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Hedge Funds Sell Investors On “Downside Protection”
June 2, 2014
Bloomberg.com – Hedge Fund Investors Aren’t as Dumb as They Look There’s been a lot of discussion recently about why hedge fund managers get paid so much money.1 Curiously little of this discussion has involved asking the people who pay hedge funds all that money what they’re paying hedge funds all that money for. Presumably… Continue reading Hedge Funds Sell Investors On “Downside Protection”
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Post-Crisis, Banks Sell More Homes Than Builders
June 2, 2014
The New York Times – Floyd Norris: Housing on the Mend, Ever So Gradually ONE way to tell the housing market is beginning to show signs of health would be that builders of new homes are selling more houses than banks do. We are not there yet, but the gap is narrowing, even as overall… Continue reading Post-Crisis, Banks Sell More Homes Than Builders
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Determining An Equilibrium Short-Term Rate
June 2, 2014
Real Time Economics (WSJ Blog) – John Taylor: Interest Rates Should Already Be Higher The Fed has traditionally seen 4% as the appropriate rate for a healthy and balanced economy. This is also known as an equilibrium interest rate, associated with an economy delivering low unemployment and steady 2% inflation. The Fed said in its… Continue reading Determining An Equilibrium Short-Term Rate
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The Major Hurdle Bitcoin Must Overcome
June 2, 2014
<Click on chart for larger image> The Wall Street Journal – Bitcoin’s Futile Quest to Be a Currency Bitcoin is a fascinating and ingenious technology, but most promoters are mindful of neither the monetary nor the tax issues. For all practical purposes IRS regulations issued in March preclude bitcoins from being used as an alternative… Continue reading The Major Hurdle Bitcoin Must Overcome
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Cartoons
June 2, 2014
Newsclips
The Latest On The Bond Market’s Refusal To Acquiesce To The Consensus And The Economy
May 30, 2014
Comment Yesterday Jim Bianco hosted a conference call. The links below offer audio and video for those who missed it. [pageview class=”PDFViewer” url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=192″] Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/052914.mp3|titles=Conference Call ] [hana-flv-player video=”https://www.biancoresearch.com/bianco/SubscriberArea/052914.flv” width=”600″ height=”495″ description=”” player=”3″ autoload=”false” autoplay=”false” loop=”false” autorewind=”true” splashimage=”https://www.biancoresearch.com/bianco/wp-content/themes/twentyten/images/splash.jpg” /] Comment One of the topics discussed in the conference call was the overwhelming bearishness in the… Continue reading The Latest On The Bond Market’s Refusal To Acquiesce To The Consensus And The Economy
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Economists Cannot Forecast
May 30, 2014
The Financial Times – An astonishing record – of complete failure ‘In 2008, the consensus from forecasters was that not a single economy would fall into recession in 2009’ Now Loungani, with a colleague, Hites Ahir, has returned to the topic in the wake of the economic crisis. The record of failure remains impressive. There… Continue reading Economists Cannot Forecast
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QE and Stocks
May 30, 2014
<Click on chart for larger image> CNBC – Stocks could fall 15% to 20% as ‘QE fluff’ comes out of the market The S&P 500 could fall 15% to 20% this year as the Federal Reserve stops buying bonds, according to Peter Boockvar, chief market analyst at The Lindsey Group. Related: How to know if the… Continue reading QE and Stocks
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Bank Buying Of Treasuries
May 30, 2014
<Click on chart for larger image> The Wall Street Journal – Banks Cuddle Up with Uncle Sam’s Security Blanket The official line on Wall Street is that an abundance of caution among clients in the face of uncertainty, especially around the direction of interest rates, has depressed trading volumes, volatility and revenues. A similar tale… Continue reading Bank Buying Of Treasuries
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Munis
May 30, 2014
The Wall Street Journal – Mom and Pop Investors Return to Municipal Bonds Muni Debt Prices Storm Back After Last Year’s Rout Municipal-bond prices have come roaring back, reversing last year’s rout despite enduring financial challenges facing U.S. cities and states. The resurgence in the $3.7 trillion market comes as bond buyers attempt to find… Continue reading Munis
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Will Draghi Announce QE Next Week?
May 30, 2014
Money Beat (WSJ Blog) – Mr. Draghi–Your Public Awaits Ever since the European Central Bank president said last month that officials would be “comfortable” easing policy, investors have been figuring out how to respond to new efforts the central bank might deliver to head off dangerously sluggish inflation. Possibilities range from the mundane—a cut in… Continue reading Will Draghi Announce QE Next Week?