Corn away

So I'm definitely not a farming expert, but Sunday I watched a farmer mow down his drought killed corn field.  That's the first time I've ever seen a field just mowed down so late in the summer.  I do know that corn prices have shot up and that more then half the food out there uses some corn based something, high fructose corn syrup, feed for animals, etc.  So basically it's how bad does this push inflation and does the Fed care.  It may not effect the core CPI and we'll have QE3 like he market seems to expect.  Real fun will be if the ethanol requirement for gasoline gets removed and what that will do to gas prices.

Europe still driving the car

Italian 10 year is back over 6.5%.  I know Spain is the big watch point right now and it looks bad but Italy is the next problem that's twice as big.  US Treasuries are flirting with all time highs while equities are still near the top for the year?