Nothing to See Here - Move Along!
Hi all, Below is daily newsletter from Mr. Larry Levin on Nov 17th.
"Now that QE2 is here and the Federal Reserve will be pumping $7 to $8-BILLION PER DAY into the system this week alone, there is nothing to worry about…anywhere.
As I typed out the following world wide “issues” I kept thinking of Benron Bernanke saying “Nothing to see here – Move along.” Yeah, right.
Greece
ATHENS (AFP) – Greece acknowledged Monday it would breach conditions for a new installment of a 110-billion-euro bailout as the IMF and European Union began an audit of the country's austerity measures.
Greek bond yields, a measure of investor confidence in the country's finances, rose on Monday, with the rate on 10-year paper up to 11.280 percent from 11.184 percent on Friday.
Portugal Joins Greece
(FT) - Mr Teixeira Dos Santos also said that the average cost of borrowing for Portugal was 3.6 per cent. If rates stayed the same for the next three years, then the average cost of borrowing would increase to 4.9 per cent, he added – lower than the expected cost of borrowing of 5 per cent for a country that uses the EFSF.
Although Portugal is not in the same league as Greece and Ireland, yet, it sure is coming on fast. But no worries, Helicopter-Ben will soon shower all of Europe with freshly minted IOUs.
AAA Rating
(Market News) - Clearly, an extension of the tax cuts that had been implemented by the Bush administration in 2001 and 2003 “is not good” from a deficit/debt perspective, but such a measure, if temporary, would not immediately jeopardize the U.S. sovereign rating,” Moody’s lead analyst for the United States told Market News International Monday.
He cautioned, however, that, “A permanent extension of the tax cuts would be a definite negative.”
And over the medium term, pressures on the sovereign rating could develop if the country does not adequately address its debt trajectory.
And over the medium term, pressures on the sovereign rating could develop if the country does not adequately address its debt trajectory.
Hmm, a warning of a U.S. debt downgrade, eh? What’s that Benron? “Nothing to see here – Move along.”
Trade well and follow the trend, not the so-called “experts.”
Behold the age of infinite moral hazard! On April 2nd, 2009 CONgress forced FASB to suspend rule 157 in favor of deceitful accounting for the TBTF banksters.
Larry Levin
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