CNBC – CNBC All-America Economic Survey: CNBC’s Steve Liesman: Americans Finally Feel Better About the Economy Ninety-one percent of Americans now believe their home prices will either be stable or rise over the next year, the highest since March 2007. And for the first time in three years, Americans picked real estate ahead of gold… Continue reading CNBC’s Economic Survey
<Click on chart for larger image> Real Time Economics (WSJ Blog) – Two Fed Officials Suggest Reverse Repos May Need Borrowing Limits, After All It’s looking like the Federal Reserve may be taking its all-you-can-eat option off the menu. The presidents of the New York and Boston Fed banks have made the case in recent… Continue reading The Fed’s Reverse Repo Facility
Real Time Economics (WSJ Blog) – U.S. Economy’s First-Quarter Contraction Could Be Even Worse Than You Thought The U.S. economy may have contracted more than previously thought during the first three months of 2014, private economists said Wednesday based on new health care-sector data from the government. Some analysts said economic output may have contracted… Continue reading Q1 GDP Might Be Revised Even Lower
The Wall Street Journal – Investors Face Tough Walk on Easy Street The Federal Reserve Bank of Chicago on Wednesday reported that its financial conditions index, with over 100 measures ranging from debt issuance to consumer surveys on credit conditions, showed America last week faced its easiest financial conditions in 20 years. Indeed, the last… Continue reading The Fed’s Financial Conditions Index
<Click on chart for larger image> Channel Partners – Expect Tech M&A Activity to Explode Following a first quarter that saw a big spike in tech merger activity, look for more of the same the rest of the year. So say Morrison & Foerster and 451 Research in their biannual M&A Leaders Survey report. Tech… Continue reading M&A Activity
The Financial Times – US companies keep buying and keep borrowing As I pointed out in “US corporate debt and cash flow”, US companies have been the key buyers of the stock market and the rate at which they have been buying shares is unsustainable, because debt cannot continue to grow at the pace needed… Continue reading Stock Buybacks
MoneyBeat (WSJ Blog) – Here’s How Quiet It Really Is in the Stock Market The stock market has been one big snoozefest over the past few months. Yes, it has inched higher more often than not on a daily basis and has set a number of new record highs along the way. But the one-day… Continue reading A Different Look At Volatility
The Wall Street Journal – Paul Volcker: Back to the Woods? Former Federal Reserve Chairman Paul Volcker called last month in Washington for a new Bretton Woods, the 1944 conference of World War II Allies that set up an international gold-exchange regime. His remarks received little media attention…In his speech, Mr. Volcker also reprised the… Continue reading Volcker Calls For The Gold Standard
MoneyBeat (WSJ Blog) – Behold the Burrito Bond Bond bubble? What bond bubble? These bonds give out free burritos! London high street fast food outlet Chilango, favored by City types with elastic waistbands, is offering an 8% coupon on a four-year corporate bond that gives some buyers a free burrito* every week for the lifetime… Continue reading Reaching For Yield…And For Lunch
Charts of the Week Topics Covered This Week Include: Mutual Fund Flows Wage Growth An Aging Workforce Employment In Pictures Employment In Pictures – 2 Employment In Pictures – 3 Household Net Worth Hits New Record An Updated Look At The Myth Of Cash On The Sidelines Russian Sanctions & The Yuan Volatility Household Debt… Continue reading Charts of the Week
Comment Most market watchers still subscribe to the belief that corporations hold record amounts of cash on their balance sheets just waiting to unleash into the economy. In March 2012 we pointed out how the Federal Reserve revised away nearly half a trillion dollars from corporate balances sheets (red line, all charts below): One of… Continue reading An Updated Look At The Myth Of Cash On The Sidelines