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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Augustus Gloop who wrote (13180)6/7/2012 10:52:36 AM
From: Hawkmoon  Read Replies (2) | Respond to of 33421
 
My concern is that many US banks have been relying upon holding US Treasuries for income to rebuild their balance sheets (buying them with cheaper funds from the Fed (1/4 percent) as the US national debt has nearly doubled.. But with current rates so low, it's likely to really impact their revenue streams and their ability to earn interest going forward.

So the question is whether these low rates are going to require banks to take more risks in lending to a private sector that is already burdened with debt and intent on de-leveraging and raising cash?

Hawk



To: Augustus Gloop who wrote (13180)6/8/2012 9:13:54 AM
From: John Pitera1 Recommendation  Respond to of 33421
 
here is an SPX wave scenerio for consideration:

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It appears as if the US stock market had a risk on in the morning and then a risk off in the afternoon.

John