<Click on chart for larger image> The Wall Street Journal – EU Inflation Rate Falls to Four-Year Low Adds to Fears Bloc Could Enter Prolonged Period of Deflation The annual rate of inflation in the 28-member European Union fell to its lowest level in four years during October, adding to fears the bloc could be… Continue reading European Inflation
The Economist – Property in China: Haunted housing Even big developers and state-owned newspapers are beginning to express fears of a property bubble IN CHINA, property prices can keep going up forever. At least, that is what optimists seem to think. They point out that the country is undergoing the largest urbanisation in history. The… Continue reading China’s Property Market
The Telegraph (UK) – A belief in central bankers as a cure-all for economic ills is not confined to Britain Across the world, weak politicians have handed responsibility to unelected technocrats like Mario Draghi, the president of the European Central Bank Success as a chief executive, it is sometimes said, is largely about timing. Get… Continue reading In Central Bankers We Trust
A Smooth Transition
Reuters – Fed’s bond buying hasn’t boosted stocks, McKinsey study finds There is no evidence that the Federal Reserve’s massive bond-buying effort has led U.S. stock prices higher, according to a report released on Wednesday by the economics research arm of McKinsey & Company. Instead, study co-authors Richard Dobbs and Susan Lund found that the… Continue reading Study Finds QE Has Not Boosted Stock Market
<Click on chart for larger image> The Financial Times – It’s the first arrow of Abenomics that matters A year after Shinzo Abe gave notice of his plan to restore Japan to economic vigour, the prime minister’s first arrow of massive monetary expansion is flying as swiftly as anyone could have dreamt. The yen is… Continue reading Abenomics
Comment The charts above plot the relative performance of the S&P 500 (large cap stocks) versus the S&P 600 (small cap stocks) and differ only in their time frames. The Financial Times – Small no longer looks quite so beautiful Size isn’t everything. Indeed, of late, lack of it has been highly profitable. Small-cap stocks… Continue reading Small Cap vs. Large Cap
The Financial Times – JPMorgan feels the wrath of Twitter JPMorgan Chase cancelled a planned question and answer session on Twitter after the event attracted thousands of verbal attacks, in what may go down as a “case study” in how not to market on the social media website. Jimmy Lee, one of the senior bankers… Continue reading Who Says There Is No Such Thing As Bad PR?
The Washington Times – Russian lawmaker wants to outlaw U.S. dollar, calls it a Ponzi scheme Predicting the imminent collapse of the U.S. dollar, a Russian lawmaker submitted a bill to his country’s parliament Wednesday that would ban the use or possession of the American currency. Mikhail Degtyarev, the lawmaker who proposed the bill, compared… Continue reading Outlaw The Dollar
The Wall Street Journal – Jon Hilsenrath: Fed Debates Low-Rate Peg Federal Reserve officials are debating whether to strengthen their commitment to keep short-term interest rates near zero as part of their effort to keep boosting the slow-growing economy. But they face many unresolved questions about whether to make such a move, and if so… Continue reading The Fed Continues To Push Ideas The Markets Don’t Care About
The Wall Street Journal – Yellen: Economy Still Needs Fed Aid The U.S. economy has grown “significantly stronger” since the 2008 financial crisis and ensuing recession, and but it still needs help from the Federal Reserve as it continues to mend, Janet Yellen will tell senators Thursday. Ms. Yellen, who has been nominated to be… Continue reading Yellen’s Confirmation Hearing
<Click on chart for larger image> Zero Hedge (Blog) – RBS: “The Fed Is Now Responsible For Monetizing A Record 70% Of All Net Bond Supply” The following statement and chart from the RBS’ Drew Brick pretty much explains it all: “QE has seen the Fed extend its dominion on the US curve away from… Continue reading Who Owns U.S. Treasuries?