2. Today I am not trading so much so I can catch up with some ideas – sentiment keeps rolling into even more bearish territory as the capitulation is building momentum and fundamentals go wild. Thanks for all the TARP and zero interest rates, not to mention all the toxic stuff the FED bought from us for insane prices – therefor we would like to support the economy considering we need to pay of Mr Buffetts yearly 500 mio interest which makes the dead man walking and fire 30k people for the greater benefit. Look for a volatile finish this week on the downside.

Well done Mr President and FEDs Bernanke and Treasurer Geithner!!



As Obama Discusses His Job Creation Plan, Bank Of America Releases Details Of 30,000 Job Cuts

Submitted by Tyler Durden on 09/12/2011 – 11:19BAC Bank of America Bank of America Barclays Institutional Investors

The irony; Just as Sgt. Obama had the not so lonely unemployed club band huddled around him to tell America to “PASS THIS BILL“, literally that very minute Bank of America released a statement it is sacking 30,000. Because Banana republic is so 2010, we are now officially an Onion republic.


Some support from the FED and Treasury to Mainstreet after spending your trillions to bank bonus pools we will finally throw you a perk and destroy your last savings.


$32 Billion 3 Year Bonds Sold At Rate Below 3 Month Libor

Submitted by Tyler Durden on 09/12/2011 – 13:17Central Banks LIBOR

Earlier today we reported that 3 Month USD Libor hit a year high of 0.343%, jumping from 0.338% on Friday. The reason we bring this up is that the US Treasury just priced $32 billion in 3 Year Bonds (chart 1 below) at a yield that is below that of 3 Month Libor. As for what that means we leave the explanation to anyone who believes that a 0.000% on the 30 Year (which courtesy of Operation TurboTorque we may soon see) is perfectly normal. For those who prefer empirical evidence, the last time this spread inverted was back in early 2009 before the Fed bailed out the world for the first time (chart 2 below). Now, on the question who bails out the world this time around, with all the central banks “all in” already, we are not too sure. Either way, completing the auction details, was a Bid to Cover of 3.148, slighly lower than recent averages, a Dealer take down of 53.7%, or more than half, and Indirects accounting for 35.7% or about their average. The non-eventfulness of the auction was confirmed by the lack of tail, with the When Issued trading at 0.34% at 1pm.


~ by behindthematrix on September 12, 2011.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: