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Bad ticks from the exchange. It happens sometimes.

For a producer to be able to pass on higher prices to consumers, they have to be selling a product with inelastic demand. If the demand is highly elastic, any rise in price would offset profits by a larger drop in demand. This dillema for producers has been offset by the market becoming...

I'm hoping it passes, I have some large short positions.

The central bank market is not one of investment, it's one of fund flows. Their actions are to create a liquid interbank market. Therefore, they do not look at buying treasuries in the same way a hedge fund does. Secondly, they buy US treasuries, and the dollar, to keep the Euro from...

Other. It's because the G20 is engaged in a coordinated liquidity program. The excess liquidity that is not being used has to be parked somewhere. Therefore, many foreign central banks, and commercial banks are parking their excess reserves in US treasuries. Think about the 600 billion in...

If you really want to live your life as a deadbeat go ahead. But if you have a huge credit card balance, you borrowed it, you should feel obligated to pay it. I do agree if you have huge fees, maybe you should negotiate those lower. But the fact that you can get money on demand from your credit...

It's interesting that he's a Republican from guess where? California! Just as they are trying to figure out how to get bailed out of the financial mess. The fed has been explicit in saying they will not guarantee the debt of Cali. Seems to be some kind of extortion.

This shows that some of our representatives really hate the American way of life, and that they are pushing to end our freedoms. This piece of dogshit Issa is a disgrace. This whole story is a disgrace. The fed needs to be an independent organization. You who want the fed as a political...

Why would a bank want to extend more credit to small businesses during a consumer meltdown? That's just bad banking in my opinion. Once the worst of this is over, you will see credit slowly return. If these small businesses are financing their operations with 13% plus interest rates, they need...

Sell signal in my opinion.

The goldbugs have been fantasizing about a return the gold standard for decades. This is just a hybrid minimart that has added a gold/silver exchange to their business. Nothing revolutionary, or futuristic about this setup. The threat of a dollar collapse has been abated. The proof of this is...

I think the threat of a liquidity trap was nullified with quantitative easing. The equity markets have definitely changed from a deflation bias in March, to an inflationary bias in May/June. This change coinciding with the last G20 meeting where the central banks agreed to pump the system with...

The story has become much more clear this week. The dollar standard is going to be defended by the G8. They are now united against China's calls. Russia is now falling in line since the G8 meeting this week. Japan's minister said their trust in US treasuries is "unshakable"...

The problem with Tic data is that it comes in a 3 month lag. The key month to watch for when the data comes out is May. That's when treasuries started falling off a cliff.

China has been becoming more aggressive in the past few months on the world stage. To me, this is exposing their weakness. They have too many dollars and treasuries, which is their fault due to their dollar peg, and are now stuck with worthless savings. They are trying to find places to swap...

It will never happen.

Exactly. Plus, commodity based currencies are just as prone to boom and bust cycles as fiat currency systems. You still have credit in a gold standard. The bigger problem with a gold standard is the inability to increase the money supply in the bust phase of a credit cycle, which really hurts...

I tried to answer your question with my last post. I do agree that the fed lost control of the dollar system through the crisis. But I believe that they are now back in control due to the collapse of credit markets. The fed is the only source of financing to the credit markets in dollars right...

Thank you, and yes this is all authored by me. I got inspired this weekend and wanted to post some of my thoughts to others here.

The Federal Reserve policy makers saw the end of the dollar coming quickly. They had one last option, I call the nuclear option. They started talking about moral hazard and too big to fail. They were hinting to the market that they were going to let a big one fall. By Septemeber of 2008, the...