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"Clueless", Reaccomodating Fed Spurs Epidemic Of Record Low Yields Around The Globe
“If it wasn’t obvious that Fed normalization was going to be difficult, it should be now. Risk assets don’t appear to be ready for significant removal of accommodation".
- Deutsche Bank's Dominic Konstam
So much for "the recovery" (in the US or elsewhere) and a mythical world in which a seamless handover from the Fed to the economy can ever take place.
As Deutsche Bank correctly summarizes, markets were left scratching their heads last night as to whether the FOMC minutes released were actually from the right meeting. They were certainly more dovish than that implied by the increases in the dots 3 weeks ago and the associated statement.
If there is anyone who goes postal in the Marriner Eccles building it will probably be a Fed Fund Futures/Eurodollar trader: "after the FOMC back on September 16th the market re-priced Fed interest rates notably higher with Dec 16 Fed Funds futures moving from 1.67% to 1.82%. However reading the minutes last night it’s clear that some members see risks more on the downside than they let on at the time. Indeed on the committee a number of participants said growth “might be slower than they expected if foreign economic growth came in weaker than anticipated,” and that "Some participants expressed concern that the persistent shortfall of economic growth and inflation in the euro area could lead to a further appreciation of the dollar and have adverse effects on the U.S. external sector." This sounds like a committee that will clearly raise rates as they expect if everything is ok in the world but won't if events turn out more negatively. The same Dec 16 Fed Fund Futures contract is now at 1.575% and has fallen fast in recent days."
DB's Jim Reid concludes it correctly, if tongue in cheek - the Fed has NO IDEA what it is doing anymore, ot what will happen next month, let alone next summer:
Overall we think the market pays too much attention to the dots which are based on economic forecasts that since the crisis have proved pretty unreliable. Fed funds will end up moving with the actually path of the global economy and asset prices rather than the forecast of them. For now we would happily take the under in any under/over game based on market expectations for Fed Funds over the next couple of years.
Translation: the Fed is absolutely clueless, however that is great news for risk assets as it means the Fed's CTRL and P buttons are about to get some serious exercise, leading to hilarious overnight headlines such as:
- IRELAND SELLS 10-YEAR BONDS AT RECORD-LOW YIELD OF 1.63%
- GERMAN 10-YEAR BUNDS RISE; YIELD FALLS 2 BASIS POINTS TO 0.88%
- DUTCH 10-YEAR GOVERNMENT BOND YIELD DROPS TO RECORD-LOW 1.021%
- PORTUGUESE 10-YEAR BOND YIELD DROPS TO RECORD-LOW 2.942%
- FRENCH 10-YEAR GOVERNMENT BOND YIELDS DROP TO RECORD-LOW 1.214%
- U.S. 10-YEAR NOTE YIELD DROPS TO 2.296%, LOWEST SINCE JUNE 2013
- SPANISH 10-YEAR BOND YIELD DROPS TO RECORD-LOW 2.038%
- FINNISH 10-YEAR YIELD DROPS TO 1% FOR FIRST TIME ON RECORD
And that is all you need to know about the "global recovery" and the Fed's 2015 "rate hike."
Market Wrap:
European stocks rebound from 2-month low on speculation Fed will keep rates near zero after minutes of last meeting showed policy makers were concerned about global growth. Basic resources sector leads gains in Europe as commodities and bonds also rally. Asian stocks rise. Dollar falls. WTI trades near 17-month low as gain in U.S. stockpiles is more than forecast.
