Recent comments by Rajesh

shill wrote:

All Draghi did was pour gasoline on an already roaring flame.

At least he's doing something!

Comrade Gibbon wrote:

Because that forces local debtors and banks to take all of the risk of internal deflation

I think that was the whole point of monetary union: to force internal deflation.

Mission Accomplished!

sporkfed wrote:

When income doesn't keep up with outflow then you got a problem.

Unless you're Argentina or Japan.

Money-Market Rates Rebound Above Zero After Quarter-End Pressure - Bloomberg

One-month Treasury bill rates reached as high as 0.0152 percent, after falling to as low as negative 0.0051 percent yesterday.

Money-market funds and other cash investors received zero percent on $300 billion at the Federal Reserve overnight repurchase agreements facility yesterday. Bids seeking the safety of investing with the central bank exceeded the cap that was set last month by more than $100 billion.

“Rates on bills and repos have stabilized to a more normal environment,” said Ira Jersey, an interest-rate strategist at Credit Suisse Group AG in New York, one of 22 primary dealers that trade with the Fed. “Some dealers, who need to get reduced balance sheets at quarter end, are now able to increase it, and that has created more liquidity.”

The average rate for overnight federal funds, known as the fed effective rate, was 0.07 percent yesterday, matching the lowest since March 31.

The Fed last month put the $300 billion cap on its repo program, which it is testing as a way to set a lower boundary for money-market rates and aid them when they eventually increase benchmark borrowing costs.

Today, the Fed took $212.5 billion in cash in at the repo facility, the second largest amount on a daily basis that didn’t coincide with the end of a three-month period. The rate on the agreements, since the cap wasn’t breached, was at 0.05 percent today.

Eighty-three percent of those who bid at the zero percent stop-out rate yesterday, which was the highest rate of bids that were accepted, were awarded the agreements, according to the Fed Bank of New York’s website.

The percent allocated at the stop-out rate signals that there was very little bidding below zero, according to Thomas Simons, a government-debt economist in New York at Jefferies Group LLC, also a primary dealer.

It's not really a super Now back to the yacht race without a Its a chopper, baby hanger.
Super-Yacht Helicopter Hangars Become ‘Le Must-Have’ in Monaco - Bloomberg

To the super-rich, for whom time is a lot of money, the latest must-have luxury-yacht trapping is a helicopter hangar.

Helicopters ferrying passengers to yachts moored in turquoise waters from the Mediterranean to the Caribbean are becoming commonplace. Now, these floating palaces are being outfitted with built-in hangars so cruise aficionados can park their choppers onboard and make impromptu jaunts back to shore without the hassle of scheduling one.

“I recently had an appointment with a guy who was late because he got stuck on his nice fancy yacht near Cannes,” Sebastien Moulin, regional manager for Europe at Bell Helicopter, said in an interview at the Monaco Yacht Show last week. “The sea was rough. With a helicopter he could have come any time he wanted.”

Amidst the hundreds of super-yachts packed into Port Hercules for the annual Riviera trade fair, helicopter-makers Bell and rival Airbus Helicopters showed off their wares. Vying for wealthy customers with little time and lots of cash, they say that within the growing corporate and private yacht market, a niche is developing for the regular use of the aircraft.

“Yachts are becoming much longer and can accommodate hangars,” Moulin said in the interview beside one of Bell’s models perched on a 63-meter boat in the middle of the show. “The market is very obviously changing.”

Argentina’s Pesofication Bill Picked Back Up in Congress - Bloomberg

Argentine lawmakers are considering a law that would allow debtors to pay lenders in pesos rather than foreign currency, sparking concern among some creditors that the country may try to apply the option to its own obligations.

The lower house today started debate on the proposal, which is wedged into a broader bill covering same-sex marriage, adoption and divorce. The Senate approved the changes to the civil code almost a year ago.

The proposed changes, which wouldn’t take effect until 2016, have kindled concern among creditors that the cash-strapped nation will try to use pesos to repay foreign-currency bonds issued under domestic laws, according to Puente Hnos Sociedad de Bolsa SA. Foreign reserves used to pay debt have tumbled about 40 percent over the past two years to $28 billion.

