Some of the Nasty Rumors and News...

The US Senate has enough votes to defeat a Republican House Continuing Resolution to fund the government past the end of the Sept 30th fiscal year end. The Republicans seem to have put a poison pill in the bill and Democrats want it defeated in the Senate, which would shut the government down, they are also on recess next week so it may be a shut down of some importance.

Germany says Greek second round bailout may need to be revised.
From the German Finance Minister:

• GERMAN FINANCE MINISTER: MAY NEED TO REVISE 2ND GREEK BAILOUT - Dow Jones
• GERMAN FINANCE MINISTER: DOES NOT MAKE SENSE TO SPECULATE ABOUT NECESSITY FOR ADDITIONAL DECISIONS ON GREECE: RTRS
• GERMAN FINANCE MINISTER: THE RECAPITALIZATION OF EUROPEAN BANKS IS NOT A MATTER FOR THE ECB BUT FOR MEMBER STATES

US 30 year bond...

As the Fed unveiled operation twist and allocated the bulk of its buying in the 20-30 year bonds as 3C predicted, comparisons are being made to Black Monday of 1987 as the 30 year drops over 55 basis points this week. However, considering the Fed just announced twist, buying in the 30 year would be expected and I personally don't think it s a fair comparison to 1987 at all being there was no Federal Reserve intervention in Twisting the yield curve, still the panic head line has taken hold.

The Solyndra Scandal is getting more headlines as Solyndra executives have plead the 5th. Talk is already circulating of an Obama impeachment. This is the Solar Panel maker that was the recipient of a very large government guaranteed loan that seems to have been improperly given or at least was rushed ,through pressure from the Obama administration, the company then went bankrupt.

There are rumors now that Germany has more then $5 Trillion Euros in hidden debt.

European Banks are starting to say that the expected Greek bond default haircut of 21% could be much higher, some saying 50-60%.

In Greece it seems the Bond Exchange offer is now a dead issue. There are rumors Greece is preparing for a default with 50% haircuts for Greek bondholders, they of course deny it.

GLD is down on a rumor that a large hedge fund that is down 50% on the year may have to sell their only profitable position which is GLD to meet redemptions, this seems to me to be a very obvious finger point to Paulson.

On the other side, last night the G-20 issued a statement of solidarity in keeping financial stability.

Lots to mull over, but as you do, remember that most of these things can't be taken at face value alone. Whenever a bank is involved or Wall Street, there's almost always an agenda.