Senate Votes To Block Obama Jobs Plan
The Senate is busy tonight: on one they have just started a currency war with China, on the other, they are about to force every bank to cut its GDP forecast now that the prospect of incremental future fiscal stimulus has just been kneecapped, following a widely expected failure to vote through Obama's job plan a move that immediately forcedthat pathological of pathologies, the US Treasury Secretary to announce that "the action by Republicans to block the full plan would likely result in weaker U.S. growth." Somehow, it will all be Bush's fault.Senate Passes China Currency Legislation Bill 63-35
So while the US is setting the stage for a possible retaliation against Iranians hiring Mexicans to kill for them, because they obviously can't do it on their own, the US Senate has just passed the China currency legislation bill in a 63 to 35 vote, which in turn will do miracles for Sino-US foreign relations. According to the legislation, it would let companies seek duties to compensate for a weak Chinese yuan. However, as Goldman indicated first thing this morning, the probability of this bill actually being enacted in its current form, or any, is slim to nil: while the Bill is under review by Obama administration, John Boehner, has called it "dangerous." If only he had an idea... Full Goldman take can be found here.Bill Gross Goes Massively Short Cash As He Bets The Newport Farm On Uber Duration
Two
things stand out in the just released September holdings update of
Pimco's flagship Total Return Fund: first, what appears to be a record
cash short of 19% of the fund's total unchanged AUM of $245 billion,
doubling the previous short of -9%. The incremental cash was used almost
entirely to purchase Mortgage Backed Securities, which jumped to 38%
of total from 32%, even as the fund kept its government exposure
virtually flat at 22%( 21% previously). Yet where it gets downright
surreal is the duration and maturity exposure of the fund. Duration has
gone from a record low 3.6 in March to 4.56 in July to 6.27 in August
to... well, just look at the black line on the chart below.Gold and silver ounces for October delivery rises/Vote ongoing in Slovakia
Good
evening Ladies and Gentlemen:
Gold today was whacked by the bankers at the usual 3 am time slot as
gold was hitting $1684 at that time. The bankers were trying to quell
the huge demand for physical metal You can see for yourself the demand
for gold and silver by reviewing the comex data. The price of silver
refused to buckle as it rose by one cent to $31.96
Let us head over to the
Alcoa Posts Disappointing EPS, Sees Growth Slowing
As always, follow the money in the real economy. An investment strategy
based on the timely execution of public policy to save the day tends to
disappoint more often than not. Headline: Alcoa Posts Disappointing EPS,
Sees Growth Slowing Earnings season began today, with a whimper. Alcoa (AA)
shares fell 4.3% in after-market trading as the company said its growth rate
should slow in the second...
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Commodity complex reflecting more optimism related to the European bailout plan
The commodity sector has been slammed by hedge fund long side liquidation
over the last 5 weeks which has basically taken the complex on a one way
ride down and down hard at that. It has now finally bounced as nervous
shorts cover for fear of getting caught overstaying their welcome on that
side of the market should the hedgies' algorithms flip over into the buy
mode over the chatter over European and IMF plans to deal with Greece.
The bounce could take it as high as the zone delineated by the pair of blue
lines drawn on the chart. Should it breach this area with some gusto, it
shou... more »
Gold chart update
Gold took out overhead chart resistance last evening in Asian trade and
looked very strong until trading came around into the London session, where
selling surfaced taking it back down from its best levels and dropping it
into negative territory for the day. Support surfaced just below $1665 level
but the market could not get back into positive territory.
Gold is trying to break out to the upside but is being kept in check.
Silver once again flirted with overhead resistance near $32.50, moved
through it and them promptly failed to hold onto its gains above that level.
It found sup... more »
Corn closes 'limit' up
Corn has been showing heavy accumulation since September. The longer corn
goes limit up, the more likely confidence and patience goes limit down in
cash strapped households. Headline: Corn closes 'limit' up DES MOINES, Iowa
(Agriculture.com)--With corn finishing 'limit up' and the rest of the CME
Group farm futures sharply higher, the stage is set for tomorrow's USDA Crop
Production &...
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content, and more! ]]
No Surprise Here For Me
It was revealed yesterday that the Austrian bank - Erste Group - had $5.2
billion in undisclosed Credit Default Swap (CDS) derivative losses sitting
on - or rather "off" - its balance sheet. Here's a link from zerohedge.com
if you would like to read about the details: LINK
To zerohedge and its slavish readers, this is being described as a
"stunner." But I've been arguing all along that the big banks have
off-balance-sheet problems that are potentially far bigger and more
destructive than what is revealed by the "on-balance-sheet" public
financials. Indeed, this is no "stunner" t... more »
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