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Making 65 cents, spending a buck


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Spending a buck while making 65 cents – Professional Edition

by Lee Adler, Tuesday, July 14, 2009, in Money and The Fed, Professional Edition | Permalink |Comments (0) Edit The 4 week bill auction was again very strong, signaling no diminution of strong buying interest from FCBs and others. So the game can go on. It had better. The Treasury released its monthly statement for June late yesterday and it revealed that revenues covered only 70% of outlays, continuing a weakening trend that began early in 2008. Tax receipts dropped 17% from June 2008. While the trend of diminishing receipts has slowed a bit, there’s no sign of an increase in revenues.

 

For the past year, on average, tax receipts have covered roughly only 65% of outlays. The rest must be made up with borrowing. The game can only go on for as long as our foreign lenders are willing and able. No doubt the will will always be there. They have too much at stake to risk withdrawing their lending support. So the question becomes one of how long they will be able to continue to fund $100 billion a month in Federal Government borrowing. When they no longer have the wherewithal, all kinds of questions arise. How much will the Fed print at that point? Will the government cut spending. Will it default on debt service? Will the US become a ward of the IMF? Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.

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INTC just blew out the Q...... and just blew off yer shorts...

 

Blew out the Aug QQQQ 35 and Sept QQQQ 34 puts I bought this afternoon.

 

I should know better than to reload this soon after the 4 week and 6-7 week cycles turn up, but it looked like price was pushing on a string this afternoon. As some say, never putz a dull market.

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SRS chart ? hows it looking ?

 

 

That gap from 7/2 at 19.30 looks pretty to me but the real index IYR has it's gap fill point relatively higher, because of the damn shrinkage, at 32.70.

 

An intermediate term swing trade on the levered ETF's is 3 days. They are a wasting asset.

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here's some recent hysteria for ya... :rolleyes:

 

I've been pretty busy at work so I missed the recent SRS runup. On Sunday I thought about buying some, fortunately I decided to wait on Monday before pressing the buy button, glad I did. As the real estate mess continues to unfold and pick up steam again I expect SRS to once again do well.

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"They" are absolutely desperate now to be coming up with crap like this:

 

NEW YORK, July 14 (Reuters) - U.S. government officials are weighing a plan that would let borrowers who have fallen behind on their mortgage payments avoid eviction by renting their homes instead, sources familiar with the administration's thinking said on Tuesday.

 

Under one idea being discussed, delinquent homeowners would surrender ownership of their homes but would continue to live in the property for several years, the sources told Reuters.

 

Officials are also considering whether the government should make mortgage payments on behalf of borrowers who cannot keep up with their home loans, tapping an unused portion of a $50 billion housing aid kitty.

 

Rooters Source

 

 

Making payments on behalf of borrowers? U F B

 

 

Will they pay my rent on my behalf too?

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