“The feeling is that the government is indeed going toward a pesofication option in the new civil code,” Alejo Costa, strategist at Puente in Buenos Aires said in an e-mail. “At the end of the day, for local-law bonds, the real risk is the drain in reserves.”

Argentina Central Bank Head Fabrega Resigns, Spokesman Says - Bloomberg

Argentine central bank President Juan Carlos Fabrega resigned today less than 24 hours after President Cristina Fernandez de Kirchner publicly criticized the institution for allegedly leaking inside information.

Fernandez will nominate securities regulator Alejandro Vanoli as a replacement, presidential spokesman Alfredo Scoccimarro told reporters in a conference call. Vanoli would be Argentina’s fourth central bank president in less than five years.

Since taking the job in November, Fabrega oversaw the largest devaluation of the peso since 2002 and pushed the interbank interest rate used as the benchmark by the local financial system to a decade high. After Argentina defaulted for a second time in 13 years in July, Fabrega faced pressure from Fernandez and Economy Minister Axel Kicillof to slow the depreciation of the exchange rate in spite of dwindling foreign reserves, said Alejo Costa, a strategist at Puente Hnos Sociedad de Bolsa SA.

“Fabrega wanted to bring forward a devaluation, something neither Fernandez nor Kicillof was prepared to do,” Costa, who studied under Vanoli at the University of Buenos Aires, said in a telephone interview. “Vanoli appears as someone who will be more receptive to the demands of Kicillof and Fernandez. We might see more creative ideas, such as the arrival of a dual exchange rate.”

For those people who invested in emerging markets:
Brazil Market Rout Deepens as Rousseff Surges in Polls - Bloomberg

Brazilian stocks plunged for a third day, pushing the benchmark gauge down 7.6 percent this week, and the real sank to a five-year low as investors abandoned wagers that elections will bring a new government into office capable of turning around the slumping economy.

Petroleo Brasileiro SA, the state-controlled oil company, and government-run utility Centrais Eletricas Brasileiras SA both tumbled to 17-week lows. The real lost 1.4 percent to the weakest since December 2008 as HSBC Holdings Plc predicted the currency may extend losses by year-end if there’s no policy change after the vote. The first round is scheduled for Oct. 5.

Investors who bid up the prices of Brazilian stocks, bonds and the real earlier this year as polls showed a surge in support for opposition candidates are reversing course after the most recent surveys signaled President Dilma Rousseff is likely to win a second four-year term. Under her watch, inflation has quickened beyond the government’s target even as Brazil fell into a recession, while government policies that limit the prices Petrobras can charge for fuel brought about four consecutive quarters of falling profit.

“It’s a slow bleed,” Felipe Rocha, an analyst at Guide Investimentos, said by telephone from Curitiba, Brazil. “Investors are notoriously worried about Dilma being re-elected. We’re likely to continue to see a drop in asset prices.”

About $215 billion has been wiped from the value of Brazilian shares since the Ibovespa reached this year’s high on Sept. 2, according to data compiled by Bloomberg. The gauge has slumped 15 percent in the span while the iShares MSCI Brazil Capped exchange-traded fund tumbled 22 percent. The Ibovespa dropped 2.3 percent to 52,858.43 today, the lowest since June 5.

They need to have a class on using an iPod, maybe hacking the DRM on the tunes.

Europe is still struggling with cash out of nothing technology.
ECB to flesh out asset-purchase plan it hopes will buoy euro zone
| Reuters

The European Central Bank will present details on Thursday of a new asset-buying plan with which it hopes to revive the flagging euro zone economy and see off the specter of deflation.

The ECB plans to buy asset-backed securities (ABS) - packages of reparcelled loans - with a view to spurring the market for such credit and supporting lending to the small- and mid-sized firms that form the backbone of the euro zone economy.

But for the plan to apply across the bloc, the central bank may need to buy ABS paper below the standard it usually requires for collateral offered up by those tapping its funding operations.

T minus thirteen months and counting...

