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