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  • German ZEW Investor Confidence Plummets!

    In This Issue..

    * Currencies move back and forth...
    * A HUGE hickey for us from Fannie and Freddie...
    * The Chinese respond to Geithner...
    * Canada GDP to reach pre-recession levels?

    Good day... And a Terrific Tuesday to you! Well, day one of me basically by myself this week is put in the books... A non-event... A dentist appointment was all the excitement I had last night!

    Well... That risk assets rally that we were watching yesterday morning, ran into a speed bump around noon... Yes, the euro was nearing 1.23, Aussie was looking as though it would touch 87-cents, and so on... But then along came Moodys... Talk about bad timing! Ok... Let me set this up for you...

    ...
  • Bailout Package For Greece Put On Hold...

    In This Issue..

    * Euro rally fades on latest Greek development...
    * Brazilian real rallies...
    * Canadian loonie ratchets higher...
    * Another Geithner smoking gun?

    Good day... And a Tub Thumpin' Thursday to you! It's Tub Thumpin' because... I say so! Every day's a new day... And for someone like me that had two strikes called on me before I knew the pitch was even coming... Every day is special!

    I want to thank every one that sent along a note of good wishes, and advice to tell the people that decide that email is a good way to ruin someone's day, good riddance... I'll have more on this in the Big Finish...

    But what a day the currencies had yesterday! The euro gained ground all the way back to 1.3730 (but saw some profit taking at the end of the day) and all the other currencies followed in step... Now... There's two ways to look at this... Either the euro is like a star that's getting ready to burn out... (it always shines brightest before it burns out), or... It's like a star that had been covered up by another planet, and is coming back into view!...
  • Green Light, Green Light!

    In This Issue..

    * FOMC minutes make it a Risk On Day!
    * Gold hits $1,180!
    * Germany's ZEW is bang on with their forecast!
    * Russia to buy loonies?

    It's a Risk On Day, full on, no 'kind of' today! Or at least that's how it looks as I begin to write this morning... The Big Dog, euro, is back over 1.50 this morning, and Gold is trading at $1,177! What brought about this full on Risk On day?

    Well... It was the Fed's FOMC meeting minutes... And, when I read what the Fed Heads had to say, I had one song in my mind... Hey! You! Get off of my cloud! Because that's where their collective heads are with these minutes, folks... The Fed Heads viewed the U.S. economy on firmer footing and expects the growth to continue in the 4th QTR... Yeah, right, and I've got some swamp land I'd like to sell you! Snake Oil salesmen these guys!

    Any way... The Fed Heads also said that the dollar's depreciation had been 'orderly'... With no mention of doing anything to stop the depreciation! Green light, Green light, Green light... How many of these Green lights do traders and you need to realize that the Fed isn't going to stop the dollar's decline? And How about the Treasury? Oh! That's right, they're too busy shoving negative yields down people's throats! OK, I'm getting all ticked off, and I really don't feel like doing that today, so I'm going to talk about something else, fast!...
  • Treasury Issuance Hits Record Amounts!

    In This Issue..

    * It's a Risk On Day... Kind of...
    * Gold hits $1,171!
    * Germany's IFO hits a 15-month high!
    * Even the NY Times talks about deficit spending!

    Good day... And a Terrific Tuesday to you! A Risk 'kind of' On Day... Which I believe will be difficult to hold on to as we draw closer to Thursday. The volume will dry up, like I said yesterday like using a Sham Wow (Vince where are you?) and... There will be all kinds of position squaring ahead of Thursday, for many traders, including yours truly, will be making this a 4-day holiday weekend, and good traders do NOT leave themselves out on a line with open trades before leaving for 4 days!...
  • German Business Confidence Slides...

    In This Issue..

    * Currencies trade in a tight range...
    * $81 Billion in Treasury auctions this week!
    * Fitch fans the flames of a fire in the U.K....
    * Aussie Business Confidence rises...

    Good day... And a Terrific Tuesday to you! I didn't start out this Tuesday on the right foot, and now I'm really running late! Oh well...

    The non-dollar currencies didn't move much yesterday, the euro bumped up and down against the 1.50 figure, while the A$ did the same against 93-cents, and Swiss against parity... So the currencies are trading in the same clothes they went to bed in last night!

    The Big Dog, euro, did attempt to move stronger into the 1.50 level, but that move was thwarted by a poor reading of German Investor Confidence this morning. German Investor Confidence as measured by the think tank ZEW, reported that their index had fallen to 51.1 this month VS the 56 in October. Most of those Germans surveyed said that they expect the economic recovery to be slow once the Gov't removes the stimulus in the economy. So... Previous euphoria is being replaced by realism... But that's OK... Better to have a reality grip on things than to go around thinking that everything is seashells and balloons......
  • More Baby Steps For A German Economic Recovery...

    In This Issue..

    * German unemployment falls!
    * RBA disappoints the markets...
    * China to buy Canadian company...
    * ISM to print positive?

    Good day... And a Terrific Tuesday to you! And Welcome to September! Well... Here's a thought to get our engines started this morning... Bill Bonner of the Daily Reckoning ( www.dailyreckoning.com )had this to add to my ranting about our National Debt going to over $20 Trillion in the next 10 years, due to deficit spending...

    'The Obama administration, for example, expects to run $9 trillion in deficits over the next 10 years - and that number is based on a recovery! Imagine what will happen if the economy doesn't recover?'

    ...