CME Group FedWatch

Brent Tumbles to 27-Month Low After Saudis Cut Prices - Businessweek

Brent crude dropped to the lowest level in more than two years after Saudi Arabia cut its November official selling prices to all areas. West Texas Intermediate crude slipped to a 17-month low.

Both grades retreated after the Saudi Arabian Oil Co. trimmed its benchmark Arab Light prices to customers in Asia, Europe and the U.S. WTI rose as much as 2 percent earlier as the U.S. Energy Information Administration said the country’s crude supplies slipped 1.36 million barrels to 356.6 million.

“The Saudi price cut is a sign that they won’t be cutting back production further and may be setting up for a market share battle,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone. “One bullish inventory report isn’t going to be enough to support the market when the Saudis are taking these actions.”

shill wrote:

all these Viruses and old diseases that were wiped out in the 1950's are now all the rage...

Communism is back?

mr_clueless wrote:

disproportionate to the average hcn user.

The number of first comments is proportional to the poster's intelligence.

Former Idealist wrote:

Now THATS normal!

It's a little high. Probably just a low grade fever.

Former Idealist linked:

Sheila Bair: Fed's Reverse Repos Could Cause Major Problems

Sheila Bair: Fed's Reverse Repos Could Cause Major Problems Interest Rates to not fall Fixed It For Ya

ResistanceIsFeudal wrote:

But with three heads they'll have to find a new name.

Cerberus is taken

Firemane wrote:

... next year's maps will include a new country - PERSIA ...

... next year's maps will include a new country - PERSIA East Alabama ...

Vonbek777 wrote:

Iceland is an interesting place.

Everyone's a fourth cousin.

FEATURE-Recession looms over Venezuela, official data under wraps
| Reuters

Private industry groups estimate that the construction and manufacturing sectors - both crucial to broader growth - shrank as much as 10 percent in the first half of the year.

Retail sales chamber Consecomercio says sales fell about 50 percent during the same period, the result of weaker consumer sentiment and tight currency controls that have forced a sharp decline in the availability of imported goods.

"The economy is sick," Jorge Roig, president of the main private industry group Fedecamaras and a frequent critic of the socialist government, told Reuters. "Industries are working far below their capacity due to a lack of raw materials."

Fedecamaras estimates the OPEC nation's economy has contracted 4 percent so far this year.

Strong oil prices, heavy government spending and firmer results in other industries like banking and telecommunications have helped prevent an even steeper decline, but the economy is clearly struggling.

Venezuela's Maduro accuses airlines of waging 'economic war' - LA Times

Venezuela’s currency, the bolivar, hit a new low on black market exchanges Tuesday, and President Nicolas Maduro has lashed out at international air carriers for waging “economic war” in trying to collect the $3.5 billion the government owes them in ticket revenue.

Unofficial currency traders were offering 100.93 bolivars to the dollar, more than 10 times the official rates of 6.3 bolivars (applied at banks and to government purchases of foreign goods and services) and 12 bolivars to the dollar for some businesses. A limited amount of greenbacks are available to some bidders at 50 bolivars to the dollar.

The scarcity of dollars in Venezuela means businesses and private individuals buying foreign goods or planning international travel resort to the black market to buy greenbacks. The demand-supply imbalance at currency traders has caused the cost of dollars to skyrocket.

Meanwhile, in a speech televised to the nation late Monday night, Maduro reacted angrily to the airlines’ ongoing campaign to collect the balance due to them.

“I’ve asked the vice president to resolve this situation and tell [the airlines] one by one, “Do you want to work in Venezuela? We need a radical solution for this economic war. ... If only one [airline] is left, then there will be only one,” Maduro said. Airlines clamoring for payment constitute “efforts to strike at us nationally, internationally,” Maduro said.

How dare the airlines expect to be paid for flying people in and out of Venezuela!

I would share my misery but it's visiting Argentina at the moment.

yuan wrote:

Judge Greasy threatens to fine Argentina for paying it's debts:

Judge Greasy threatens to fine Argentina for not paying it's debts: Fixed It For Ya

Whiskey wrote:

panicking over ISIS

Tell them the U.S.-Syria border is well guarded.

