Marketwatch – Are you ready for deflation? U.S. prices are tracking eerily with 1990s Japan For a generation, western investors have been haunted by the fear of inflation. Anyone who remembers the crazy 1970s, when prices rose by double-digits each year in most developed countries, flinches at the memory. But today we may face the… Continue reading Deflation Talk
The Telegraph – The Bank of England will never unwind QE, nor should it Britain has just carried out one of the greatest victimless crimes in modern financial history. It is in effect wiping out public debt worth 20pc to 25pc of GDP – on the sly – without inflicting serious macroeconomic damage or frightening… Continue reading Bank Of England Warns Of Interest Rate Rises
Arbor Quantitative Analytics – What Does Copper’s Collapse Mean for the S&P 500 / Shanghai Composite? Copper’s sharp fall has rekindled interest in what some used to call the metal with a PHD in economics. What is the state of the relationship between copper and the S&P 500 or Shanghai Composite? Some quick analysis shows… Continue reading Copper
The Financial Times – Analysts see prospects for China economic support A gloomy outlook for key Chinese economic data to be announced on Thursday is prompting analysts to predict that Beijing may take steps to stimulate the economy to prevent GDP growth from falling too far below its target of “about 7.5 per cent” this… Continue reading China
The Wall Street Journal – Muni Bond Costs Hit Investors in Wallet Investors Pay Twice as Much for Municipal Debt as for Corporate Bonds Investors who put cash into municipal bonds—a widely popular strategy for those seeking safe, tax-free bets—are paying about twice as much in trading commissions as they would for corporate bonds, according… Continue reading Investing In Munis Is Expensive
Dow Jones – Finra Warns of Bitcoin Fraud The Financial Industry Regulatory Authority has issued an alert to warn investors of the fraud risks of using Bitcoin, as regulators start to flex their authority over the fledgling virtual currency. The recent loss of nearly a half-billion dollars from a major bitcoin exchange is forcing U.S.… Continue reading Bitcoin
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
Real Time Economics (WSJ Blog) – Fed Missed Crisis Due To Narrow Mindset, Says Study A rare sociological analysis of Federal Reserve policy confirms what many economists already knew: top central bank officials missed the oncoming crisis because they failed to make the connection between housing, the banking industry and the economy. Fed officials argue… Continue reading How The Fed Thinks
<Click on chart for larger image> CNBC – Corporate debt fever rises to new record in 2014 Corporate America’s love affair with debt has intensified in 2014, with record levels of borrowing happening as feared rate increases have yet to materialize. This year was supposed to be the one where the rock-bottom rates began to… Continue reading Corporate Issuance
<Click on chart for larger image> Marketwatch.com – TIPS get some love from investors who worry about inflation As investors bought Treasury securities in the last few weeks, pushing up prices, TIPS yields fell more than Treasurys. That has widened the differential between the yields on the two different types of securities, known as the… Continue reading Inflation Expectations
<Click on chart for larger image> The Financial Times – New hedge funds face life or death battle for funding Securing early-stage funding is a life or death challenge for new hedge fund managers who face intense competition to win capital. With more than 800 new hedge funds starting up in 2013 and many more… Continue reading Starting A Hedge Fund