U.S. Treasury Bills and the Budget Deficits, Financial Markets Review

Stock-Markets / Financial Markets 2010 Jan 19, 2010 - 04:57 AM

By: Bob_Chapman

The 10-year T-note auction showed a bid to cover of 3 to 1, versus a 10 auction average of 2.67%.

We have been told over and over again a weak dollar would build exports and turn our balance of payments deficit down. Well, it hasn’t happened yet.

The budget deficit was $9.185 billion for December, a 15-straight monthly decline. That is up from $51.75 billion in December 2008. That makes the first fiscal quarter a $388.51 billion deficit. Revenues were $218.92 billion versus $237.79 in December 2009, the lowest since December 2004.

Prime jumbo borrowers overall, that are 60 plus days delinquent, rose to 9.2% for December, almost three times last year’s 3.2% in December 2008. If you combine 2006 and 2007 combined they moved from 4.3% to 12.7%. The five big losers are California, New York, Florida, Virginia and New Jersey, which make up 2/3’s of the problem loans. California up 10.8%, up from 3.5%, or a 44% share; New York 5.8%, up from 1.8%, or a 7% share; Florida 16%, up from 7.3%, or 6%; Virginia 5.4%, up from 2.3%, or 5%, and New Jersey 7.1%, up from 2.3%, or 4%. The most expensive homes are now in free fall.

Goldman Sachs has admitted that they have been front running and opportuning against their clients in the fundamental strategies group, which is not subject to the same regulatory rules that equity research departments are. That is why they are called “Hannibal Lecterâ€