July 29.
July 29. Nancy Pelosi on Thursday’s vote: “What we’re trying to do is save the world from the Republican budget. We’re trying to save life on this planet as we know it today.” I’m sure that’s very reassuring to someone starving in Somalia. I’m personally a little sick of hearing the budget impasse referred to as a “crisis”. The people in Japan have a crisis with the tsunami. The people in Joplin who lost their homes and possessions have a crisis. A family that can’t feed the kids is in crisis. I was at a party last weekend where a well to do guy was asking about the budget impasse, and went on to say he was worried his wife wouldn’t get her social security check. Here’s what he ought to be worried about: people who need assistance just to scrape by. Because they know desperation.
–The markets certainly aren’t in crisis mode. Ten year yield remains below 3% even without QE and in spite of an auction week. Treasury vol is getting hammered. There was a seller of 3k TYU 123/126 strangles from 61 to 59 before the close. A couple of days ago TYU atm straddle was 226, settled yesterday at 204. Even with the sell off in stocks, SP500 is in the middle of the range for calendar year 2011. Where’s the panic?
