"The second scene from the 1975 cult classic "The Rocky Horror Picture Show" keeps running through my mind. The lyrics to that catchy tune, "Dammit Janet", are perfect during periods like the past two weeks when BOTH our beloved spoos and the chartreuse have ripped higher. For those who stayed the course and held on […]

Janet's Jello Shot Recipe -50m 3oz packets of lime Jello -3m gallons of boiling water -10m 750ml bottles of Don Julio 1942 -10m 750ml bottles of Green Chartreuse Liqueur -2 tons of salt -4 trillion of monetary base Mix liquids together, pour into 230m shot glasses, chill, salt rims, and distribute to the entire adult […]

From the close of business on 30-Sep to the close of business on 10-Oct, while the US government was shut, the following market moves took place: VIX: 16.6 -> 16.48, -0.12 SPX: 1682 -> 1693, +11 10y: 2.61 -> 2.68, +0.07 EDZ6: 97.74 -> 97.76, + 0.02 MOVE: 80.16 -> 80.08, -0.08 DXY: 80.22 -> […]

Back in 2011 I put out a number of commentaries on the debt ceiling showdown. I was thinking about something new to write on this subject given the current situation, but everything was just a rehash of previous thoughts. As such, I am reprinting excerpts from two old commentaries below - the first from May […]

"We the people are the rightful masters of both Congress and the courts, not to overthrow the Constitution but to overthrow the men who pervert the Constitution.” - Abraham Lincoln "The threat of defaulting on government obligations is a powerful weapon, especially in a complex, interconnected world economy. Devoted partisans can use it to disrupt […]

I don't know how many times I have heard the words "pushing on a string" from the QE-hater community, but it certainly has been in the thousands, maybe even the tens of thousands. When I hear those four words I usually just get out my chart of spoos, or the nikkei, tap my pointer finger […]

I have to admit, even as bullish risk assets as I am, and as happy as I am today with a spoos and chartreuse position, I didn't believe these guys would deliver so strongly on the dovish side. My hat's off to my colleague Ward McCarthy who stuck to his guns throughout the past couple […]

Over the last couple months the Obama administration made it clear to all who would listen that Larry Summers was their choice for Fed Chairman. And by last week, most folks on both the investment side and policy side were resigned to the idea of a Summers Fed. There was not a single client meeting […]

There is no question that Larry Summers was the Administration's favorite to be the next Fed Chairman. And there is no question that his confirmation process would have been highly combative, creating some severe increases in market, and even economic, volatility. But the market had been coming to grips with a Summers Fed, and the […]

The payroll report is NOT indicative of an economy that's killing it! Net of 2 month revisions, we added less than 100k new jobs this month. Also the household survey showed a drop of 115k jobs last month - and the only reason the U-rate fell to 7.3 is because 312k folks left the labor […]