It shouldn't be a huge shock that the market, along with our dog Tater, is taking a bit of a breather today, well so far anyway.By now you know that ten year yields panicked up to 5.25% which seems like a short term high, but we'll have to see.
Ginormous moves like we have had this week happen occasionally but it is rare that they stick without a little backing and filling.
A long time reader just left a comment saying the Bill Gross was just on the network (I had CNBC Europe on at the time) to qualify his statement a bit. According to the comment the call from Gross was more about the yield curve normalizing. The reader asked for my take.
I have been saying this for many months. To be clear this was nothing clever on my part. Every so often the yield curve inverts, on average about nine months, and then it normalizes. It seems that most of the discussion about normalization asks will the front end go down or will the long end go up. I have felt that both would happen. The long end will go up to something within range or normal and the next move by the Fed will be to cut. I don't think I have tried to guess when the cut will happen but if I have I was probably too early.
On a more important note my hunch for the closeout of the Sopranos is that they whack his family and Tony is left to think about it for the rest of his life.
8 comments:
The family whack would be very unusual. Given that Phil has been bitching about the pygmy clan in NJ, a bastardized segment of the LCN in his eyes, break precedent by targeting the family would be truly bizarre. Chase has hewed to reality with his mafia depiction. Outside of Fat Pete Chiodo's sister I can't think of a real incident where family uninvolved in the business were targeted for death. A poorly placed car bomb might resolve that, however.
As for Gross, this gentleman's take is dead on in my opinion: http://accruedint.blogspot.com/2007/06/lies-damn-lies-and-pimco-newsletters.html
Wasn't there a radio soap opera that ended with the entire cast driven off a cliff in a bus?
I think the reason for Bill Gross's about turn on bonds is pure and simple - Greenspan.
Gross, who was considered an individualistic thinker, now has become just a conduit for Greenspan's ideas.
If I were Bernanke, I would want, in true Soprano fashion, just to have him offed.
Fiona
My call is in to Icepick Guido.
did you go see the red sox fri night? sounded like more boston fans than arizona fans in the ball park
that's an odd question...I was there. My brother and I went, what a great time.
By my count we had three "let's go Red Sox" cheers, one "let's go Manny" and one "let's go Papi."
My brother and I joked that there were more Sox fans because every New England transplant in the mountain timezone drove in for this one.
You were there too?
I suspect that Tony will go to the FEDs and cut a deal. The last pitcure we'll see of him is behind bars.
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