Trading Now

Trading Now

Wednesday, August 5, 2009

Now I Know Why the Banks are Holding Up the Stock Market

*who does Uncle Sam need to buy their DEBT? Uncle Ho Chi Minh(or one hung low) that's who. But Chinese already said if you don't give me Yield you can forget it. What's one way of creating yield and giving the Chinese what they want? Run the stock market up by having GS buy the bank stocks and have the anaylsts give bank stocks an upgrade. Everyone running to catch the rally (gotta get in gotta get in) means no one running to treasuries means higher yield for the Chinese and let's not forget the Arabs (who hate the chinese by the way, that's why we never have to worry about a war with China). So who is the sucker? YOU! Let the rally begin, again. We will be in this at least until after below's auction. Helicopter Ben knows that he has to drive these banks up as much as possible so the fall will take longer. But the fall will come. It won't come when I want it to, but it will come.

U.S. Treasury to Sell $75 Billion in Long-Term Debt
Aug. 5 (Bloomberg) -- The U.S. Treasury plans to sell a record $75 billion in its quarterly auctions of debt next week and indicated plans to expand inflation-indexed securities next year as it finances unprecedented budget deficits.

The Treasury plans to auction $37 billion in three-year notes on Aug. 11, $23 billion in 10-year notes Aug. 12 and $15 billion in 30-year bonds Aug. 13. The amounts matched the median forecast of analysts surveyed by Bloomberg News.

The Treasury’s current borrowing calendar is “sufficient” to meet the government’s needs and auction sizes are likely to rise in a “gradual manner” over the medium term, a Treasury statement in Washington said today. The Treasury signaled that issuance of Treasury Inflation-Protected Securities will rise in fiscal year 2010, and said it would consider replacing the 20- year TIPS with a 30-year security.

“Near-term financing needs will rise as a result of weakness in the economy,” Karthik Ramanathan, the department’s debt-management director, told the Treasury Borrowing Advisory Committee yesterday, according to minutes of the meeting. The Treasury is “well-poised to meet the balance of its financing requirements not only for the remainder of the year but also fiscal 2010.”

The Treasury also said it expects to run up against the debt ceiling, which currently stands at $12.1 trillion, in the last three months of the 2009 calendar year. The Treasury said it would keep Congress and the markets apprised of developments, “given the uncertainty surrounding potential borrowing needs.”

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