Brainstorming Monday

1 The market goes insane as JGBs hit 7 year lows with a rising yen both aspects are completetly perverse but still see where the Nikkei is - the same will happen eventually to the SPX but rather after NOV as the Treasury department wants to screw some people with GM stocks whose IPO is about to come soon to your theatre of deception and government betrayal. Some other M&A activity is also in the pipe and moron CEOs only buy at highs if you have a hard time understanding why please try to get into a Harvard MBA program or similar ivy legeau school since those concepts only get taught at those places since you need to be out of any common sense to participate or be a member of any greek alphabetic fraud brotherhood. Same is true for any money manager who buys 10 year JGBs at 0.95% yield.

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Here We Go Again: European Peripheral Spreads Explode As Safe Havens Collapse

Submitted by Tyler Durden on 08/16/2010 06:47 -0500

It's starting again. Japan 10 year JGBs just dropped to fresh 7 year lows of 0.95%, as UST 10 years are down at 16 month lows of 2.65% and German 30 Year yields are down to record lows of 3.09%. Maybe the Fed should just let deflation run its course to get ever closer to the target UST curve which we noted before. And while Japan is ravaged by a fresh bout of deflation, Europe is starting to crumble once again now that (lack of) vacations are generally over: the Greek/Bund spread has just hit the widest level since May 10, at 811 bps, while the Irish/German spread is at its widest ever of 303 bps, a move of 10 bps on the day. European weakness is resuming now that CPI came in at expectations (as opposed to beating them as has been the tradition for the past month) at 1.7%. The export-driven golden age, as we noted, is over. Elsewhere, the Telegraph posted rumors that the BoE is preparing to join the Fed and is about to commence a fresh round of QE as a new wave of global monetary easing is about to hit.

2. Good old Rothschilds established a few good old traditions for market manipulation - nothing to worry about as they owned the dominant news vendor Reuters back then and something tells me same could be true for Bloomberg but these days not so public. Stock markets have been manipulated ever since they existed since if you have the money power why not screw around with the little stupid mainstreet investors and if you can get the government to regulate that even for you so you can srew them officially with funds and other investment tools well thats even better. The problem is sometimes the competition as besides the Jewish team where is also competition from other big players as the Catholic church was also a big player at some times but never was able to rise to the power and sophistication and the government also wants a share from the pie as they can regulate against them - its even a bit more complicated but basically that descibes the power players to some degree besides some natural forces as the reatil investor has a collective say but can not use it really collectively up to now.

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Guest Post: Gold Market Is Not “Fixed”, It’s Rigged

Submitted by Tyler Durden on 08/15/2010 16:10 -0500

In 1919 the major London gold dealers decided to get together in the offices of N.M. Rothschild to “fix” the price of gold each day. While this was notionally to find the clearing price at which all buying interest and all selling interest balanced the possibility for market manipulation and self-dealing is inherently systemic in such a cozy arrangement. This quaint anti-competitive procedure continues to this day. In no other market in the world do the major players get together each day and decide on a price. Imagine if Intel, AMD and Samsung were to meet each day to “fix” the price of microchips, or if the major oil companies were to meet each day to “fix” the price of crude oil; wouldn’t there be a public outcry and a flurry of antitrust violation lawsuits? The “fix’ is not open to the public, there are no published transcripts of each fixing, and there is no way to know what the representatives of the bullion banks discuss between each other. The current London Gold Fix is conducted by the representatives of five bullion banks, namely HSBC, Deutsche Bank, Scotia Mocatta, Societe Generale, and Barclays. The “fix” is no longer conducted in an actual meeting but by conference call.