“President Barack Obama is priming an Italian-style debt crisis in the U.S by encouraging massive deficits with no regard for their economic consequences, says Harvard economic historian Niall Ferguson.

“What has been characteristic of this administration is that it has never attempted to arrive at anything resembling a credible plan to restore the finances of this country to balance,” Ferguson said at a question-and-answer session after delivering the Manhattan Institute’s Wriston Lecture.

“The last time the Congressional Budget Office tried to project fiscal policy on the basis of current policy, what it showed was that the United States would never again this century run a balanced budget, that it would run a deficit every year until the projections peter out in the 2o80s.”

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Can’t wait

Given all the turmoil in Europe and the publicity that comes with it,  we have now arrived at a point in time where serious discussion is taking place on the potential breakup of the EU.

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Down to 6.44% now.

No matter your age we can all use a little extra income. Perhaps you may find some in the market.

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“Policymakers have taken the wrong approach in dealing with the global economy’s numerous problems, shuffling debt around while avoiding making difficult decisions, Pimco’s Mohamed El-Erian said….”

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This has quietly gone unnoticed until now. When yields spike it is hard for the markets to ignore it.

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Very interesting commentary on gold and currencies in relation to the sovereign debt crisis.

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Clients of MF Global still do not have access to their money and thanks to sloppy record keeping the missing money remains a mystery.

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U.S. banks have grabbed 10% of loan underwriting this year vs 8% last year.

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Yields have climbed significantly as of late and as a result the banks in Italy have gone on a borrowing spree. From September till now Italian banks have gone from a rate of 41 billion euros to 111 billion euros…

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Not so good news given all the budget cuts and money needed to be raised.

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“As a result of a technical error, a message was automatically disseminated today to some subscribers of S&P’s Global Credit Portal suggesting that France’s credit rating had been changed. This is not the case: the ratings of France remain AAA with a stable outlook, and this incident is not related to any ratings surveillance activity. We are investigating the cause of the error.”

+6%+ for the day.

3.5% is the level to watch.

Business as usual

Really ?

France 10 yr yields are +4.4% to 3.34%. The key level to watch is 3.5%

Now off more than 6% to 6.78%

Squabbling between Germany and France over haircuts are acting as a speed bump to producing a bazooka.

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10 yr yields down 4.4% to 6.93%.