Money is coming out of Risk Equity/Commodity and going back into US Dollar/Treasury Securities. This is exactly the trade that was put in when things went bad 4th QTR 2008 and 1st QTR 2009.
Why wouldn't it not? The simple definition of insanity is what the Obama Administration has been proclaiming since they took office. Lets do the same stupid idiotic things we did before we got in this mess and look for different results.
It looks like TARP, Stimulus, TLGP, TALF, PPIP, Stress Tests, and the Trillions used to prop up the system lasted exactly 4 months. They averted disaster for 4 months only.
Interesting that commodities are taking it on the chin only after CFTC (Commodities Trade Reg) has started talks about rescinding Goldman Sachs and Morgan Stanley's trade limit exemptions. GS and MS have enjoyed unlimited risk exposure and trade limit size in all commodities, basically ensuring that they can push prices in what ever direction they want them to go.
Hopefully the party is over.
CORN
WHEAT
SOYBEANS
CRUDE OIL
GOLD
BONDS
10 Year and 30 Year Bonds have firmed up and caught buyers.
Those are some ugly Commodity charts, just looks like they went up on air, and the balloon just popped.
ReplyDeleteThose are some ugly Commodity charts, just looks like they went up on air, and the balloon just popped.
ReplyDelete