Fed Statement

 

Thank you to Zero Hedge.  Laughed out loud.

Not Wrong - Just Too Early

This interest rate inversion is very, very long in the tooth.  Make no mistake about it, 10 year treasury yields will become higher than the 2 year treasury yield at some future date.  It is not a matter of "if" but a matter of "when".  The gap between the two has become more and more narrow with short term rates going higher and higher.  When the "ship rights itself", it is going to become even more interesting than it is today.

Moving Day

 Missouri to Texas

Emptying out the storage locker.  I think this will be my last trip to Missouri and the Saint Louis region.  Time for something new.

Long Term Treasury Yields Rise

 

When an inversion eventually rights itself, the party is on (or over, depending upon who you are).

Enjoy the Ride

 So long Missouri, hello Texas.  Fed announcement later today.  The slow motion train wreck continues with a small number of people becoming incredibly wealthy and a large number of people paying more while getting less.  Fascinating.

The 2 Year / 10 Year Treasury "Un-Inversion" Ride

Inversions are fun until they are not

It has been a great one plus year ride as the 2 year yield surpassed the 10 year yield but like all good things, they must come to an end.  

Historically, when the "un-inversion" does finally come about (and it always does), there is a period of dizziness and nausea.

We are on that final loop-the-loop at this point.  The 10 year yield will soon begin to rise past the yield of the 2 year yield.

A few people are talking about how the Fed will ride to the rescue and immediately begin to lower the overnight rate and start a new round of quantitative easing to stem the bleeding.  I'm not so sure about that.  It is a different world today than when Greenspan and Bernanke had the big chair at the Fed.  BRICS was not yet an issue back then.  The ratings agencies (Fitch, Moody's and S&P) would shit a brick.  Buh-bye world's reserve currency status almost overnight.

Turns Out Buying Votes Has Consequences - Go Figure

Washington Post: 

IRS halts processing claims for pandemic tax credit tied to fraud

The measure was meant to help hard-hit firms, but the agency warns it is ‘not operating as it was intended’

The "Employee Retention Credit" that came about as a result of the Covid Scamdemic turned out to be the underwater earthquake that caused a massive tsunami of fraudulent claims...wow, go fucking figure, huh?  The number of fraudulent claims has caused the IRS to suspend the program.  The only reason that there were "hard-hit firms" in the first place was because the goddamned government made them shut their doors....because of the flu season.....mmmmkaaay....

Mr. Haney devises a plan with Ebb to file a claim for an Employee Retention Credit

Americans like to believe that we live in a Norman Rockwell United States and our "elected leaders" like to write policy and law as if we are all the residents of Bedford Falls.  Personally, I think that they know better and deep down most Americans recognize that there is a "critical mass" of assclowns, frauds, scammers, etc.  If you doubt that, just go look at the price of a new car.