wednesday brainstorming

1. The bull campaign manipulators are pressing for a debt ceiling raise as that is the single biggest threat to their manipulation right now. Actually I think the threat lies in the ultimate sellout of the Dollar and the according assets which is just a matter of time. They are rather more concerned that they loose the control of the timing when serving public interest.

excerpt

Banks, Hedge Funds Threaten A Repeat Of Lehman If Debt Ceiling Not Raised

Submitted by Tyler Durden on 04/27/2011 07:06 -0400

As we reported yesterday, The Treasury Borrowing Advisory Committee, easily the most important 3rd party advisory structure at the US Treasury currently, chaired not surprisingly by JP Morgan and Goldman Sachs, released a letter to Tim Geithner, doubling up his calls for untold death and destruction, not to mention plunging year end bonuses, if the US is not allowed to kick the can down the road for another 1-2 years. For those curious, in addition to the Matt Zames chaired committee, other members include Soros, Tudor, Bank of America, BNY, Moore, Alliance Bernstein, Morgan Stanley, Round Table IMC, Brevan Howard, PIMCO (lol), Dodge & Cox, RBS, and Western Asset Management. The full M.A.D. letter is presented below.
2. starting today Venus will run through a brief period of distress til the 30th of April and we can expect a setback for the market as it is pushing the envelope ( Bollinger bands) anyway. Since timing is that first FED press conference is due today ( which should bring no real surprises) the lack of giving a QE3 hint today may be enough for a little profit taking before the bulls resume their upside scam.
excerpt

On The Verge Of The FOMC Presser, Dollar Hits 3 Year Low

Submitted by Tyler Durden on 04/27/2011 04:46 -0400

It appears the market is in a festive mood today, just 8 hours ahead of the first largely irrelevant FOMC press conference (yes, Bernanke has fielded irrelevant Q&A before, and yes, whenever he met a question he did not like, he disagreed with it and moved on). As a result the long-suffering US Dollar, which continues to be down YTD as much as the market is up, confirming that in real term there has been absolutely no gains in the stock asset class, has just hit a 3 year low low and just a little more to go until the all time low is breached. And this is in addition to the just announced S&P outlook cut on Japan, which has seen some incremental shorting of the Yen which unfortunately now is a secondary carry funding currency, and you can see that while the dollar should be getting at least a modest push higher the EURUSD is now toying with 1.47. The biggest winner in FX land continues to be the USD-backed CHF, which is outperforming every other pair. And elsewhere, after doing its all too usual OpEx shenanigans, gold is also back in fine form, over $1,506 and going higher now that the shakeout of the latest batch of weak holders has taken place. All in all, a perfect day for nobody to ask whether it is US policy to destroy its own currency.

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~ by behindthematrix on April 27, 2011.

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