- S&P 500 futures up 0.3% to 1966.9
- Stoxx Europe 600 up 1% to 331.24
- US 10Y yield down 1bps to 2.31%
- German 10Y yield down 3bps to 0.88%
- MSCI Asia Pacific up 0.7% to 139.05
- Gold spot up 0.6% to $1227.9/oz
Overnight, markets in Asia have responded broadly positively to the minutes with the Hang Seng up +0.9% whilst the MSCI APEX 50 is up +0.7%. These moves were also supported by news that China Premier Li Keqiang had pledged further measures to lower financing costs (BBG). Japanese markets are responding less positively overnight with the Nikkei slightly down as we type, likely driven by the -0.8% drop we’ve seen in USDJPY since the minutes were released. Asian credit has responded strongly with iTraxx Asia trading -3bps tighter. Asian stocks gain, led by financials. Chalco rises after Alcoa profit beat estimates. Tianhe Chemicals drops after denying fraud claims. IT, industrials underperform. MSCI Asia Pacific up 0.7% to 139.05; Nikkei 225 down 0.75%, Hang Seng up 1.17%, Kospi down 0.39%, Shanghai Composite up 0.28%, ASX up 1.06%, Sensex up 1.52%. 8/10 sectors gain with financials and materials rising most. Japanese machine orders rise 4.7% m/m; est 0.5%
European equity markets recovered a significant portion of the week’s sharp losses, with the DAX future now sitting over 100 points above the week’s low print as the strong Wall Street close lifted stocks across the board. The materials sector is the strongest performing sector today, with miners lifted by a rally in not just precious, but also industrial metals, pushing miners such as Antofagasta, Fresnillo and Randgold Resources to the top of the board on the Stoxx 600. In individual stocks news, GlaxoSmithKline, one of the UK’s largest companies, became the latest company to warn that the strong GBP will hit their upcoming EPS numbers. Traditionally signalling the beginning of US earnings season, Alcoa (AA) beat expectations, as higher aluminium prices allowed the upstream business to record the best performance since 2008. Looking ahead, both PepsiCo and Family Dollar are due to report today. All sectors rise led by basic resources, technology; German Aug. exports drop 5.8% m/m; est. -4.0%.
Bulletin Headlin Summary from RanSquawk and Bloomberg:
- T-notes rally further in Europe, with the US 10yr yield falling to June 2013 lows (levels seen in the wake of Bernanke’s ‘taper tantrum’ speech on May 22nd 2013) after the FOMC’s dovish minutes
- Eurozone bond yields fall to record lows as the hunt-for-yield trade is revitalized, benefiting the periphery
- ECB President Draghi due to be speaking with Fed’s Fischer at 1600BST/1000CDT, shortly before the 30yr Bond auction from the US Treasury
- Treasuries extend gains, 10Y yields a lowest since June 2013, after FOMC minutes yesterday showed conern about potential for weak economic growth abroad, impact of USD appreciation.
- German 10Y yield touches 0.88%; Finnish 10Y falls below 1% for first time on record; Spanish, French 10Y yields reach record lows
- Week’s auctions conclude with $13b 30Y; WI yield 3.06%, lowest since May 2013
- Bond traders at JPMorgan and Citigroup Inc. face the fastest-shrinking bonus pools on Wall Street this year, while Morgan Stanley investment bankers head for the greatest gains
- The hackers who raided the data banks of JPMorgan used computers now linked to possible attacks on at least 13 more financial companies, according to a person familiar with the investigation
- Espirito Santo Financial Group SA, the Portuguese company that unraveled in the wake of soured loans, was forced to file for bankruptcy after a court rejected a request for creditor protection
- Kim Jong Un’s prolonged absence from public view, including skipping a session of parliament, has raised questions as to whether his disappearance has less to do with his health and more to do with his grip on power in nuclear-armed North Korea
- France’s Socialist government is chipping away at the country’s welfare system, which dispenses EU52b annually just in family benefits
- A hemorrhaging public deficit and debt on track to reach about 100% of GDP within two years have left the government with little choice but to attack what in France has been a way of life for almost a century
- A nurse who treated Ebola patients with the Red Cross in Sierra Leone was hospitalized in Australia after developing a low-grade fever, health officials said. She is being tested for the deadly virus
- Sovereign yields lower, led by peripheral Europe. USD weaker vs all G-10 peers. Asian and European stocks mostly higher.U.S. equity-index futures gain. WTI crude lower, gold and copper higher
US Data Calendar
- 8:30am: Initial Jobless Claims, Oct. 4, est. 295k (prior 287k); Continuing Claims, Sept. 27, est. 2.410m (prior 2.398m)
- 8:45am: Bloomberg Oct. U.S. Economic Survey
- 9:45am: Bloomberg Consumer Comfort, Oct. 5 (prior 34.8)
- 10:00am: Wholesale Inventories, Aug., est. 0.3% (prior 0.1%); Wholesale sales, Aug., est. 0.3% (prior 0.7%) Central Banks
- 10:15am: Fed’s Bullard speaks in St. Louis
- 11:00am: ECB’s Draghi, Fed’s Fischer speak in Washington
- 1:10pm: Fed’s Tarullo speaks in Washington
- 1:15pm: Fed’s Lacker speaks in Asheville, N.C.