Argentina defies U.S. court order by depositing debt payment
| Reuters

Griesa on Monday held Argentina in contempt and issued a warning that the government must stop trying to get around his rulings. [ID:nL2N0RU1RX]

Argentine President Cristina Fernandez reacted with typical defiance on Tuesday, saying she was not surprised by his ruling and would not be surprised if he issued sanctions.

"Perhaps they will arrest me next time I go to New York, but let me be clear, I'm going to go anyway," she said in a fiery speech at the presidential palace, the "pink house".

robj wrote:

In what sense of service does Argentina "service" its debt?

The government of Argentina is re-defining 'default'. It's no longer about whether bond holders get paid or not. It's the thought that counts.
So Argentina only has to think about paying.

Argentina defies U.S. court order by depositing debt payment
| Reuters

Argentina deposited a $161 million bond interest payment with a newly appointed local trustee on Tuesday, the Economy Ministry said, defying a U.S. judge who held it in contempt a day earlier for taking illegal steps to meet its debt obligations.

The country wants to show it can service its debt and that its failure in July to complete a payment to holders of bonds that were restructured after its 2002 default was the result of adverse U.S. judicial rulings.

"By making this deposit, Argentina confirms once again its unshakeable commitment to meet its obligations to bondholders," the ministry said in a statement.

It was not clear how many bondholders would receive their coupon payments before the end of the Sept. 30 deadline without the assistance of foreign financial intermediaries, which could violate the U.S. court orders if they aid Argentina.

Luxembourg-based clearing house Clearstream said it always abided by court rulings, and a source at the trustee bank, state-controlled Nacion Fideicomisos, acknowledged little of the deposit had been transferred to creditors.

arthur_dent wrote:

I think it has more to do with the end of QE.

In remarkably horrible timing, QE is endings just as the Chinese financial system is soaking up liquidity to handle the fallout of the property bubble.

Perfect storm.

So much a running a successful bond fund is in the tactical rather than the strategic. It's better to buy a bad bond at a good price than to buy a good bond at a bad price. Certainly, getting the direction of interest rates and credit spreads right can give a bond fund an extra boost, but bonds are not as volatile as stocks and bonds are generally less liquid so details matter more.

sm_landlord wrote:

Who knew that weaponized code would eventually be used for crowd control?

Hu Knows

Hu Knows Im Lovin It!
China Eases Property Restrictions Amid Growth Concern - Bloomberg

People applying for a loan to buy a second home may get lower down payments and mortgage rates that were previously only available to first-time home buyers so long as they have paid off their initial mortgage, the People’s Bank of China said in a statement on its website yesterday. The central bank also eased a ban on mortgages for people buying a third home.

The action marks a reversal in a four-year tightening campaign, as slowing property investment and industrial production raise risks that 2014 economic growth will drift too far below the government’s target of about 7.5 percent. The relaxation follows easing this year targeted at boosting lending for agriculture and small businesses.

“It clearly shows that there’s a bottom line in tolerating an economic slowdown,” said Shen Jianguang, chief Asia economist at Mizuho Securities Asia Ltd. in Hong Kong. “The move greatly reduced risks of a hard landing.”
...
Chinese residents had been becoming more pessimistic about housing-price gains in the third quarter compared with the previous two quarters, according to a survey of 5,000 households conducted by the Survey and Research Center for China Household Finance, released this week.

Policies had been ineffective in boosting housing prices, the center said in a statement, likening them to “a cup of water trying to extinguish a wooden cart on fire.”

Quick, fetch a pail!

Dollar Gains Bolster Fed’s Patience on Interest Rates - Bloomberg

The dollar’s strongest year since 2008 is a source of growing concern among some Federal Reserve policy makers, who say further gains have the potential to curb economic growth and keep inflation too low.

Atlanta Fed President Dennis Lockhart, New York’s William C. Dudley and Chicago’s Charles Evans have all said in the past week they are watching the dollar as officials debate the timing of the first interest-rate increase since 2006. A strong dollar tends to restrain exports by making them more expensive, holding back growth, while reducing the cost of imported goods.

