The Jim Rogers of the world continue to tell us the market won’t fund the US forever but they just took $53 bln in 3 and 6 month T-bills and there were bids for over $150 billion of them at this week’s auction. One day these guys may be right, just not today.
EUR/USD is better than a cent off its lows, trading above 1.3400. There is very little chatter in the market this afternoon as to the source of the EUR/USD demand. EUR/JPY is up a yen as well from the lows, now at 119.40.
On the wires, Larry Summers, Obama’s economic guru, says banks should exhaust private sources of capital before asking for TARP dough. This will raise the cost of capital to banks as the government was providing it on very favorable terms. That might be undermining the greenback a bit.