The Financial Times – Martin Wolf: Europe has to do whatever it takes The new European Commission needs to take a stand for common sense and growth In the second quarter of this year, real domestic demand in the eurozone was 5 per cent lower than in the first quarter of 2008. The eurozone’s unemployment… Continue reading Taking Action In Europe
The Wall Street Journal – Jon Hilsenrath: Fed Frets About Market Rate Expectations A San Francisco Fed study on market expectations for short-term interest rates is notable because it underscores a concern that has become prevalent among many Federal Reserve officials: They have laid out their expected path for rates during the next two years,… Continue reading The Market Is Not Listening To The Fed, Is It Right To Do So?
CNBC –Stock gap: American stock holdings at 18-year low According to recent data from the Federal Reserve , America has the lowest level of stock ownership in 18 years. Yet stock ownership for the wealthy is at a new high-and that has accounted for most of their good fortune compared to the rest of America.… Continue reading Stock Market Skepticism
<Click on chart for larger image> Comment We have documented how the stock market has risen on low volume while the Treasury bond market has risen on increasing volume. The charts above show volume of corporate and agency securities reported by the primary dealers to the New York Fed. While these charts show volume is… Continue reading Corporate And Agency Bond Volume Stays Low
The Wall Street Journal – Bank of England Gov. Mark Carney Signals Spring Rate Rise Clearest Statement Yet on Timing for Interest Rate Increase The Bank of England is likely to meet its inflation and jobs goals if it starts to raise its benchmark interest rate early next year, Gov. Mark Carney said Tuesday in… Continue reading The BoE Readies Rate Hikes
<Click on chart for larger image> The Financial Post – David Rosenberg: Why the holy grail of escape velocity still eludes the global economy The fact that on a global basis the U.S. economy has emerged as the smartest kid in summer school is of little consolation. Not after coming off a week in which July… Continue reading More Sluggish World Growth
Real Time Economics (WSJ Blog) – Why More Renters Aren’t Buying (Hint: Weak Incomes, Savings) A new survey says that younger workers and other renters aren’t turning away from homeownership because they lack the desire to own homes. Instead, they’re staying on the sidelines because they lack the capacity to purchase. The analysis from the… Continue reading Renting vs. Buying
The Financial Times – Gideon Rachman: Why investors are ignoring war, terror and turmoil Global political change has done more to create opportunities than to destroy them The disconnect between the markets and politics has been particularly stark recently. Last week, even as the newspapers were filled with stories about war in Ukraine and the… Continue reading Ignore Geopolitcs
MoneyBeat (WSJ Blog) – Wall Street Bear Changes Course A prominent Wall Street bear just ditched his pessimistic views on U.S. stocks. Deutsche Bank’s strategist David Bianco planted his flag in the bullish camp on Monday, saying he now sees ”a long lasting economic expansion of moderate growth, which should rival the U.S. record of… Continue reading Are Strategists Too Bullish?
<Click on chart for larger image> The Telegraph – Britain faces storm as giant global investors awaken to break-up dangers Powerful investors across the world have woken up to the possibility that Scotland may vote to break up the United Kingdom, with some already preparing defensive action that risks a potentially dangerous flight from sterling… Continue reading Scotland’s Vote For Independence
Yahoo – David Tepper Calls an Audible With 10-year yields rising the most since the first week in June, bond bears started sticking their heads outside their caves last week, looking to feed and remind us once more that investing in Treasuries is akin to swimming in gasoline in a lightening storm. Emboldened by comments… Continue reading More On David Tepper