Inside of The PPT, I do crazy things. I build indexes and watch them closely, not so much different than an old man fireside with his kids. I built a 4g/smartphone index way before any of you asshats knew what 4g was, including Cramer. Well, one of my favorite index’s is The Risk Appetite Index, which consists of a variety of closed end muni, corporate and sovereign bond funds. Essentially, it should give users a heads up to shady shit, not so much different than the CDS market, only less sophisticated. You get what you pay for.
Here is a look at the RAI, during the “Flash Crash” period to date.
Now, let’s zoom into the recent activity.
(3 month)
(1 Month)
Why the sell off?
Answer: Since QE2 was announced, bonds have been getting hammered, sending yields ripping. This is of course the opposite of what the Fed is trying to accomplish. Remember, HIGHER YIELDS IS THE DEATH KNELL FOR AMERICA. TLT is now sitting with a 96 handle, after hitting $108, not too long ago. Over the past few days, as represented by PCK, California munis have been getting shredded. As a point in fact, munis across the board have been getting hammered, but none as bad as the Cali variety. As you should understand, sharp downside reversals do not bode well for sentiment and could lead to a panic, if not properly managed. Having said that, CSCO reported bad earnings today, blaming “developed governments and states” for the shortfall. Basically, European austerity is kicking in and our states are fucking broke.
However, things are peachy elsewhere. CSCO is flaunting flamboyantly gay growth in all BRIC nations. As you can see by tonight’s Asian session, they couldn’t care less about our “issues.” I look forward to banking more egregious coin tomorrow, as the pigs in Cali die a painful death. They are all a bunch of lazy, drug addled, spoiled leaches anyhow.
PCK (PIMCO California Bond Fund)
UPDATE: Details regarding the coming 12631 launch.
[youtube:http://www.youtube.com/watch?v=tVCFjo4lYro 616 500] If you enjoy the content at iBankCoin, please follow us on Twitter
We’re not all spoiled…
(Nice work on that)
Ha! First!
Damn
See how gay it looks now?
I really can’t defend myself here.
time to bail out cali!
It was a sad day for me when I first understood how much of a banana republic this country is, with all the backdoor bailouts, spending of money which we don’t have or probably ever will, making promises with no intentions of keeping, screwing our children, etc.. So, it wouldn’t suprise me if we actually bailed out CA, IL, and/or NY sometime over the next year or two, hell it’s funny money anyways.
Time to move out of the country.
Costa Rica!
OZ would be better
http://www.youtube.com/watch?v=unl0qo4f8Xo&feature=email
I’ve lived in Detroit so long, it feels like I am in another country.
I’ll stay and be a slum lord.
Sadly, Detroit will not come back in the next 50 or 100yrs. If I were there today. I’d move tomorrow. No matter the cost.
We’re already bailing out Cali,since they have to take govt money to survive.
Ha! Somewhere past two or three but higher than Univ of FL in BCS standings. Nice entry tonight with illuminating charts.
Hey, I live in California. I resemble that remark.
It’s “I represent that remark”, Dummy!
Get to the choppa!!
You’re one ugly Motherfucker!
Bought 10,000 FTK today!
Man I have Bullish Balls!
I can walk and talk and fly!
Do anything I try!
Well played.
The fed is mainly buying 2s-10s, not the long end much. PCK is mainly long end, probably a big reason the yield is blowing out.
PCK also trades at a 13-14% premium to NAV, maybe some of that premium is also getting sucked out.
So much money has been fed into bonds and bond funds, that the pig is ready for the slaughter.
Nice and juicy.
I’m getting my share.
TBT
Someone sent me a link to Beck talking about Soros. I didn’t watch the whole thing, but got the idea.
My thoughts:
Beck has a lot of facts and is right about everything except one thing.
I’ll explain it with an analogy. Let’s say you are an expert on the 177 yr. tomato locust.
Your studies indicate that the 177 yr tomato locust will crawl from the ground and eat all of the Jersey tomatoes next year. Believing that this will happen, you buy up all of the canned tomato paste hoping to make a fortune. If nothing happens, you will be broke with lots of tomato paste. If you are right, the 177yr tomato locusts will eat all of next year’s tomatoes and the price of tomato paste will skyrocket. And that’s exactly what happens.
Did you hope that the 177yr tomato locusts would eat all of the tomatoes? yes
Did you make a fortune on it? yes
Did people loose their money, farms and life savings? yes
Do you think you are really smart because you figured this out? yes
Did you cause the 177yr tomato locusts to crawl from the ground & eat the tomatoes? no
Did you cause the price of tomato paste to skyrocket? no
So, Beck is right about everything, except the cause/effect conclusion.
Will this story raise Beck’s tv ratings? Probably
The US will crash and burn with or without George Soros.
Soros is a loon right up there with Jimmy Carter..
New world order BWHAHAHAHA hows the Euro working.
hows the Euro working
Better than the $, that’s for damn sure.
i havent seen ONE post by anyone here who really seems to get the Beck man. if it wasnt for Beck, Van jones and Acorn would be alive and kicking,while collecting a boatload of your money and mine. the POS that sits in the white house has had a lot of his idealogys busted,and brought to light to the unwashed masses about people like van jones and bill aires, and as soon as the masses got a good whiff of where obuma was going with this motherfucker jones,that his ass was gone toot sweet. obuma has pulled his ass right back into the muddle right it isnt funny, and the best part about it is,,,he’s scared,and if you can read faces,his ass has been scared for about 6 months now. george soros…needs to be in a plane crash,like yesterday.
ACORN, Van Jones, Bill Ayres, blah blah blah fuckin’ RW Nutcase BLAH BLAH BLAH
when are you clowns gonna get a new line?
Obama has the markets up 70%, jobs being created, economic GROWTH,
the deficits being REDUCED – and you dumfuks go BLAH BLAH fuckin’ RW BLAH!
Pathetic.
Good to see they’ve loosened the straps and allowed you limited internet access again.
_________
Now you could give away all your tomato past to help the poor and hungry, or squeeze them for their last penny if they want any of your tomato paste. Soros by his massive market actions did cause market swings, which he took advantage of and drove down the value of various country’s currencies, which did greatly affect those economies for Soros’ gain. What Soros did is not like tomato blight.
It’s like engineering a tomato blight and setting it loose to reap the games. Bond villian style.
gains not games. Sorry sick today.
Mr. Fly;
You ave validated my thoughts exactly. Just sold off my remaining bonds today…..
That’s funny…. great minds must think alike.
________
Ouch, We California Types are not all that bad. Its just cuz the State can’t up our Property taxes like other states..What surprised me tonight was the super rally in commodities off of CPI data in China, yeah, it was leaked, but instead of fearing the idea of China Govt stopping it and therefore selling commodities..everyone bought commodities with the thought that the Govt couldn’t or wouldn’t stop inflation
California has enough rich people to solve their own problems. It’s craze childlike politics that plague California.
Please don’t get me started. It would please me to know [sic] end to give the peoples what they wanted.
I wish we were lazy, drug addled, spoiled leaches. Prop 19 defeat fucking ruined it for us.
Just saw the SOB off and let it float away.
So, is the correct play here -TMV?
What do ya’ll think of LVLT as a Chinese like lotto play…
buying a rice farm in the Philippines…usa is toast
If it taste delicious buy it.