The Financial Times – Fed drains monetary punchbowl but others replenish Most believe since the Federal Reserve began tapering its quantitative easing programme, monetary policy has turned from friend to foe for the stock market. Indeed, a significant correction was widely expected once support from the Fed waned, leaving many baffled by the recent rally… Continue reading Stimulus In The Markets
Real Time Economics – Fed Sends $79.6 Billion in Profit to Treasury The Federal Reserve‘s balance sheet grew to $4 trillion at the end of last year, and the larger securities holdings earned it enough interest to remit $79.6 billion to the U.S. Treasury. The central bank’s asset holdings rose by $1.1 trillion last year,… Continue reading Profit At The Fed
The Wall Street Journal – Adjustable-Rate Mortgages Make a Comeback Adjustable-rate mortgages, one of the main culprits of the housing crisis, are back in vogue. But banks say this time is different. Financial groups are sweetening terms to entice customers to take out these loans, known as ARMs, whose rates can jump after a few… Continue reading The Return Of Adjustable Rate Mortgages
CNN – Number of U.S. millionaires hits new high The number of U.S. households with a net worth of $1 million or more, excluding primary residence, rose to 9.63 million in 2013, according to a new report from Spectrem Group, a consulting and research firm. That’s more than a 600,000 leap up from 2012, and… Continue reading Millionaires On The Rise
FT Alphaville – Buffett gets the better of everyone, version 4,762 We have always admired Warren Buffett’s ability to combine hard headed capitalism with incredible popularity. America’s favourite billionaire and all that. But in his latest deal to swap shares in Graham Holdings for a Miami TV station, cash and stock, Mr Buffett appears to… Continue reading Buffett: Do As I Say, Not As I Do
BusinessWeek – Half of U.S. Business Schools Might Be Gone by 2020 Richard Lyons, the dean of University of California, Berkeley’s Haas School of Business, has a dire forecast for business education: “Half of the business schools in this country could be out of business in 10 years—or five,” he says. The threat, says Lyons,… Continue reading Will Online Classes Hurt Existing Business Schools?
Reformed Banker – Why did the stock market sell off today? – Wall Street Journal: Tensions in Ukraine and the Crimean peninsula – Yahoo Finance: Russians – Fox Business: Obamacare – CNBC: It didn’t sell off at all, it was actually a reverse rally – Forbes: Taxes are too high – Huffington Post: Taxes are… Continue reading Cartoons
The Wall Street Journal – Did Russia Just Dump Its Treasury Holdings? Foreign central banks’ Treasury bond holdings parked at the Federal Reserve dropped by the most on record in the latest week. Some analysts think the crisis in Ukraine is sparking the move. Their theory: Russia is shifting its Treasury bond holdings out of… Continue reading Fed Custodial Holdings: Is Putin Digging In For A Protracted Period Of Tension?
Comment The slumping Russian stock market (first chart) and the surging dollar against the Ruble (second chart) are a big negative for Putin’s economy. Some believe this will lead him to back off tensions in Crimea. We view these market routs in a different manner. The stock market’s decline, which we think is on the… Continue reading Russian Markets Update
Comment Yesterday Jim Bianco was on Bloomberg TV discussing the selloff in U.S. stocks and his investment strategy. To view the interview, click on the image above. To view any of our recent interviews, click here.
House Of Debt – Weakening Economy or Just Bad Winter? The evidence is pretty clear. New auto purchases in January 2014 were more than 5% down in states that were more than 7 degrees below their normal January temperature. New auto purchases were down slightly in states that were between -7 and -4 degrees below… Continue reading Auto Sales And Weather
The Economist – Buttonwood: The big issue Are credit markets getting frothy again? SETH KLARMAN, who runs Baupost Group, a big hedge fund, is worried. In his latest letter to investors, he writes that “a sceptic would have to be blind not to see bubbles inflating in junk-bond issuance, credit quality and yields.” Recalling the… Continue reading A Credit Bubble?