10-15-2013 06:40 AM
Government shutdown has us very quiet again this morning. With the holiday yesterday in most other markets saw our volumes very thin.
Spent the weekend in NW Illinois and the weather could not have been better. Beautiful autumn colors. Well worth the trip. Stories out of the fields were better than expected as well. We will have to wait to see that the government thinks.
Stocks are up just a tad this morning after last weeks rise. The 10 year yield has risen to 2.71% and gold has fallen to $1260.26 which is down $12.13. Oil is down as well to $101.67 down .74 cents.
We again will be watching the talking heads debate a default. It is not going to happen. If our legislators think they have a lot to worry about with Obamacare and the debt ceiling if they let the government default they will have a TON more to worry about and Obamacare and the debt debate will be the least of their problems. That is why they will not let it happen.
Getting down to crunch time and the markets will be dangerous. As we get closer and closer to the government running out of money I say 'Hey, didn't we run out of money $17 trillion dollars ago?'
10-15-2013 08:15 AM
10-15-2013 08:37 AM
Anything to fit the narrative.
They're selling very short dated bills, still a remarkable show of confidence that the market believes that even if there is a default it only affects the stuff inside 30 days maturity.
As Adam Smith famously said, "there is a lot of ruin in a nation."