Bruce Krasting's Blog

Bkrasting [at] gmail [dot] com ()

I worked on Wall Street for twenty five years. This blog is my take on the financial issues of the day. I was an FX trader during the early days of the 'snake' and the EMS. Derivatives on currencies were new then. I was part of that. That was with Citi. Later I worked for Drexel and got to understand a bit about balance sheet structure and corporate bonds from Mike Milken. I was involved with a Macro hedge fund later. That worked out all right, but it is not an easy road. There was one tough week and I thought, "Maybe I should do something else for a year or two." That was fifteen years ago. I love the markets. How they weave together. For twenty five years I woke up thinking, "What am I going to do today to make some money in the market". I don't do that any longer. But I miss it.

VP Biden Wins Prestigious “Postpony” Award

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I’m going to give Biden an award for his words. I call it the “Postpony”. I’m tired of the phrase, “kick the can down the road”. When Biden spoke about SS he was kicking the can. He was pushing a strategy of postponing a debate/resolution of something that is important for the country’s medium and longer-term future.

A Hint From Draghi on the Euro?

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So Mr. D spoke and said nothing at all. Those that expected a “big stick” from the boss at the ECB are very disappointed. The initial market reaction to this dud is a down move in equities and the Euro while Italian and Spanish yields soar.

On Rats

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Way back in 2007 a fellow by the name of Herve Falciani was working as a computer guy for HSBC in Geneva, Switzerland. He stole the bank records of 24,000 customers who were stashing money.

Bloodletting

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London has always been the center for the Euro dollar deposit market, but most banks had NY operations that also made markets in Euro depos. For a time, I sat on one of those desks. This was way before the Internet and live-streaming prices.

Another Surprising Conversation With “Athens”

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The EUR rate against the major crosses this morning does not reflect the views of my friend. The current EURUSD 1.2570 rate reflects the market thinking that there is no immediate crisis. It certainly is not a price that contemplates a Euro without Germany. Should “Athens” thinking on the outcome gain some traction, then the Euro is headed much lower.

$7 Million a Minute

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The Swiss National Bank (SNB) intervened in support of its 1.2000 currency peg against the Euro to the tune of CHF 60 billion ($66B) in the month of May. The vast majority of this intervention occurred during European trading hours.

Another Bear Awakens

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I talked with a Swiss banker from Geneva today. The conversation went like this: BK – Are you guys still seeing boatloads of money coming in from outside the country?

IRS Cuts Deals

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The other day the IRS announced new rules for settling tax liabilities for individuals. It’s a sweet deal. I thought that was interesting. Then yesterday we get an announcement from Altria (MO) that they too have cut a deal with the boys at the IRS. Coincidence? Leading indicator?

A Surprising Conversation with Athens

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If you read me on a regular basis you know that I speak with a fellow in Athens who is connected to the shipping industry and the government. I provide links below to some of those articles to establish this person’s credibility.

On the Social Security 2012 Report to Congress

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The Social Security Trust Fund (SSTF) 2012 report to Congress is now out (link). It’s 242 pages and contains a great deal of information. I have reviewed a number of sections in the report that I consider to be key measures of SS’s health.

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