Blogger
Michael Snyder: 10-Year Treasury Yield Will Signal Next Financial Collapse - (www.moneynews.com) We
are truly moving into unprecedented territory, because we have been in a bull
market for U.S. Treasurys for the last 30 years," Snyder wrote. "Many
investors don't even know that it is possible to lose money on U.S. Treasurys.
They have been described as 'risk-free' investments, but that is far from the
truth."' He's right. If you are trading Treasuries, or more
likely, invested in Treasury funds, they can depreciate like anything
else. This doesn't apply if you buy and hold them for income, but that
tried-and-true method was basically abandoned for the fast capital gains of
transactional investing in Treasuries in the financialized 80s and 90s. Happily
for Treasury investors over this period, the market simply kept going up (most
likely in large part BECAUSE of the gradual influx of T-fund investors over
that period... Ponzi-style). The corollary is: what happens when the 30-year
bull market reverses, and Treasuries gradually go down for the long term?
Watershed Event To Change History & The
Course Of Markets - (www.kingworldnews.com) Today
one of the top economists in the world warned King World News that a “watershed
event” is about to change history and the course of key global markets.
Michael Pento, who heads Pento Portfolio Strategies, also warned that this
event will shock market participants and send the price of gold, silver, and
the mining shares skyrocketing. “I find it
interesting that after years and years of being told that the Japanese and the
Chinese had no other alternative other than to continue to pile into our
Treasury market, the data just showed that they are net sellers of scores of
Treasuries in the last month. That shows me that the Chinese and the Japanese
are very aware of what is now unfolding. They realize that the threatened
removal of an $85 billion per month bid in mortgage-backed and Treasury bonds
is not an incentive for them to continue buying. And they will sell to
protect their position. That further exacerbates the tremendous amount of
record-setting pressure that exists on interest rates, and downward pressure on
bond prices. You have a Fed that has, for decades, manipulated the price
of bonds, and they raised that intervention exponentially when the Great
Recession started in 2008....
THE
CONFIDENTIAL MEMO AT THE HEART OF THE GLOBAL FINANCIAL CRISIS - (www.vice.com) When
a little birdie dropped the End Game memo through my window, its content was so
explosive, so sick and plain evil, I just couldn't believe it. The Memo
confirmed every conspiracy freak’s fantasy: that in the late 1990s, the top US
Treasury officials secretly conspired with a small cabal of banker big-shots to
rip apart financial regulation across the planet. When you see 26.3 percent unemployment
in Spain, desperation and hunger in Greece, riots in Indonesia and Detroit in bankruptcy,
go back to this End Game memo, the genesis of the blood and tears. The Treasury
official playing the bankers’ secret End Game was Larry Summers.
Today, Summers is Barack Obama’s leading choice for Chairman of the US Federal
Reserve, the world’s central bank. If the confidential memo is authentic, then Summers shouldn’t be
serving on the Fed, he should be serving hard time in some dungeon reserved for
the criminally insane of the finance world. The memo is authentic. I had to fly
to Geneva to get confirmation and wangle a meeting with the Secretary General
of the World Trade Organisation, Pascal Lamy.
Lamy, the Generalissimo of Globalisation, told me,
“The WTO was not created as some dark cabal of
multinationals secretly cooking plots against the people... We don’t have
cigar-smoking, rich, crazy bankers negotiating.”
Then I showed him the memo.
Wells Fargo Said to Eliminate 2,300 Mortgage
Jobs - (www.bloomberg.com) Wells Fargo & Co. (WFC), the biggest U.S. home lender, will eliminate
2,300 jobs in mortgage production because demand for refinancings has slumped
and probably will drop more as interest rates rise. Other smaller cuts were
made in the past few weeks around the country, said people with knowledge of
the matter, who asked for anonymity because the changes haven’t been publicly
disclosed. The reductions would equal about 20 percent of the firm’s 11,406 mortgage loan officers employed as of
March 31. Wells Fargo has said mortgage lending will
slow for the rest of this year as higher interest rates make refinancing less
attractive. Those loans, which made up 70 percent of the mortgage market during
the first half, slid to about 50 percent of applications recently and could
fall further in coming months, Franklin Codel, head of mortgage production for
the San Francisco-based bank, said in a memo to staff yesterday.
French
business slump deepens in August, points to contraction: PMI - (www.reuters.com) France's business slump deepened in August for the first
time in five months, a business survey showed on Thursday, suggesting the economy
may be shrinking after a bigger-than-expected rebound in the second quarter. Data
compiler Markit said its flash composite purchasing managers index, which
covers both the manufacturing and services sectors, fell to 47.9 from 49.1 in
July, after improving every month since April. While the manufacturing sector's
index held steady at 49.7, it missed analysts' expectations that it would rise
above the 50 point line dividing expansions from contractions.
HP Profit Forecast Misses Some Estimates on PC Slump - (www.bloomberg.com)
Wells Fargo Said to Eliminate 2,300 Mortgage Jobs - (www.bloomberg.com)
Wells Fargo Said to Eliminate 2,300 Mortgage Jobs - (www.bloomberg.com)
Fed
Boosts Pressure on Banks Over Capital Levels - (online.wsj.com)
Fed Finds 18 Large Banks Weak in at Least One Capital Area - (www.bloomberg.com)
Fed Finds 18 Large Banks Weak in at Least One Capital Area - (www.bloomberg.com)
HP Profit Forecast Misses Some Estimates on PC Slump - (www.bloomberg.com)
Bond bubble finally bursting? Rates creep up - (money.cnn.com)
Bond bubble finally bursting? Rates creep up - (money.cnn.com)
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