“We’re going to take that into account, the way it’s affecting the economy in terms of net exports and GDP growth and what it means for our inflationary developments,” Evans told reporters yesterday after a speech in Chicago.

Evans and Dudley are among policy makers who argue that the Fed can afford to be patient on raising interest rates, and that tightening prematurely poses a greater risk to the world’s largest economy than waiting too long.

“They are worried about the durability of the labor-market recovery and inflation still running below their target, and the dollar feeds into that,” said Guy Berger, U.S. economist at RBS Securities Inc. in Stamford, Connecticut.

The hard landing in China is supercharging the dollar.

sm_landlord wrote:

they seem to having a sale.

Wait for $700/oz In glod we trust
I wouldn't touch Hi Ho Silver, Away!

Bad Dawg Bobby wrote:

time to hunker down.

Get your duct tape stockpile ready!

arthur_dent wrote:

there is an implied put holding the whole thing together.

What the difference between an implied put and an imagined put?

Vonbek777 wrote:

So why do we try to kill both in the minds of children today?

We have to stop the terrrrrrrorrrist.

There are patterns everywhere. And if they are not there, we still see them!

Jackdawracy wrote:

Wasn't Jeane Dixon a pretty standard fixture in the National Enquirer?

You predict one little presidential assassination and you're forever labeled a psychic!

Find me a one handed economist!
Why slower home price gains are cause for both alarm and celebration - The Washington Post

The most disastrous results of the housing bust are tied to the steep drop in home values, which left millions of people "underwater," meaning they owed more on their mortgages than their homes were worth. Some of those people lost their homes to foreclosure because they were unable to refinance or sell their way out of trouble. In that context, the dramatic rise in home values that started in early 2013 has been good news for underwater borrowers, with nearly 950,000 homes returning to positive equity in the second quarter alone, the research firm CoreLogic reported this month.

But the fact that home price gains are moderating is equally good news for the housing market, which is struggling to fully recover. The high prices are pushing potential buyers out of the market and hurting home sales, which remain below historic norms. Many economists agree that the double digit price gains posted in recent years were unsustainable, and the pullback that's taken place in the last few months is a welcome development.

Jeane Dixon - Wikipedia, the free encyclopedia

President Richard Nixon followed her predictions[citation needed] through his secretary, Rose Mary Woods, and met with her in the Oval Office at least once, in 1971. The following year, her prediction of terrorist attacks in the United States in the wake of the Munich massacre spurred Nixon to set up a cabinet committee on counterterrorism.[13] She was one of several astrologers who gave advice to Nancy Reagan.[14]

Lunar eclipse (in Aries) is coming up October 8.

Microsoft names next operating system 'Windows 10'
| Reuters

The next version of Microsoft's flagship product, which still runs the vast majority of personal computers, is aimed at recapturing the lucrative business market, which generally ignored the new-look Windows 8.

Windows 10 will be "our greatest enterprise platform ever," said Terry Myerson, Microsoft's head of operating systems, at an event in San Francisco. Only 20 percent of organizations migrated to Windows 8, which was released two years ago, according to tech research firm Forrester.

He said Windows 10, long known by the project name 'Threshold' internally, represented a new type of system for the company, as it seeks to unify computing as mobile devices proliferate. The name represented that leap, he said.

Version Inflation! It hasn't been this bad since Word 2.0 was followed by Word 6.0.

If you torture the data enough, it will tell you what you want to hear.

Belmont wrote:

Europe needs to rev up the QE engine and print like crazy.

Some assembly required.

Euro zone inflation slows in September, weakens euro versus dollar
| Reuters

Eurostat said consumer prices in the 18 countries sharing the euro rose 0.3 percent year-on-year, slowing from 0.4 percent year-on-year increases in August and July. The September was in line with market expectations, according to polling data.
...
What the European Central Bank calls core inflation - a measure stripping out these two volatile components - was 0.7 percent year-on-year, slowing down from 0.9 percent in August.

sm_landlord wrote:

Selling prices in my nabe are roughly 66% of the peak.

Fibonacci Resistance?

National index? Who cares what happens in flyover?