Heart’s Desire

Well markets got what they wanted today when both the BoE and the ECB indicated that they would be doing “more” – in the case, QE – over the summer.

The Fed did its bit after the close yesterday by authorizing the big banks (except Deutsche Bank, which is probably doomed anyway) to buy back their shares. Of course, they all promptly announced massive buybacks, which they will fund by borrowing from one another thus piling on more debt.

So the debt bubble gets bigger, the banks get worse, the pension funds struggle, the economy slowly dies and it goes on and on. It is becoming farcical.

It is the last day of June, the second quarter and the first half. So much window dressing and manipulation to manage reporting is going on. Notably the (record) Treasury shorts just slammed the bonds as they appeared to be running away to the upside and that wouldn’t look good.

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