Coal in my sock

Picked up a lot of arch coal (aci) for $34.1 (no stop)


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New Positions, out of 1

Bought Oil Service HOLDRs (OIH) @ $144 (NS)
Bought TX Municipal Gas Bonds, @ 102.702 with 5.25% due 2017

Sold Frontier Telecom (FTR) @ 9.2, cost basis 7.6, 24% total return with dividends

Needing a want

In this world there are needs and wants. The needs come long before the wants.


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Commodity Stocks Going Higher

Softs, Coal, Oil -- they're all going up. Time to load the truck up.

Bought Petrobras (PBR) @ $37.39 (NS)
Bought Mosaic (MOS) @ $73.50 (NS)
Bought MolyCorp (MCP) @ $55 (NS)

Right now I'm holding tight on Gold. Waiting for the follow through before buying more.

The great off balance sheet SIV: The Fed

Today the Fed announced that is rebating the Treasury approximately $78B it made from interest on the investments it owns on behalf of the "American People".

FY2010 interest payments by the treasury were $410B. That means the Fed not only has the largest custodial holdings of treasuries in the world (~$1T) thereby providing much needed demand in the treasury market, it also materially reduces the interest payments of the United States government by the tune of 19%.

As the Fed continues to expand its balance sheet, expect interest rebates to soar above $100B per annum and likely reduce interest payments the Treasury has to make by over 25%.