Friday, May 17, 2013
Thursday, May 16, 2013
Quantitative Necrophilia --------------------------------------------- The 3 Month T-Bill Is Telling Us The Economy Is Dead
Near the end of the movie Eyes Wide Shut, the protagonist Dr. Bill Hartford played by Tom Cruise examines the dead body of the prostitute who saved him at the infamous orgy. The way the morgue scene is played leads the audience to wonder if the doctor is sexually attracted to the fresh corpse.
Near the end of the cheap oil borrowing and spending binge known as the post-war global shopping mall clusterfuck, the Federal Reserve run by Dr. Ben Satanke examines the body of the industrial economy after a series of fatal bankruptcies. In the way the scene plays out, the viewer learns that the doctor has decided to dress up the corpse for one last orgy of consumption. Being an accomplished doctor the fed chairman knows that eventually the corpse will begin to get stiff and cold, but this long term issue does not concern him - he is only concerned with the short term thrill of bringing the warm dead body back to the party. With a little makeup they'll be lining up to hit it.
The 3 month treasury bill is dead. As of today's close it is yielding 0.04%. Before it died it was yielding nearly 5%. It doesn't show any sign of gettng back up because there is no life in the economy other than a QE induced stock market blow off and a desperate attempt by the consumer to make it all go away by going on doomed Carnival cruises and eating out at Chipotle.
This monster chart presentation brought to you by your Chartist Friend from Pittsburgh will leave you thoroughly disgusted.