- 1:30pm: Fed’s Fischer speaks in Washington
- 3:40pm: Fed’s Williams speaks in Las Vegas
- 7:50pm: Bank of Japan Sept. 3-4 meeting minutes Supply
- 11:00am: U.S. announces plans for auctions of 3M/6M/1Y bills
- 1:00pm: U.S. to sell $13b 30Y bonds in reopening
FIXED INCOME
European bond yields all traded lower this morning after yesterday’s FOMC minutes provided a fillip for carry trades, as the hunt for yield across the continent pressed Spanish, Portuguese, French and Dutch 10yr yields to record lows (alongside many others in the Eurozone). The upside in T-notes has persisted ahead of the CBOT open, with 10yr Treasury yields indicated to open at the lowest levels since June 2013 (just weeks after the initial taper tantrum). Spillover buying in Treasuries coupled with a poor German trade balance pushed Bund futures to contract highs for the third consecutive session, with markets shrugging off supply from both Ireland the
FX
USD/JPY suffered the brunt of the USD weakness post-FOMC, falling to monthly lows of 107.61 as interest-rate differentials prompted a flight into the JPY. As such, the pair traded in very close proximity to the 107.50 level – at which USD 3bln worth of options are due to expire at today’s 10am (1500BST) NY cut.
Overnight, focus was on AUD following the employment report coming under scrutiny after the ABS dropped its seasonal adjustments to the figures. Employment Change printed an 18 month low at -29.7K vs. Exp. 15.5K (Prev. 32.1K) while the unemployment rate remained unchanged at 6.1%. Analysts at Westpac, using their own seasonal adjustment analysis, see the true figure at approximately -172K. This spurred a counterintuitive move in AUD/USD with the pair initially spiking lower led by algo-selling before recovering losses bolstered by a flurry of hedge fund buying.
COMMODITIES
Spot gold and silver both trade strongly, buoyed by the broad-based USD weakness after the dovish FOMC minutes yesterday. Silver now sits just below the 21DMA line at USD 17.78/oz. WTI and Brent crude futures are also seen higher, as the bout of USD weakness provides a boon for all USD-denominated commodities. Looking ahead, EIA NatGas Storage Change is expected to show a build of 109bcf, followed by Oct’14 Brent crude options expiring at the pit close.
* * *
DB's Jim Reid concludes the overnight recap:
We'd agree with DB’s US Rates Strategist Dominic Konstam who said in his latest piece a couple of days ago that “If it wasn’t obvious that Fed normalization was going to be difficult, it should be now. Risk assets don’t appear to be ready for significant removal of accommodation". So with all this, markets re-priced the Fed again after last night's minutes, and we saw the S&P 500 (+1.75%) see its best day of the year whilst US credit markets also rallied with CDX IG closing the day -2.5bps tighter. These moves stand in stark contrast to what was another weak day for European markets (which closed before the minutes were released). The Stoxx 600, CAC and DAX all lost around another -1%. European credit markets fared better with iTraxx Main flat whilst Xover widened just +1bp.
Overnight, markets in Asia have responded broadly positively to the minutes with the Hang Seng up +0.9% whilst the MSCI APEX 50 is up +0.7%. These moves were also supported by news that China Premier Li Keqiang had pledged further measures to lower financing costs (BBG). Japanese markets are responding less positively overnight with the Nikkei slightly down as we type, likely driven by the -0.8% drop we’ve seen in USDJPY since the minutes were released. Asian credit has responded strongly with iTraxx Asia trading -3bps tighter.
In terms of news yesterday, the main European data point was Spanish August Industrial Output which disappointed, rising +0.6% YoY vs +0.9% expected. We also learned that Russia’s bond auction struggled, as the government raised less than half the amount that it had intended to, and the central bank said it had sold $420m of foreign currency on October 6th to support the struggling Ruble (BBG). Earnings season also unofficially kicked off positively yesterday as Alcoa reported after the close. The company beat revenue and earnings estimates and the aluminum-maker’s shares increased almost 2% in after-hours trading after rising around 1% during the regular session (CNBC). Looking ahead Alcoa forecast global aluminium demand to grow by 7% in 2014.
