thursday thread, page-6

After reading the XJO threads for awhile, it's time for fresh blood to creep out of the shadows.

A few developments this last week that some may not be aware of.
The bear is heading out of the forest?


The US Treasury admitted making a $250 BILLION mistake for 6 MONTHS on their TIC Data (Foreign Holders of US Bonds). Peanuts (!!!???). This revealed $250 Billion in Bond ownership that was previously attributed to 'the UK' was suddenly moved over to China's column.
And Timmy Geithner still has his job.

But there is more:
they are actually committing the exact same error now in the current Bond holders data series. Why ?? Why hide China's data inside the UK data? Why? Oh, probably not important --- these are just the national accounts! not worth the paper they are written on.


Bill Gross of PIMCO has reduced his exposure to US Government Bonds to ZERO.

He had over $140 BILLION invested in Govt Bonds in middle 2010. Pimco is the biggest private Bond fund in the world. This was revealed on Zerohedge today here http://www.zerohedge.com/article/exclusive-bill-gross-dumps-all-treasuries-brings-total-government-related-holdings-zero-flee

He is moving principally to the safety of Cash and Corporate Bonds. Note, he has been known to make big mistakes in the past e.g. his investments in German Bonds.

Read his latest, honest appraisal here http://www.pimco.com/Pages/Two-Bits-Four-Bits-Six-Bits-a-Dollar.aspx


The Australian Stock market seems to have decided that the Dow Jones Index is now a standing joke. It ignored a 130 point rise on Tuesday in the Dow and promptly went DOWN 40 points. This is an event of extreme rarity. I was very surprised. There were no big currency movements to explain it either. And it's down hard again today with no currency moves of note to explain it. It is turning into an ugly week. The only thing I can find to explain the drop in the All Ords is a falling DBB over the last few days (the ETF for metals in the US). Does anyone else know why this is happening? Maybe because Libya's oil supply is now seriously threatened?



Merv King, the head of the Bank of England, has been making lots of speeches and interviews warning the people of the UK that they are headed into another crisis.


http://www.telegraph.co.uk/finance/economics/8362951/Britain-at-risk-of-another-financial-crisis-Bank-of-England-chief-warns.html


http://www.telegraph.co.uk/finance/economics/8290384/Mervyn-King-The-other-Kings-speech.html


http://www.telegraph.co.uk/finance/economics/8355475/Anger-at-the-banks-is-justified-Mervyn-King-says.html