Option 2:
(miscellaneous bad stuff) -> junta/dictatorship -> war -> economy annihilated
Yippee.
1..2..3... Not It!
"Cooger & Dark's Pandemonium Shadow Show Opening Soon"
Goldman owns the wild Fed put. Winning fearless with robot surgical precision.
"The Rothschilds, and that class of money-lenders of whom they are the representatives and agents -- men who never think of lending a shilling to their next-door neighbors, for purposes of honest industry, unless upon the most ample security, and at the highest rate of interest -- stand ready, at all times, to lend money in unlimited amounts to those robbers and murderers, who call themselves governments, to be expended in shooting down those who do not submit quietly to being robbed and enslaved."
Quote by: Lysander Spooner(1808-1887) Political theorist, activist, abolitionist
Nope, there must be another reason they are doing this, too straight forward.
Wow... you can go "all out" in Wall St. Hold Em?
Blackrock is only good for collection of billions in Government cheese: free money and insider deals.
By Anthony Mirhaydari, "The two parties remain far apart: Republicans want to balance the budget in 10 years, while Democrats want another trillion in taxes and spending.
I call Bullshit on that statement. Until the R's lost the White House they had no interest in balancing the budget, as you will see the next time they take the White House. Then it will be the D's that want a balanced budget.
Only the minority party wants to balance the budget as the majority believes it has a mandate.
All my 401k hopium is in Black Rock's Money Market Trust("Stable Value") via Merrill Lynch and hasn't paid a monthly dividend since the $0.08 I received on May 31, 2013.
My wife's is in a similar fund(TRP Stable Value Fund Sch B) through T. Rowe Price with about 9 times less the amount I have, and her avg monthly dividend in that same time period has been $40.00/month.
Fuck you Fink!
I believe that almost all dealers become net flat at EOD, ie they are short notional as much as they are long notional. This is standard practice.
if you have 100Billion short of anything and 100Billion Long of anything your risk is essentially 0.