Yesterday the IMF released its latest semi-annual global financial stability report and it provides plenty of food for thought for those worried about the state of the world’s financial system. To be fair that's the point of this report in many ways and if it didn't highlight the risks then it wouldn't be a particularly relevant publication. In the report, the IMF discusses how, “, the global economic recovery continues to rely heavily on accommodative monetary policies in advanced economies,” however, “although the economic benefits are becoming more evident in some economies, market and liquidity risks have increased to levels that could compromise financial stability if left unaddressed.” As evidence of their concerns, the IMF notes that accommodative policies have, “resulted in price appreciation, spread compression, and record low volatility in many areas reaching levels that indicate divergence from fundamentals,” however the biggest cause for their concern is the level of, “synchronicity,” seen in these moves (across broad asset classes and countries) which they describe as, “unprecedented.” The report highlights a number of other concerns. These include how “Capital markets have become more significant providers of credit since the crisis, shifting the focus of risks to the shadow banking system”, where they cite large global asset management firms as a particular case for concern, and also how, “Emerging markets are [now] more vulnerable to shocks from advanced economies.” In terms of what this means going forward, the Fund argues that, “Monetary policy should remain committed to achieving the central banks’ mandate of price stability and—where relevant—output stability,” with macro-prudential policies should be the, “the first line of defense against financial excesses”. The report is very broad and covers many other issues not mentioned here, including that Eurozone banks may not be able to meet the demands of their economies in their current form, and overall makes for an interesting read.
Overnight the Italian parliament’s upper house voted on labour reforms. As DB European Economist Marco Stringa wrote earlier in the week the parliament was voting on, “a so called "delegation law"”, which whilst not a vote on final labour reforms, it does mark “the beginning of the labour reform process, which should be completed in 2015.” The Italian PM Renzi won the vote by 165 to 111.
Looking to the day ahead, in Europe we have Germany’s August current account balance (expected in at +€13.8bn) and also France’s August trade balance (expected at -€5.5bn). We will also get Greek September CPI which is expected in at -0.3% YoY. The ECB will publish its latest monthly report whilst the Bank of England will announce its latest rates decisions (expected unchanged). In the US we will get initial jobless claims (expected in at 295k) and August wholesale inventory and trade sales MoM growth (both expected in at +0.3%).
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The recent drum beats and flames of war have distracted many people from focusing on the economy. The markets are extended beyond beyond, all this comes at a time when the IMF and Central Banks are calling for more QE. It seems this might be a good time to review the reasons this is economically unsound and a bad idea.
Currently markets are setting new record highs at the same time economies continue to struggle. The policies of the last six years have yet to produce the desired and expected results promised. As a consolation many economist, bankers, and those who have benefited greatly tell us we would be in far worse shape if we had not taken this course. Now it seems Central Banks and the IMF are clueless on how to proceed and a policy going forward. More on the lack of a clear path in the article below.
http://brucewilds.blogspot.com/2014/09/central-banks-and-imf-clueless-on...
Bingo!
Central banks are powerless now to stop the world economy from falling off the cliff into the abyss.
Let's stack us some wood and have a big ol' bond-fire
This should end well. Reap what y8u sow, CBs!
This "reaccomodating" crap is just moar bullshit to appease the sheeple just before the ship sinks beneath the waves.
While the central banksters watch from the shore sipping martinis and waving ta ta..
Greed is not need.
Greed has no limits.
BOOM! Hyperinflation.
starting to see it-food...stuff you need. gas/oil next, hmmm glut from slowdown.
real indicators are in conflict, of course, ha...
patient as this plays out, someday the market of rabid fear will take hold and price of all this tit for tat bond buying with print faux money will reevaluate with the top 1 percent ok and everybody else dripped to povererty or 2 nd world class of debt serfs without enuf income to service. grim, grim, grim. tic toc to revolution...
In other unreported mainstream news:
The Netherlands issue shellfish warning following Belgium polio incident
Posted by Robert Herriman on September 26, 2014
http://outbreaknewstoday.com/the-netherlands-issue-shellfish-warning-fol...
The Dutch Food Safety and Health Authorities issued a warning (computer translated) against the consumption of raw, improperly cooked shellfish (mainly oysters) harvested by individuals in the eastern part of the Westerschelde river in response to the 45 litres [almost 12 gallons] of concentrated live polio virus solution accidentally released into Belgium water sources by Glaxo SmithKline earlier this month. . .
-----
12 liters of stockpiled live polio virus? For what, germ warfare? You don't accidentally release 12 liters of a live toxin, the toxin is stored in containers under lock and key in a secure room. GSK illegally dumped the toxins after their shelf life expired. So GSK has plenty more fresh polio toxin in storage.
D68 enterovirus is the new name. Get with it.
Its not like they dont have precautions and protocols to follow when handling such hazards.
By any chance, do you have a link to your blog where we might learn more about what you think of this?
Oh, wait, I found it.
right here: http://www.zerohedge.com/news/2014-10-05/jim-grant-we%E2%80%99re-era-cen...
and here: http://www.zerohedge.com/news/2014-10-02/why-christine-lagarde-suddenly-...
