Monthly Archive:: October 2011

Pelosi Quote

“It is clear we must enter an era of austerity; to reduce the deficit through shared sacrifice.” – Nancy Pelosi, Dem Leader, US House ...Read More

Italy Bond Yields Rise at Auction, 10-Year Bond Auction Yield at New Euro Era High

Nice, they announce proposal to confiscate 50% of Greek bonds from investors right in front of an Italian auction. And we thought we had sorry politicians… ...Read More

Euro Bailout Fund Chief Sees No Quick China Deal

Now it all starts unraveling. It’s all talk- another ‘optical illusion’ with no operational reality I sight. The China participation isn’t a done deal. The 50% haircut isn’t a done deal either as they haven’t yet figured out how to actually do it without a default event. The EFSF contributions aren’t a ...Read More

Euro Zone Strikes Deal on 2nd Greek Package, EFSF

The markets like the announcement. Of course they also liked QE2… Unfortunately, as previously discussed, without the ECB the EFSF isn’t sustainable. It’s like trying to lift up the bucket by the handle when you are standing in it. Nor is it cast in stone yet, but all subject to details. Also, ...Read More

Will be in NYC this Saturday at 1pm

I’ll be at Zuccotti Park, northeast park corner near their library area at 1pm on Saturday. All invited to drop by! ...Read More

Valance Weekly Report 10.26.2011

Valance Weekly Report (To download PDF, right click link and select save link as) Highlights US – Consumer Confidence erosion mirroring Europe’s EU – Business and Consumer Confidence at cycle lows JN – Exports improve although domestic conditions remain weak UK – Manufacturers’ optimism dropped sharply CA – BoC cut its 2011/12 ...Read More

Crude Oil Update

Still seems to me that the idea that WTI appreciates to Brent as the Strategic Petroleum Reserve release winds down over the next few weeks is playing out as previously discussed. The WTI discount depends on a serious glut condition persisting, and the wind down of the approx 3.8 million barrels a ...Read More


Looks like Merkel is speaking purely for political effect, which may be all she’s capable of, unfortunately. Fact is, from the beginning, without the ECB ultimately writing the check, it’s all been in ponzi. And like all ponzi’s, it seems to work on the way up, and disintegrates on the way down. ...Read More

US Treasury May Issue Debt With a Floating Interest Rate

Brilliant. Reminds me of Will Rogers. Think of all he’d have said if he’d understood MMT. US Treasury May Issue Debt With Floating Interest Rate By Jeff Cox October 24 (CNBC) — Dealers and traders have been approached recently with plans to issue a floating-rate note that for investors would provide an ...Read More

Obama to announce action on mortgages

About time! Obama to announce action on mortgages By Kate Mackenzie October 24 (Financial Times) — US regulators on Monday plan to unveil a major overhaul of an under-used mortgage-refinance program designed to help millions of Americans whose home values have tumbled, the WSJ says. The plan will streamline the refinance process ...Read More