Long Weekend Reading List

As IF you had NO other plans, we wanted to pass along a few things that we missed earlier on AND are worth a look. You’ve got the extra day, for cryin’ outloud, so you’ve got NO excuses!!

WSJ story we linked to earlier on we’re not sure is getting nearly enough attention:

Congress Weighs a Pension Bailout


Congress Weighs ANOTHER – HUGE – AND NOT GM related – Pension Bailout?

Call us crazy. You wouldn’t be the first and we’re sure you wont be the last. OUR POINT? Here’s an excerpt from the story:

The effort reflects a worrisome new problem in the nation’s troubled retirement-savings system: the grim financial condition of such pension plans, known as multi-employer plans. They are common in the hotel, construction, trucking and other industries, and cover about 10 million workers, or almost one in four workers who have a private pension.

Back up the tape. Worrisome and new? Can you spell PBGC? Funny enough how it is that THEY have remained OUT of the h’lines lately? Sheila and BenJAMMIN’ takin all the spotlight lately. Interesting, though, as this is now both worrisome and NEW to the fine folks at the WSJ? Really??

Suppose a rude-and-crude assessment of this makes it bond-mkt BEARISH in a broad sense – another stimulus would mean we’d see supply go back UP? Didn’t they just start reducing issuance? Although, more supply (front end where they started to CUT?) would fit nicely with our continued and recent view of a flattener – which is nice. We’ve got THAT going for us!! Anyone elses head spinnin yet? Hey, at least heads are spinnin and it has nothing at all to do with yesterday’s stock-jockeys.


Thursday’s Rally — What’s Really Changed?

Technicals explain the bounce from deeply oversold conditions, but deleveraging and deflation still predominate.

What a difference a day makes,
Twenty-four little hours.
Brought the sun and the flowers
Where there used to be rain…

CUTTING RIGHT TO THE CHASE – it becomes another read of yesterday’s UKTel story on dwindling money supply – which is LESS than supportive of YESTERDAYS stock-jockey optimism!! Then again, we’re only bonditos, so what do WE know, right?

Finally, The Economist from this week has several items we thought worthy of your attention with the cover story – FEAR RETURNS – an obvious one. Goes on to talk about fundamentals being OK while politicians decision making capability, not so much AND SO fear is born. NOT SURE HOW TO READ THIS ONE FOR THE BOND MKT. READ AND DISCUSS ON MONDAY, THOUGH?? Moving right along, though, another story you’ll find is about how the US is contemplating MORE stimulus. Suppose the stock-jockeys from yesterday’s BID missed this one? (refer to above BARRONS story??). OUR FAVORITE ITEM, though, is one about how US consumers have been FRAMED – and how we’re all ‘suckers’ for what looks to be a special DEAL, which turn out to be MORE expensive than just paying full freight. THANKS FOR THAT.

The Economist, May 28th, 2010

Have at it and have a SAFE and enjoyable long weekend with friends and family.

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