The Treasury announced Thursday a record $104
billion worth of bond auctions for next week, part of its herculean
efforts to finance a rescue of the world's largest economy.
The
sales will exceed the previous record of $101 billion set in auctions
that took place in the last week of April and consist of two-year,
five-year and seven-year securities. That record was matched by another
$101 billion week in May.
Though
next week's total was broadly in line with expectations, worries about
supply have weighed on the U.S. government bond market, which will see
a mammoth $2 trillion worth of new debt issued this year.
"Maybe
the Treasury market reacted a little negatively and it will continue to
be like this," said Suvrat Prakash, U.S. interest rate strategist with
BNP Paribas in New York. "Supply
[California's] A2 rating is just five notches above speculative status and Moody's raised the potential for the rating to tumble toward "junk" status if lawmakers fail to quickly produce a budget for Governor Arnold Schwarzenegger to sign.
Excluding public sector borrowing (by the Treasury, government agencies, states, and municipalities), private sector credit was reduced at a mindboggling pace of $1,851.2 billion per year!
In a false bottom of one of their suitcases, Italian customs officers
and ministry of finance police discovered a staggering $134bn in US Treasury bills.
Italian and US secret services working together concluded the
bills were most probably counterfeit,
the latest handiwork of the Mafia.
Chief executives of some banks that received federal money, including
Bank of America Corp, Morgan Stanley and Regions Financial Corp, used
company jets for their personal use.
Many occasions when banks receiving federal money
flew their planes to destinations near resorts or executives' vacation
homes in Europe, Mexico, the Caribbean, south Florida and Aspen,
Michigan again reported the highest jobless rate, 14.1 percent in May. The states with the next highest rates were Oregon, 12.4 percent; Rhode Island and South Carolina, 12.1 percent each; California, 11.5 percent; Nevada, 11.3 percent...
Given that the proportion of recipients who used up their jobless benefits topped a monstrous 49 percent, the continuing claims number going forward will be essentially meaningless.
What would happen if the O'man came on the news and stated that each state in the United States would be entered into a lottery for government grants for new business. Each state would receive one billion dollars, each grant would be one
Credit ratings agency Standard & Poor's said it is
unlikely to lower its rating on the U.S. government in the near-term
despite noting a "significant" weakening in public finances.
S&P said in a report it will retain its top triple A rating for the
U.S.'s long term debt and added that the outlook is stable. Last month,
rival credit ratings agency Moody's Investors Service said the U.S.
government's "AAA" rating is stable despite the country's swelling debt.
NYSE said it
had signed a deal with Depository Trust & Clearing Corp
to form a joint venture for clearing U.S. fixed income
derivatives.
The new clearing house, New York Portfolio Clearing, will
combine the NYSE Euronext's U.S. futures exchange and DTCC's
Fixed Income Clearing Corp to offer risk management, clearing
and settlement efficiencies for U.S. fixed income securities and
derivatives.
Here’s yet another huge financial story that has been virtually
blacked out by the US financial media. Although on the surface, this
story appears to be a non-event, if we consider some of the released
facts about this case, you will understand why I consider it to be a
huge story. On June 8th, the Asia News reported the following story:
“Italy’s
financial police (Guardia italiana di Finanza) has seized US bonds
worth US 134.5 billion from two Japanese nationals at Chiasso (40 km
from Milan) on the border between Italy and Switzerland. They include
249 US Federal Reserve bonds worth US$ 500 million each, plus ten
Kennedy bonds and other US government securities worth a billion
dollars each. Italian authorities have not yet determined whether they
are real or fake, but if they are real the attempt to take them into
Switzerland would be the largest financial smuggling operation in
history; if they are fake, the matter would be even more mind-boggling
becaus
"It's really not going to make any difference because the Greatest Depression is underway. They know that this is not going to be solved by printing more money, phantom money out of thin air." Gerald Celente
Arizona's collections were down a whopping 54.9% depending 25.3% on Personal Income Taxes. South Carolina, Michigan, Vermont, Rhode Island, New Jersey, Idaho, and Ohio are also in deep trouble.
"How do you want people to spend more if they don't have a job, borrow more, and tell the banks to lend more but have less leverage. Try to explain to me how this administration can get away with this nonsense." Nassim Taleb
State income-tax revenue fell 26% in the first four months of 2009 compared to the same period last year, according to a survey of states by the nonprofit Nelson A. Rockefeller Institute of Government.
The actions reflect our belief that operating conditions for the industry will become less favorable than they were in the past, characterized by greater volatility in financial markets during credit cycles...
Housing expert and MIT Professor Robert Shiller was equally pessimistic, saying, with regards to the four-year housing downturn: "This thing is not over yet."
The rate of capacity utilization for total industry declined further in May to 68.3 percent, a level 12.6 percentage points below its average for 1972-2008.
Foreign demand for long-term U.S. financial assets fell in April as
both China and Japan trimmed their holdings of Treasury securities. The net purchases of stocks, notes
and bonds obtained by foreigners fell to $11.2 billion in April, from
$55.4 billion in March.
Today's the deadline for Gov. Arnold Schwarzenegger and the Legislature to close a $24.3 billion deficit so the state controller can get emergency loans to help California avoid running out of cash next month.
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The clock is ticking on many things at once: Leveraged loans, boomer retirements and subsequent downsizing, Pay Option ARMs recasts, Alt-A recasts, and last but certainly not least, a jobless recovery that ensures massive credit card defaults
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Maguire Properties Inc ... sold a newly developed office building in Irvine, Calif., for about $160 million, a price representing an estimated 40% discount to its construction cost.
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