So slides the Usd again. DXY index about to break lows, while euro is trading at 17 month highs. Gold moving into positive territory for the day. The Usd prinitng continues…

“The Securities and Exchange Commission and the Commodity Futures Trading Commission are struggling to fill crucial jobs, enforce new rules, upgrade market surveillance technology and pay for travel.

On a recent trip to New York to tour a trading floor, a group of employees from the commodities watchdog rode Mega Bus both ways, arriving late to their meeting despite a 5:30 a.m. departure. The bus, which cost $30 a person round trip, saved the agency roughly $1,000 over Amtrak.” (NYT)

We wish them good luck chasing the bad guys.

http://dealbook.nytimes.com/2011/05/03/u-s-regulators-face-budget-pinch-as-mandates-widen/?ref=business

“Consider a turkey that is fed every day. Every single feeding will firm up the bird’s belief that it is the genreal rule of life to be fed every day by friendly members of the human race “looking out for its best interest,” as a politician would say. On the afternoon of the Wednesday nefore Thanksgiving, something unexpected will happen to the turkey. It will incur a revision of belief.”

“The turkey problem can be generalized to any situation where the same hand that feeds you can be the one that wrings your neck.” s 40, Black Swan, Nassim Taleb

Could a further collapse in Silver prices pop the equity bubble, and leave us with a small black swan event? Silver puking again. We welcome our short term target of 40 Usd.

Dax turning lower intraday on ECB early hike rumours. Vol is picking up, and now trading +4,5% on the day. Last time vol was here, Dax was lower…..Let’s see if these domestic buyers are proven wrong?

Remember when everybody was puking vol, only a week ago, and CNBC proclaimed Vol index not being fear index any more. European vol is up some 13% since then. Things change in a rapid fashion.

http://www.thetrader.se/2011/04/24/volatility-vix-skew-do-people-understand-what-they-talk-about/

ECB: Sources see more rate hikes on the way; discussion on timing

–A lot of arguments being heard in favor of early move

–But unlike 2005, EMU now in debt crisis and recovery uneven

–Still, rate policy unaffected by ongoing liquidity supports

–Full-allotment mode likely kept longer for 1-week refis

–Dormant bond-buying signals that governments should handle banks

–Opposition to Greek debt restructuring an issue of timing

–Alternatives possible if Greek debt unsustainable

Swedish government sold a big stake in their Nordea Bank holdings 3 months ago. After those 3 months have passed, today, they are now able to sell the remaining shares. The Swedish government is holding app. 14% of the bank. If they proceed in seeling the rest of the shares, we are looking at the OMX index underperforming the broader market as this will drain a lot of liquidity from the relatively small Swedish market.

Interactive mapping of the reactions with regards to the killing of Bin Laden.

http://www.nytimes.com/interactive/2011/05/03/us/20110503-osama-response.html?hp

Silver bears are back. Paper war started some days ago. The spread between physical and paper will diverge even more…Courtesey Mr Silvergoldsilver.

http://www.youtube.com/watch?v=u9LcKcXpCDE&feature=player_detailpage

Could the Bin Laden killing back fire on Obama? While people celebrated and cheered the killing, more people are speaking out loudly whether this was the way to do it or not.  

“It was quite clearly a violation of international law,” .

It was a view echoed by high-profile Australian human rights lawyer Geoffrey Robertson.

“It’s not justice. It’s a perversion of the term. Justice means taking someone to court, finding them guilty upon evidence and sentencing them,” Robertson told Australian Broadcasting Corp television from London.

“This man has been subject to summary execution, and what is now appearing after a good deal of disinformation from the White House is it may well have been a cold-blooded assassination.”

Robertson said bin Laden should have stood trial, just as World War Two Nazis were tried at Nuremburg or former Yugoslav President Slobodan Milosevic was put on trial at the war crimes tribunal in The Hague after his arrest in 2001. (Reuters)

http://www.reuters.com/article/2011/05/04/us-binladen-legitimacy-idUSTRE74318620110504

But on the other hand, Obama’s poll figures skyrocketed…

http://www.reuters.com/article/2011/05/03/us-binladen-poll-idUSTRE74252O20110503