I still think "they" are primarily interested in preserving the system. "We" are expendable.
If they are playing the Japan playbook you would think they are aware of the differences and how it would be worse here.
Eventually China / Japan comes to their senses and cuts off the welfare pig (U.S.) China is in a better position to just help itself.
There were other comments yesterday regarding FED action effect on the dollar, gold, and oil. Most notably the falling dollar putting rest of the world into their own protectionism modes.
I'm not educated in any of this crap, so I just make do with what's in my head.
My opinion overall has been you can't consume your way out of overconsumed debt.
Gov't pig policies will suck what's left of productivity out and just compound the problem.
Thursday, March 19, 2009
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8 comments:
I used to think schiff really had it wrong but now at this point I am a little concerned that schiff was just early...
I forgot to mention that I noticed the blog name change. That sounds cool. Fortunately I never had to explain the previous name to the wife.
It is this (i always loved the term texas hedge...like texas wedge in golf) or "quantitative erasing"
texas hedge has nothing to do with you WTH...typically you are far more risk adverse than myself...I just really like the term...
ohhh approaching decision point right not...(on the spoos)
OH PS...
last night as i was falling asleep i really started to wonder what sedacca would be writing about today...what he would be saying...man oh man he was a good dude...
http://tickerforum.org/cgi-ticker/akcs-www?post=87868
"From the wires.. no link:
(RU) REPORTEDLY RUSSIAN SOURCES ARE HOLDING CONVERSATIONS WITH CHINA AND OTHER EMERGING ECONOMIES ON WHETHER USD SHOULD BE USED AS MAIN RESERVE CURRENCY
- Conversations were held with other BRIC and emerging economies
- Have in the past sought to move towards a more shared basket reserve currency USD/RUB USD/CNY RSX FXI SHY EEM "
http://www.reuters.com/article/usDollarRpt/idUSLJ93633020090319
"China backs talks on dollar as reserve -Russian source"
I did do kind of a double-take on the "Texas Hedge". There are times when I have resembled that tho.
I think Sedacca would have written something along the same lines. He would have expanded on the mbs and T-paper a little more. More than likely he would have went long bond for a short term trade and also traded the mbs if and when presented. Would have been very good reading. Like I've said many times, he was the best for me.
I posted at the TF thread for Russians and friends to just do it. LOL
I think Ben and friends are scared...best thing to do is just come out and lay it all out on the table. The longer the delay, the more pain.
we all have resembled that at times...just cant figure out why the call it a "texas hedge"...i mean texas wedge i get cause the grass gets burnt out and ground gets rock hard in some places of texas...at least back in the day before super modern irrigation...
i am still trying to digest all of this crap...man it has me really fuct and sorta thrown for a loop...at this point tho i would sorta like to see the chinese call the US's bluff...instill a little humility in the bellies of our congress crooks
agreed about ben and also the delay BS...
your right sedacca was awesome and I only wish I had discovered his writings earlier...its sorta ironic that he passes on the day before bernanke takes another move in the grand experiment...
Hehe...you were asking.
http://www.minyanville.com/articles/index/a/20662
Bennet Sedacca Jan 14, 2009 3:15 pm
Instead of playing this carry-trade game -- selling bills at 0.1%, buying 10s at 2.25%, and buying mortgage-backed securities in an effort to artificially put a bid under the market, why not do the following:
As I've been pointing out for years now, you can put capital into the market, you can inject TARP funds into banks (and get ready for more of that), but you can't force someone to seek credit.
Which explains why all of these shenanigans aren't working yet.
So why not sell $1 trillion in 10s with yields all the way up to 3.5%? Granted, selling a trillion bonds would move the market - but there's lots of wiggle room with a beginning level of 2.25%.
So the 300 or so mortgage lenders that have folded up could be replaced with... Uncle Sam's Mortgage Company.
Uncle Sam then turns around and sells 4% mortgages (undocumented liar loans without appraisals) and all sorts of flexibility? Granted, this would hurt the premium mortgages I own (although I've sold a lot lately into Uncle Sam's and the TARP money bid) - but it might get rid of some housing inventory
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