While I am waiting for the race in Fontana California to start, I wanted to throw a few things that are on worthy of attention. This entire weekend is knee deep with information, so good luck trying to read it all!
Mortgage Bailout for Asian Investors
Last Wednesday I posted that the really big part of the new mortgage plan was not the silly applications to actual homeowners, but the gigantic expansion of support for Fannie/Freddie. The Chinese have made a bunch of noise on this issue, and they obviously wanted something done.
This weekend there are plenty of stories covering the nasty interplay of Asian investors and our expectation that they buy up all the debt we are going to issue.
Clinton: China Must Continue to Invest in U.S. BondsSecretary of State Tells Chinese 'We Are Truly Going to Rise or Fall Together'
Article covers our need for the money to keep rolling in.
Foreigners Wary of Long-Term U.S. Securities
Seems like appetite is waning?
Maybe, Possibly Some Details on the Bank Plan
This CNBC article says that we might get some details on the stress tests for the banks. Amazingly, there may even be results by Wednesday!!?? Does that stick out to you as a bit fishy? We know the big banks are insolvent, yet it appears that they will get a "seal of approval" after a fake stress test. This is quickly setting up to be the biggest scam we have seen so far. I fully expect bank stocks to go bonkers to the upside as they get a gold star form a fixed process. When is this crap going to stop?
I guess it makes perfect sense. Unable to do anything constructive because the banking system is so broken, the new plan will be to just call is "All Good" and keep pretending. Sadly I think the markets will love this charade. Bank of America and Citigroup could triple in price this week on this fraud. Keep an eye on this one.
Have a good night.