$ 2 Yr Breakeven level versus $ 2-10s

Spanish Risk Bonds & Equities; ECB buying peripherals

As ECB starts buying €uro peripherals again, we think this could be a
interesting chart. It shows 10yr Spanish Govies versus Bunds and a Ratio of
IBEX versus DAX.

Fiat World Mathematical Model...from MISH'S Global Economic Trend Analysis

http://globaleconomicanalysis.blogspot.com/2009/02/fiat-world-mathematical-model.html

Got Gold?

Someone just bought $1.34b notional of Gold. 10k contracts.

AUD versus SPX Update

 

Let's wait to see which market turns first?

A new analysis by Jan Hatzius

Turns out, even we were optimistic. A new analysis by Jan Hatzius, which performs a top down look at how much monetary stimulus is needed to fill the estimated 300 bps hole between the -7% Taylor Implied Funds Rate (of which, Hatzius believes, various other Federal interventions have already filled roughly 400 bps of differential) and the existing 0.2% FF rate. Using some back of the envelope math, the Goldman strategist concludes that every $1 trillion in new LSAP (large scale asset purchases) is the equivalent of a 75 bps rate cut (much less than comparable estimates by Dudley, 100-150bps, and Rudebusch, 130bps).

In other words: the Fed will need to print $4 trillion in new money to close the Taylor gap. And here we were thinking the economy is in shambles. Incidentally, $4 trillion in crisp new dollar bills (stored in bank excess reserve vaults) will create just a tad of buying interest in commodities such as gold and oil...

Liquidity Trap Bennie!

Very relevant Note from David Rosenberg last night:

"Zero interest rates and quantitative easing pushes the cost of debt to

historic lows. And investor portfolio preferences shifted post crisis towards

debt and away from equities. The result: the largest gap between earnings

yields and (after tax) debt yields. That means investors overvalue debt and

undervalue equity. And the coming corporate finance response means issuers have

historic incentive to issue debt and buy back equity. The gap in valuation

relative to history suggests a potential 50% increase in debt funded buyback

activity over the next year"

CFTC SILVER Fraudulent Efforts Made on SLV, Chilton says

Industrial Production vs M1 / CPI Update 10/2010

That is why the FED has to print Money out of nothing!
That Money they use to generate Output on cost of Inflation! 

GOLD CFTC Commercial Shorts on high levels