AND here: http://www.zerohedge.com/news/2014-10-08/what-changed-simple-reason-yest...
The soviets were fucking amateurs.
The soviets didn't have the major central banks of the world all working together as one.
You buy from me.....and I'll buy from you.
We'll both print the cash to cover it.
Anything else? OK....we're adjourned then.
Mugabe meets the Martingale Strategy.
You are here.
The Martindale strategy? Like Wink Martindale from Tic Tac Dough?
Bzzzt.
The soviets didn't have the major central banks of the world all working together as one.
bingo! If the BRICS nations and emerging markets have interest rates above 6% - Then who the hell is buying these bond offerings from bankrupt nations in the dying European union when you could invest in bonds with much higher reward?
Once you understand what is being done by the CBs buying PMs is a NO BRAINER!
Interest rates above 6% but in which currency?
Interest rates above 6% but in which currency?
the ROI is 6% regardless of currency.
In the late 1990's I would get $738 CAD for my $500 USD at the Casino. Then I realized that although I had more money to gamble I was losing in the long run. If you are here at ZH and understand what is going on with currencies then the answer to why I was losing money is obvious.
It's always best to pay more attention to what people actually DO, vs. what they say. For all this talk about tapering and higher interest rates, rates just keep dropping. This is on purpose. We are headed for negative interest rates, where basically you are charged a fee (by Government) for capital preservation. Anyyone who thinks otherwise is living in the last century.
time for a panic exit out of these dogshit Bonds IMHO, ECB can hold the bag.
Not going to happen, at least not without a major external shock that starts a panic and overwhelms the ECB.
La la la la la la la...
Not going to happen
Yeah.....more of a slow grind straight into hell.
Unless someone makes a mistake.....which is theoretically possible.
Humans are walking mistakes, give it time.
cb and banks of banksters are the main players of this game of junk accumulation. wow, in amazement of how well it has worked so far. trillion treasuries for quad of yen garbage. landfill it all. dump will happen when the trust breaks, remember there is no honor amoungst thieves...
REading between the lines, the ECB is ALREADY holding the bag. Nobody buys bonds from these countries, at such low yields....unless $$ are worth nothing to you and produced for free. The ECB is already buying the bulk of the bonds.
The lower the yields get, the closer to the end of the line the subject country seems to be.....
Lower yields signify the strength of the economy.. duh.
I'd call them clueless if interest rates were skyrocketing. All I see are bankrupt governments borrowing for free all over the place.
#winning
Bankrupt governments are indeed borrowing practically for free all over the place.
I believe the term 'clueless' is referring to the lenders.
Yes QD, and when and if the bond goes belly-up, they will have no principle to go with their near zero yield.
Vendor financing.
Fuckin A!
plus for comment(and handle) it is fucken-eh, as i recall...
we would be in far worse shape if we had not taken this course.Ummm, I don't think so. Normal life cycle of business would have been allowed to proceed killing off unproductive and uncompetitive segments with the resurgence of a healthy business in it's place.
FTSEMIB FUTURES OFF 400 Ibex off 200 , CAC red FTSE red, DAX with more terrible figures being held up at the moment by the ridiculous overnight US futures ramp
I just woke up. Can someone tell me what day it is, and year. 2011?
http://www.youtube.com/watch?v=dYzVdv6V5Vs
Jim Ried, you just don't get it. This is the new normal for the fed. Zero interest rates and virtually free borrowing for .gov forever.
La la la la la la la la la la ..
I feel like I've just watched CNBC for 3 daze straight.
This is not that difficult. The fed owns the bond market so they have complete control over interest rates. Difficult concept around here for some reason. They are done printing money though and the economy is imploding. This time the fed is going to look away and leave it to the politicians to start handing out goodies to boost things. That ain't happening at the moment so things are getting dicey so we need some beheadings and even a deadly virus to keep us occupied for either a while or until we go broke and fall out of the system or get the virus....or both. Now get out there and make it a great day.
Who owns the Fed?
The banks.
Who owns the banks?
"Admiral Ackbar, you wanted to say something?"
Satan?
Who owns the gold? Have u not noticed the irony BTW that you are on the side of those that you ridicule on here all day?
I feel bad for you BTW you have misunderstood what printing is in the digital money world. This is Not the printing u were looking for.
Who owns the gold?
Theoretically.....or who actually has possession?
The bankers own the gold and also the possession or their associates.
If the Bankers (FED) are read to look away then it means they have packed their bags and ready to close shop. They will wait it out and start a new shop elsewhere, another time.
