Today’s Call: Spain 5yr Credit Default Swap to rise. Currently 315.20.
Rationale: Spain has been out of the news for some time as Greece’s debt problems have taken center stage. However, the chance of increasing unrest along with the realization that banks will likely have to roll over existing sovereign debt in Europe will likely raise risk premiums on all sovereign debt, with Spanish debt being one of the more vulnerable.
Result of Call for June 22, 2011: Yield on 10 US Treasury to fall, price to rise. Was 2.99%, Currently 2.93%. Bad Call.
Calls to Date: Good Calls: 31, Bad Calls: 27, Batting .534
Daily Default: Los Angeles Dodgers
Key Indicators for Monday, June 27, 2011
Copper Price per Lb: $4.07
Oil Price per Barrel: $91.30 A FAILURE TO INFLATE
Corn Price per Bushel: $6.60 MONETARY POLICY IS NOT WORKING
10 Yr US Treasury Bond: 2.93%
FED Target Rate: 0.08% UH OH!
Gold Price Per Ounce: $1,497 BENEFITING FROM PERMANENT UNCERTAINTY
MINT Perceived Target Rate*: 2.25%
Unemployment Rate: 9.1%
Inflation Rate (CPI): 0.2%
Dow Jones Industrial Average: 12,044
M1 Monetary Base: $1,895,400,000,000 RED ALERT!!!
M2 Monetary Base: $9,086,900,000,000 YIKES!!!
*See the MINT Perceived target Rate Chart. This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy. This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.