Financial topics

[vincecate]

My guess is that we have passed the low in bond interest rates. I think the trend from now on will be toward higher interest rates and lower bond prices. At some point we will say "the bond bubble is popping".

http://www.fxstreet.com/rates-charts/bond-yield/

[Higgenbotham]

http://blog.kimblechartingsolutions.com ... uly241.jpg

[aedens]

http://wallstreetpit.com/95212-marc-fab ... arking-qe3
As we all accurately noted here Yea I have been trying to whistle past the second derivative

http://www.youtube.com/watch?v=yFZzJKWJ ... re=related

He planted his corn in the month of June
By July it was up to his eyes
Come September came a big frost
And all the young man's corn was lost

[Higgenbotham]

Risks of California muni bankruptcies rising - Moody's

Aug 17 (Reuters) - California bankruptcies will likely rise, Moody's Investors Service said on Friday, saying that it is considering credit rating downgrades as financial stress on cities and other localities rise, encouraging lawmakers to use bankruptcy as a tool to win bondholder concessions.

http://www.reuters.com/article/2012/08/ ... M020120817

This is under the radar now, but could be the "new subprime" and decay of the "US periphery" (as opposed to the Soviet periphery of Eastern Europe, or the European periphery of the PIIGS). The way I'm seeing this in the big picture is the edges of the Soviet Union decayed and broke away; that is now occurring in Europe in a similar manner; that will also occur in some way in the US. In the US, it seems likely that a major earthquake on the West Coast could speed that process along.

The quote from the above article also shows how corrupt the thinking is in America. Bankruptcy is not a "tool"; it is a legal process that occurs when an entity is bankrupt.

[aedens]

We noted money is hidden in California and is being shaken and not stirred out. There is nothing better than watching Democrats looking at each other thinking who is for funding dinner of corrupt marxists. No one checks the controller's figures, so the difference wasn't caught.

http://m.mercurynews.com/sjm/db_259596/ ... ue#display
They are trying to manage expectations upstream also and keep some funds alive is my thought map as we observe the beast lashing out. I think we already know the end result here. We noted the three ring implosion rates a few pages back.

Other side of the coin of what you note as we know. This addresses RC query also to repo funding. Back to what we observe of the seen and unseen.
http://sibileau.com/martin/2012/07/23/t ... reasoning/
All asset price bubbles were the deliberate (not coincidental) result of some sort of signal suppression, price suppression. All of them. But to begin with, the worst price suppression we have today is in the banking system, where loans, which are multiple times the actual value of deposits, are not marked to market, but carried on an accrual basis. The point is most of them should be relieved of duty and per capita unleashed as akin to a double barrel shot gun
to these liberal idiots who destoyed California.

Meanwhile the burn rate we mentioned is unstoppable. http://freebeacon.com/gone-with-the-wind/print/
As I noted the Korean FTA is just another nail as they simply kill the rest. They want this Country destoyed
is an understatement.

[Higgenbotham]

"Bearishly for the stock market, the super-bulls have finally returned to the market after an absence of many years." This is an excellent point. This analyst also has an outstanding track record.

"Perhaps bearish as well, Mark Leibovit, who has a good track record, said Friday on the Nightly Business Report that he is looking for a multi-month top in August." True, Leibovit has also carried the ten year top timer ranking from Timer Digest for some years.

All the best analysts I know of are lined up on the short side: Cadbury, Leibovit, Hadik, Slezak, and Nenner.

http://pr.b5z.net/i/u/10144154/f/CADBUR ... -_Copy.pdf

[aedens]

So a hot money flush, or to say our melt up and the consumer credit is tapped out.

[Higgenbotham]

All asset price bubbles were the deliberate (not coincidental) result of some sort of signal suppression, price suppression.

Another note we would reiterate is that when the feedback signals of a natural process such as population growth are destroyed, then overshoot and collapse is the result, which is what we are looking at right here in the stock market, as theorized previously.

Our weekend posts indicate that many understand this in some way or another. I thought Kimball's chart was a good representation. My thought is a breakout over the tip of the wedge will signal the onset of hyperinflation, and a breakdown under the lower blue line will signal hyperdeflation. It seem likely that the tip of the wedge may be the maximum time allowable in theory to kick the can any further before either hyperinflation or hyperdeflation will have to take place. I'm wondering if the next flash crash could take the market under the lower blue line in a short amount of time, and the market jumps under many of the stops, so they don't get hit.

[aedens]

The burn rate will overwelm them. Given the low noise signal it made itself prevalent in and of its nature
to its wave formation as the chart conveyed. It is not a natural signal but nonetheless will run its nature of design.
Very good conveyance H. The theme to compress under the umbrella of inflation targeting was to supress actors.
As it was conveyed the truth has run its three simple steps to the construct it was under. We covered the status
of no man that included the clear reference of surety. Discipline over conviction has provided its course.

http://www.youtube.com/watch?v=zSif77IVQdY Good Luck America

[Higgenbotham]

Market reaction to the debt crisis isn’t justified by the “objective figures,” and public finances in the U.S. are in worse shape than the euro region’s, Schaeuble said today.

http://www.bloomberg.com/news/2012-08-1 ... ce-1-.html

The situation may end up worse here than in the former Soviet Union or Europe for several reasons:
1. The collapse of the Soviet Union and Europe have masked how bad things are in the US, so when the US begins to collapse its fiscal situation will be relatively worse.
2. Americans are too arrogant and brainwashed to consider breaking the country up into manageable self-governing pieces.
3. There won't be any other area of the world that the US can rely on for aid when it collapses; in fact, China will probably cut the US off.