Tag Archives: PMI Group Default

72 Hour Call for June 29, 2011

Today’s Call:  Euro to fall vs US DollarCurrently $1.4311:1€.

Rationale:  With the Greeks passing austerity measures in the face of widespread protests, the Euro got a temporary boost today.  These types of jumps usually pull back in the short term.  The Euro just double peaked on a triple top vs. the USD and is generally in a bear trend which should be reinforced post June 30th.

Result of Call for June 24, 2011:  10 year US Treasury Bond yield to fall (price to rise). Was 2.87%, Currently 3.108%.  Bad Call.

Calls to Date:  Good Calls: 32, Bad Calls: 28, Batting .543

Daily Default:  PMI Group, Inc., third largest guarantor of US Mortgages.

Key Indicators for Wednesday, June 29, 2011

Copper Price per Lb: $4.20
Oil Price per Barrel:  $94.93 A FAILURE TO INFLATE, WILL TREND LOWER

Corn Price per Bushel:  $6.98   MONETARY POLICY IS NOT WORKING
10 Yr US Treasury Bond:  3.11%
FED Target Rate:  0.08%  UH OH!

Gold Price Per Ounce:  $1,511 BENEFITING FROM PERMANENT UNCERTAINTY

MINT Perceived Target Rate*:  2.25%
Unemployment Rate:  9.1%
Inflation Rate (CPI):  0.2%
Dow Jones Industrial Average:  12,261
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.