10Y-3M Yield Spread Breaks Above Zero First Time in Over 2 Years

And Fed is upset banks won't dress up like hobos and soil themselves in public. And reverse repos down to $110B, and Chinese rates plummet fastest since 2008.

Another sign we are very close to the final banking crisis. Since 1989, once the 10Y-3M spread breaks above zero, we are 1-6 months away from a financial calamity. Once the Fed cuts again this week, we'll be 25 basis points higher on the spread. Historically, once we hit about 60bp on the spread after breaking above zero, the next recession hits. Red line below, at around the 60bp mark, around where all 4 recessions since 1990 have kicked in, shaded areas.

By the end of the week we should be at about 30bp. So we should be about 30bp away or so. All the ducks are lining up in a row as they say.

The Planks Of Evil Are Falling All Around

Trudeau is down, or he will be going down in the next few days. That guy creeps me the hell out, I mean deeply disturbs me. His finance whatever Chrysta Freeland, who is arguably even worse than he is, just got into some sort of catfight with him over Trump's tariffs and resigned, which means he's going to have to resign pretty soon, which reports indicate he's about to do. I have never been a fan of tariffs, they are just taxes like all others, but if the threat of Trump tariffs can bring down a vile snail Castro bastard son like Trudeau then I guess this is the first positive thing I can say about tariffs or the threat of them.

Musk should give Trudeau a free spot on the next SpaceX flight off the planet and just leave him there in space for the rest of eternity. I wouldn't even want him buried here or ashes spread anywhere. They'd contaminate anything they touch. Put Freeland up there too in orbit with him. Let them enjoy themselves.

The world is changing fast now. You have no idea how exciting (and dangerous) it is up here in the Golan now that Syria is gone. The Druze on the Syrian side of the Golan are begging Israel to annex them so they can reunite with their families on our side. My wife works with a lot of them at the school she teaches gymnastics at and they're tearing up with excitement and hope for the future.

Iran may fall next, and it looks like Hamas is terrified of what Trump might do and we are expecting a deal to get the rest of the hostages out of hell by Hannukah, which falls out on December 25 this year, so I guess the cofounders of the West will be celebrating together in 2024.

I'm getting the tingly feeling that this Trump term might not be a complete waste like the last one was. I am hopeful.

$110B Left in RRPs

We are down to the final $110B. Hopefully we can get rid of it all by January 2 when the debt ceiling kicks in. And hopefully the republicans just raise the ceiling immediately so we don't have to deal with this stupid countdown again and eat up valuable Big Pharma terrorizing time.

Yuan Testing 17-Year Lows, Chinese Yields Plummet Fastest Since 2008