Sept 15. Japan intervenes
Gold and silver exploded as the Fed…oh wait not the Fed, but Goldman’s Hatzius, said the govt may engage in a new QE round of 1T by Nov or Dec. Treasury yields fell in spite of a weaker dollar, with tens down 8 bps to 2.66%.
–Japan intervened today causing a large drop in the yen and a pullback in treasuries from yesterday’s rally.
–From UK’s Telegraph: ‘America and Europe face the worst jobs crisis since the 1930s and risk “an explosion of social unrest” unless they tread carefully, the International Monetary Fund has warned.’ Tread carefully?
–From BBG: “The gap between the assets of the 100 largest company pensions and their projected liabilities widened by $108 billion in August from the previous month to a $459.8 billion deficit, actuarial and consulting firm Milliman Inc. said today in a statement.” [Due to loss of income from low bond yields and a slow economy] The shortfall is “like a silent heart attack,” said Kenneth Hackel, president of research and consulting firm CT Capital LLC. “People aren’t recognizing the symptoms until the patient falls on the ground.”
–On the political front a Tea Party candidate with little experience won Delaware’s senate seat primary. Some analysts said it’s now more likely that Democrats will take the seat in the general, but that might be a misread of the social mood.
–Empire State expected 5.0. Ind Prod exp +0.2 with Utilization 74.9% (from 2005 to 2007 was around 81%).