If thats the case then expect .gov to make really obnoxious decisions and plans, if not extreme steps, to keep the money illusion alive.
You go on with your "insightful" commentary, and I'll continue to profit from the fed's excesses.
closed loop system with majority looking in and a few like the dr with balls to game it.
more power to ya! i'll sit this out and accumulate prepper goods that can be used daily.
got generator, non perishable, zombie stoppers and some goodies for mood enhancement(cigs abnd caffine) with a stash of honey.
just sayin,ha...
All the best to you Doc.
But Im not a betting or even an investing man, else I would probably do the same as you.
We are all Japan now...
Not Part of the subject.
Today we received reports that LOUKANIKOS THE RIOT DOG of Athens, IS DEAD.
Another Hero that Knew who the Enemy IS and who needs protections, has passed into History.
WE WILL REMEMBER YOU LOUKANIKOS
the fed is not clueless and Deutsche Bank damn well knows it. that's like saying goldman sachs is clueless after reading their public pronouncements.
If you're not inside, you're outside, okay? [/Gordon Gekko]
Doctor, during 28th vist in 7 years: "Nope, still can't remove the bandage to check your wound's healing, as I'm afraid loosening the adhesive might hurt your skin. Come back in another 3 months, and try the green pills this time . . ."
The debate about when China will oust the United States as the world’s top economy has been all over the place, with recent estimates ranging from one to five years, as opposed to projections of one or two decades not that long ago. Now the International Monetary Fund says China has already zoomed ahead. The IMF, which in the spring calculated new exchange rates for comparing output of different economies, estimates the size of the U.S. economy in 2014 is $17.4 trillion, while China’s comes in at $17.6 trillion. The speed of the transformation is breathtaking: As recently as 2005, China’s economy was less than half the size of America’s. Moreover, the IMF projects that China’s economy will be 20 percent bigger than that of the U.S. by 2019.
http://www.thedailybeast.com/cheats/2014/10/08/imf-china-passes-u-s-as-b...
Hey, Tylers, what's going on with Kim Jong Un in North Korea? Read one this morning he might be dead and his little sister is running the show over there.
What happened? Did he short the 10 year?
Moar like "only a tiny little thin one" that fat fucker in:
http://www.youtube.com/watch?v=qMovaziKcZ8
One PO to Boeing should get us back on top
Maybe he called Moochelle a tranny. The last person who did that died during routine surgery.
Espiritu Santo bank going into Bankruptcy; this could be a factor in what is now a flight to safe havens; somebody is nervous in t he service; money pouring into Gold and Silver.
Kim Jong Un? you sure this isn't another crazy Nth Korean rumour to distract and dazzle the masses and draw their attention elsewhere?
I love "keeping up with north korean despots" as much as the next guy, but most of them turn out to be just manufactured rumours cooked up by 'journalists' to draw more click-baits.
this is madness and i'm sick of it
What is killing the western Nations is this giving their jobs to low wage Countries and not getting a return in value. The only way to stop the US and others going over the Cliff is double all Wages up to a point and cut working hours to 30 hours a week and then you will see the Country get back on it's Feet. Also, take away those trillions that the Fed has printed and given to the criminal Bankers and spend that Money fixing all those Roads, Waterpipes and other things that are falling apart. If that does not work, nothing will.
some crazy levels hit today
10y Netherlands 0.998
10y Finland 0.981
and France 1.201 that one is insane!
I just want to see a major 10yr go negative...come central banks you can do it.... Wonder if Germany might be the first.
This is so fucked. Just wait until the retail # post holidays come out, it is going to be a very bloody jan/feb 2015.
And if ebola spreads it will be "bloody" indeed!
It's a world wide flight to safety; money is pouring into Gold and Silver as we speak. Something is wrong.
The acceptance that they'll never stop printing has become the simple horror that they can't EVER stop printing.
Pretty amazing the flight to safety for bonds...but PMs are still way down...I for one would rather have $10,000 in gold or silver than a $10,000 French 10 year Bond...
Unshackled Bonds ! At last free !
So you might be made to believe by the FED...
Shackleton was an adventurer who died in a South Pole expedition. His boat was called Endurance and he lost it there.
Maybe the FED is playing at being Shackleton and the loss of its flagship QE/ZIRP will end with them sinking into the financial vortex of the New South Pole of Fiat.
"We're heading south," Bigtime.
Indeed clueless.
"Peak Bankers" they can now start trying flying out of the windows of their sky scrapers.
But will the Piper go without being paid?
Dup.