Follow Me As I Model The First Pan-European Bank Run In Damn Near Real Time

Posted by: Reggie Middleton

Post date: 09/21/2011 - 20:18

Make your moves BEFORE Europe's "Lehman Moment" arrives - for if when it does, most nations will be powerless to do anything about it.

 

 

IMF to Bernanke: Thanks For Nothing, As Threat To International Monetary System Looms

We suspect the world was placing a little more 'hope' in Bernanke's willingness to print-and-save-us-all as the IMF just announced the activation of its "New Arrangements to Borrow" for a further six months. Obviously, given the quota subscriptions and the nature of the NAB, we suspect the rest-of-the-world will get pound of flesh (or USD bailout) implicitly. This is not completely unexpected as we have been discussing the rise in borrowing arrangements/facilities at the IMF for a while - what is notable is the timing - given constant chatter out of Europe that all is 'satisfactory'.

Fed commences Operation Twist for 400 billion dollars (start of QEIII), gold and silver raided in access market.

Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 1 hour ago

Dear Ladies and Gentlemen: The farce continues with the USA government is control over the precious metals market.  They kind of lost control of the Dow today as it fell 282 points.  The Fed announced the first stage of QEIII with a 400 billion dollar program of buying longer ended bonds and selling shorter term paper.  The balance sheet of the Fed will still be sterile as it temporarily does

CNBC Million Dollar Portfolio Challenge - Thursday, Week 1

Bonus Bucks for Thursday, September 22

1.  What is the 8th most popular city for business?
B.  Madrid
2.  What is the 31st most safest bank in the world in 2011? (most safest?)
C. Cassa Depositi e Prestiti Turin, Italy
3.  In CNBC.com’s “Top 10 Green Cars 2011,” how is the Lexus CT 200h described?
B. “Sporty, little premium hatchback”

Why Goldman Is Surprised By The Market's Reaction To The Twist, And What's Next For The Fed?

After spending the last few weeks 'helping' the Fed with its agenda, Goldman Sachs' Andrew Tilton seems a little disappointed by the market's reaction - reasoning that the FX and equity-investing plebeians will take longer to  comprehend the less familiar 'twist' operation that has already been wholly discounted into the TSY curve. While he did not get all he wanted from this meeting (even though the 'twist' was larger than expected), Hilton wastes no time in looking to the future and the chance of further economic weakness leading to more dramatic Fed actions. As we post 30Y is now -27bps!!

WH and Fed sleeping together

Posted by: Bruce Krasting

Post date: 09/21/2011 - 15:18

Bernanke shot back at the Republicans today. He's facilitating a mortgage deal that will help the WH. The Republicans are going to fire right back.

Swiss People's Party proposes ban on central bank's gold sales

 

 

Fed Notes Significant Downside Risk To Economic Outlook

September 21, 2011, at 2:22 pm
by Jim Sinclair in the category General Editorial |  Print This Post |  Email This Post

Dear CIGAs,

The key element in this statement is “significant downside risk to the economic outlook” followed by “introduction of operation Twist, an ineffective strategy that will lead back to QE.” This is basically pro-gold, anti-dollar regardless of how the market has reacted. That is an undeniable reality as the accordion shaped chop in the price of gold continues.

The third skier illustration is the final result of the “significant downside risk to the economic outlook” contained in today’s Fed statement.

(FED) FOMC Statement September 21, 2011
Written by Federal Reserve | Sep 21 11 18:23 GMT
Information received since the Federal Open Market Committee met in August indicates that economic growth remains slow. Recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated. Household spending has been increasing at only a modest pace in recent months despite some recovery in sales of motor vehicles as supply-chain disruptions eased. Investment in nonresidential structures is still weak, and the housing sector remains depressed. However, business investment in equipment and software continues to expand. Inflation appears to have moderated since earlier in the year as prices of energy and some commodities have declined from their peaks. Longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee continues to expect some pickup in the pace of recovery over coming quarters but anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Moreover, there are significant downside risks to the economic outlook, including strains in global financial markets. The Committee also anticipates that inflation will settle, over coming quarters, at levels at or below those consistent with the Committee’s dual mandate as the effects of past energy and other commodity price increases dissipate further. However, the Committee will continue to pay close attention to the evolution of inflation and inflation expectations.
To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee decided today to extend the average maturity of its holdings of securities. The Committee intends to purchase, by the end of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years to 30 years and to sell an equal amount of Treasury securities with remaining maturities of 3 years or less. This program should put downward pressure on longer-term interest rates and help make broader financial conditions more accommodative. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.
To help support conditions in mortgage markets, the Committee will now reinvest principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. In addition, the Committee will maintain its existing policy of rolling over maturing Treasury securities at auction.
The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.
The Committee discussed the range of policy tools available to promote a stronger economic recovery in a context of price stability. It will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools as appropriate.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Sarah Bloom Raskin; Daniel K. Tarullo; and Janet L. Yellen. Voting against the action were Richard W. Fisher, Narayana Kocherlakota, and Charles I. Plosser, who did not support additional policy accommodation at this time.
Link to full statement…




Greece Deepens Pension Cut, Extends Property Tax Hike

Greece said it would deepen pension cuts, extend a painful property tax hike and put tens of thousands of workers on notice on Wednesday to secure a new injection of aid and save the country from bankruptcy.

Quote of the day...

"IF YOU VOTED IN 2008 TO PROVE YOU ARE NOT A RACIST,
PLEASE VOTE IN 2012 TO PROVE YOU ARE NOT AN IDIOT."

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