US Really Closer to 'Junk Bond' Status Than to Triple-A: Bove

The US credit rating would be even worse than its recent downgrade from Standard & Poor's if the nation was judged as a private company, banking analyst Dick Bove told CNBC Tuesday

 

 

Government Bonds In The US Are The Short Of The Century

Marc Faber Blog - 2 hours ago

In my opinion, around this level, government bonds in the US are the short of the century. - *in CNBC* *Related ETFs: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT) iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), iShares Lehman 7-10 Yr Treas. Bond (ETF) (NYSE:IEF) * *Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.*





Greenspan Comes Clean and Endorses the 'Zimbabwe-Weimar Solution'










Gerald Celente:  "Economic Martial Law Will Be Declared"

ECB Intervenes In Last Minutes Of Euro Market Trading As Italy Closes Red Once Again

This aggression of a red close in the FTSE MIB will not stand man. Which is why Trichet just went ahead and sent the cavalry to buy another X billion worth of Irish 10 years to send a powerful message that European taxpayer capital will be used to purchase worthless paper that is cash flow bad, until morale improves.

Brian Moynihan Sends Pep-Talk Letter To Employees, Yet Another Morale Crunch Ensues

The last time we saw letters of this nature, John Thain and Dick Fuld were assuring their employees all shall be well. It is about that time again. The CEO of the soon to be bailed out company has just distributed a memo to his "teammates" doing his best to rebuild rock bottom morale, and failing: "Because we serve one in two households in the U.S. and have leading positions with the global Fortune 500 companies here and around the world – a market advantage in most respects – turbulence in the global economy will affect us as well. But we have weathered challenging times before and we will now." Correct: you did so courtesy of $15 billion in TARP funding from the Fed. And we are certain that you will do the same all over again, so you, or actually your imminent replacement can write sentimental drivel such as this all over again. That said, we find it truly shocking that there is no mention of the fact that Bank of America is about $20-50 billion underprovisioned for the perfect litigation storm that is coming courtesy of the worst transaction in M&A history: BAC's purchase of CFC.

The Volume Speaks Volumes... Again

The levitation resumes. And as expected, the second this happens the volume divergence from average goes red. Good to see that no matter how big of a beating they experience, the robots will always be here, apocalypse or shine. In the meantime, the carbon-based whales are sitting on the sidelines until 2:15 pm. Anything less than the expected from the gospel of St. Chairsatan will promptly push the volume bar from red to green, and the direction of stocks (inversely) appropriately.

Macro Commentary: The Endgame Of TBTF Banks And Rising Rates

Global markets are stabilizing a bit after authorities worldwide are pulling out all the stops to stem the bloody tide. Greece and South Korea have followed Italy’s recent lead and even banned the short-selling of equities. Brazilian Finance Minister Mantega said the G-20 was prepared to take action to calm the global crisis. The concerns over the debt levels of Italy, a country which is Too-Big-To-Bailout, are quickly spreading to the US as Citigroup and Bank of America both fell over 15% yesterday...No matter which way you turn, all roads lead to the TBTF banks, their leverage and the $700tr derivatives market. Until these issues are resolved, we will continue to go through bouts of panic, instability and market routs. The entire global economic system is threatened by the continued status quo regarding our TBTF banks and the global derivatives market. Everything else is just noise. Governments can be upgraded or downgraded, currencies can rise and fall and equity markets can rally or sell-off. But if one of the TBTF banks collapses, the game will change immediately to one of fear and collapse as the size of the potential asset write-downs that will follow is simply overwhelming.

European Funding Concerns Keep Kneejerk Euphoria In Check

The same robots that accelerated the selloff yesterday, are in charge of the buying this morning, as the mean reversion signals kick in, potentially with a helping hand from the Citadel/FRBNY JV. Yet the "all clear" is nowhere to be found, and in fact confidence continues to evaporate.Today, investors and risk managers have once again shifted their attention across the Atlantic, where the epicenter of this morning's unease is to be found once again in the form of European funding concerns. Exhibit A is the Euribor/OIS spread which at +5.4 bps, and rising, is now at 46.8 bps, the highest since June 2009 (see chart below). Add to this yet another day of unprecedented strength in the Swiss Franc which has now undone all SNB intervention from last week, courtesy of ongoing bank runs across Europe which will be disclosed to the broader public only once it is too late, and we are fairly confident that absent very encouraging language from the Fed, the market's focus will once again shift to Europe and its ridiculously insolvent bad bank, the ECB, at which point the algos will have no chance against yet another onslaught of global selling.






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