The first one is that the US Government has been selling their shares of banks such as Citigroup and BofA and they are now planning to sell their toxic assets back to the banks and the public:
21 March (Bloomberg) -- The U.S. Treasury Department plans to wind down its $142 billion portfolio of mortgage bonds guaranteed by Fannie Mae and Freddie Mac by selling as much as $10 billion per month.This second report, is in the same line, but is also less worrisome because less likely to happen at the current market top:
Sales will start this month and be subject to market conditions, the department said today in a statement.
So what is it that worry me so much? It's the fact that governments are the worst "investors" you can think of. They never make a profit, and are 100% wrong when timing the market. Yet, if we were at a major top, it would mean that the US Treasury — and to a lesser extent, the UK government — are actually timing their selling very well. So is it possible that we are actually not at a top, and that yet another higher one is coming? How likely would that scenario be? This is an open question, and I would like to hear your opinion.
24 March (Bloomberg) -- A sale of the British taxpayer’s 65.8 billion-pound ($107 billion) stake in Lloyds Banking Group Plc (LLOY) and Royal Bank of Scotland Group Plc (RBS) is likely to start next year, creating a one-time budget windfall before the next election, according to four people familiar with the talks.
Lloyds, 41 percent government-owned, will probably be offered to investors first as the London-based bank is better prepared for a sale, said the people, who declined to be identified because the discussions are private and the plans may change. The coalition government would aim to return RBS, 83 percent taxpayer-owned, to majority private ownership by the end of 2014, three of the people said.