CNBC – Bitcoin transformative as the Web, venture capitalist says Bitcoin could be as “big as the Internet” in reshaping the world and spurring economic growth, said a venture capitalist and well-known booster of the virtual currency. “Virtual currency, particularly bitcoin, reminds me so much of that time in the early ’90s,” said Fred Wilson,… Continue reading Is Bitcoin As Important As The Internet?
Project Syndicate – Robert Shiller: The Financial Fire Next Time If we have learned anything since the global financial crisis peaked in 2008, it is that preventing another one is a tougher job than most people anticipated. Not only does effective crisis prevention require overhauling our financial institutions through creative application of the principles of… Continue reading Robert Shiller Speaks About The Financial Crisis
The Financial Times – Bond markets wrestle with Reverse Rotation After the Great Rotation comes the Reverse Rotation. At least, that is how it looks. Big pension funds are switching out of equities into bonds, in a sharp reversal of last year’s trend when stock-hungry investors powered a rally in shares. The move has undermined… Continue reading Pension Funds Switch From Equities To Bonds
March 2014 T-Bills <Click on chart for larger image> Reuters – U.S. Treasury bill rates jump on debt limit worries U.S. Treasury bill rates jumped on Friday on concerns that Washington won’t raise the government’s $16.7 trillion statutory borrowing limit in time before it is expected to be exhausted by early March. After their previous… Continue reading T-Bill Market Eyes The Looming Debt Ceiling Debate
<Click on chart for larger image> <Click on chart for larger image> Reuters – James Saft: Emerging markets pray for Wall St. tumble What struggling emerging markets need right about now is a big sell-off – in the U.S. Without a substantial downdraft on Wall Street, the Federal Reserve is highly likely to carry on… Continue reading Emerging Market Currencies Under Stress
Bloomberg.com – Yellen Faces Test Bernanke Failed: Ease Bubbles Janet Yellen probably will confront a test during her tenure as Federal Reserve chairman that both of her predecessors flunked: defusing asset bubbles without doing damage to the economy. The central bank’s easy money policies already have led to pockets of frothiness in corporate debt and… Continue reading The Fed Meets Today, Decides Tomorrow
The Financial Times – Investment cannot hide North Sea problems A resurgence in North Sea spending that saw investment hit a record £14bn last year has failed to calm fears that the UK risks failing fully to exploit its oil and gas reserves. The Wood Report, commissioned last June from Sir Ian Wood, former head… Continue reading North Sea Oil Production Continues To Collapse
The Financial Times – Henny Sender: China is biggest risk to emerging markets Tight credit and slowing growth create ripple effect across EMs Suddenly the prospects for emerging markets have dimmed further. On Wall Street, wary traders speculate on which countries and securities will be under the greatest selling pressure, doubtless to get ahead of… Continue reading Now China Is At Risk Of A Bust?
The Wall Street Journal – China’s Default That Wasn’t Like clockwork, a mysterious third party has sprung to the rescue, allowing China Credit Trust to repay the principal on high-yield investment products tied to a struggling coal miner. Savers will miss some interest payments and get a lower effective yield, but otherwise escape unharmed. So… Continue reading China Avoids A Default
Bloomberg.com – Barry Ritholtz: Friday Was a 90/90 Day and What It Means The technically significant issue was that Friday was a 90/90 day — more than 90 percent of the volume (94 percent) and of the points (97 percent) was down. A brief explanation for those of you who may not be so technically… Continue reading 90/90 Days
The Telegraph (UK) – Good economists are almost always right about almost everything So much everyday government policymaking is dominated by economic reasoning, such as the price controls imposed upon utilities Good economists are usually about as right as it’s possible to be. There, I said it. That shouldn’t be controversial. After all, that’s why… Continue reading Are Economist Always Right?