The Credit Crisis Financial Stocks Short Journal

Macroman raises the possibility of some major libor blowup
http://macro-man.blogspot.com/2010/05/bread-and-butter.html

As far as his comments
"Yesterday's ISM was pretty impressive. True, a lot of the strength was "in the price" via the consensus forecast, but even that was exceeded. New orders moved back towards their highs of the cycle, while the headline is now approaching the highs of the last few cycles. Indeed, the only reading of the last 20 years to register higher than yesterday's 60.4 was observed in May 2004: ironically enough, the month before the Fed started hiking rates last time."

Thats the wrong indicator to be looking at on this cycle. The correct one yesterday was the Fed Senior Survey, showing little or no change in credit standards. This aint a manufacturing recession
 
Quote from Daal:

Macroman raises the possibility of some major libor blowup
http://macro-man.blogspot.com/2010/05/bread-and-butter.html
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You've taken that out of context. He thinks LIBOR is going up because rates need to go higher because of a stonger economy, not because of some blowout in the spread. I completely agree. The risk to owning GE calls (8 months to 1.5 years out) is that the Fed jacks rates, not that the LIBOR/OIS spread blows out on the day I decide to exercise.
 
Quote from ralph00:

You've taken that out of context. He thinks LIBOR is going up because rates need to go higher because of a stonger economy, not because of some blowout in the spread. I completely agree. The risk to owning GE calls (8 months to 1.5 years out) is that the Fed jacks rates, not that the LIBOR/OIS spread blows out on the day I decide to exercise.
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Another day another decline in the EUR and Jun 2010 Eurodollars
 
I'm very pleased not to be long the front month GE contract.

FWIW, the June10s are flat on my screen, all other months are up sharply.:cool:
 
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