<Click on graphic for larger image> Bloomberg.com – Hong Kong’s Autonomy Tens of thousands of democracy activists took to Hong Kong streets in July to protest what they say is China’s increased political interference and to demand popular nominations of chief executive candidates. The rally came after almost 800,000 people voted in an unofficial referendum… Continue reading Protests In Hong Kong
The Reformed Broker – Josh Brown: You can’t even spell “capitulation” People are starting to freak out a little. A massive amount of individual stocks have dropped more than 20 percent from their 52-week highs this fall and this is beginning to dawn on folks. The bullshittiness of the S&P 500’s year-to-date gain – driven… Continue reading The Anatomy Of The Bull Market
CNBC – Economists slash Q3 GDP forecast, but see steady growth ahead Although economists have lowered their estimates for third-quarter U.S. gross domestic product (GDP) growth following an extremely volatile first half of the year, they see the economy growing steadily, according to a survey released Monday. The U.S economy will expand at an annualized… Continue reading Q3 GDP Forecasts Lowered
<Click on chart for larger image> The Financial Times – Fed ‘repo’ tests drive scramble for safety Investors are scrambling for safe assets ahead of the end of the financial quarter, with the scrum for securities exacerbated by the Federal Reserve’s testing of a key financing tool for an eventual tightening of policy. Yields on… Continue reading The Fed’s Repo Facility Near Quarter-End
The Wall Street Journal – Paul H. Kupiec: When Central Bankers Become Central Planners Macroprudential regulation is not likely to prevent asset bubbles. But credit allocation will depress growth. Few if any centrally planned economies have provided their citizens with a standard of living equal to the standard achieved in market economies. Unfortunately the financial… Continue reading Centrally Planned Economies
Propublica – Jake Bernstein: Inside the New York Fed: Secret Recordings and a Culture Clash A confidential report and a fired examiner’s hidden recorder penetrate the cloistered world of Wall Street’s top regulator—and its history of deference to banks. Barely a year removed from the devastation of the 2008 financial crisis, the president of the… Continue reading The Fed’s Relationships With Banks Is Why Macroprudential Regulation Will Not Work
The Washington Post – The new mantra of Fed doves: Patience Fedspeak is a constantly evolving language, and the buzzword this week is “patience.” That was the refrain sung by a chorus of Fed officials as they pushed back against speculation that the central bank might raise interest rates sooner than expected: The influential leader… Continue reading Timing The First Rate Hike
<Click on chart for larger image> The New York Times – Hedge Funds Lose Calpers, and More Assets at hedge funds, once a niche investment vehicle for ultra-wealthy investors, hit a record $2.8 trillion this year. There are now more than 10,000 hedge funds and counting. Their steep fees have minted scores of billionaire managers… Continue reading Hedge Funds Losing Their Luster
Bloomberg.com – Draghi’s Trillion-Euro Pump Finds Blockage Mario Draghi’s plan to channel as much as 1 trillion euros ($1.3 trillion) into the euro region’s economy is running into a blockage: some companies in the countries hardest hit by the debt crisis don’t want the money. “We’re getting calls from lenders every day,” said Miquel Fabre,… Continue reading Is The ECB Pushing On A String?
<Click on chart for larger image> The Wall Street Journal – Small Caps Miss Out on Stock Rally While blue chips are riding a bull market now in its fifth year, shares of small companies have struggled amid concerns over lofty prices and an early-year scare over U.S. growth. Even though small stocks look cheaper… Continue reading Small Caps vs. Large Caps
Bloomberg.com – Bond Warnings Emerge as ’94 Parallels Seen in Fed-CPI Split For bond investors who are convinced a lack of inflation will keep the Federal Reserve from upending Treasuries when it begins to raise interest rates, there’s one parallel in history that suggests they still have cause for concern. The last time consumer-price increases… Continue reading 1994 Redux?