June 13. 2010.

June 13. 2010.  Stocks remain under pressure, closing at the lowest level in 2 1/2 months, although a late announcement that the Basel capital charge requirement might be reduced from 3% to 2.5% caused a reversal in bank stocks. BAC and JPM were both at new lows prior to the news, ended with outside days and higher closes. From FT: “US equity outflows are largest in ten months.”  In terms of stocks, moves by central banks to relax pressure on “commercial” banks appear to have less and less of a catalyst effect.

–“The debt level of the USA is disastrous,” Mr. Juncker said. “The real problem is that no one can explain well why the euro zone is in the epicenter of a global financial challenge at a moment, at which the fundamental indicators of the euro zone are substantially better than those of the U.S. or Japanese economy.”  I think I can take a stab at it…it’s because the assets held at the ECB and throughout your banking system are of dubious value, perhaps even more than in the US.

–Juncker omitted China, where the latest data show decreased lending, expected 650rmb actually 552.  Also, an item on ZH notes that while the press trumpets US deleveraging, total consumer and mortgage debt have declined by about $1T, about the same amount that has been WRITTEN OFF by banks.

–No data today…another day nearer to end of QE2.

Posted on June 13, 2011 at 12:12 pm by alexmanzara · Permalink
In: Eurodollar Options

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