Morning Audibles 8.16.10

Hello Capitalists...


Overnight Futures were down considerably at one point as Japan's GDP came in on the, shall we say, "lite" side (.04 vs 2.3 expected)... So "carry trade" unwinds may be the flavor of the day...


Naturally, here in the US, we don't worry about such things because we have a bunch of "_ _ _ _ bunnies" (adjective withheld) in all the important positions... And they're here to HELP, remember?

Why, just see for yourself... We've got CNBC at 1:16, and we've got Bernocchio vs. the bond market, at 1:33)... We've got everything we'd ever need... Hell, some even think it's a rather GOOD thing...

Obama "Wins" Low Yields as Markets Shrink, Aiding Deficit

http://www.bloomberg.com/news/2010-08-15/obama-america-wins-lowest-yields-as-markets-shrink-aiding-record-deficits.html

Excerpt:
"Less competition for bondholders’ funds may make it easier for Obama to finance future stimulus needed to boost the economy after the Federal Reserve said Aug. 10 that the pace of the “recovery is likely to be more modest in the near term than had been anticipated.”


“It would seem there’s room for the federal government to raise more debt,” said John Lonski, the chief economist at Moody’s Capital Markets Group in New York."


Hear that people? Your POTUS is out there "winning" you low yields (and that's just in his spare time between vacations & rounds of golf)...


It doesn't get much more entertaining than that... But if you STILL haven't gotten your fill of entertainment, just head off to the local movie house... This weekends BOX OFFICE selections featured a PREVIEW of the November elections...

“The Expendables” topped “Eat Pray Love” for first place at U.S. and Canadian theaters this weekend, earning $35 million for Lions Gate Entertainment Corp."

http://www.bloomberg.com/news/2010-08-16/-expendables-tops-eat-pray-love-at-weekend-box-office-with-35-million.html

And remember, it's OPEX week... So get yourself ready for that "surprise FED announcement" come Thursday afternoon at 3:55PM...