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Yet Another Attempt At Explaining What The Federal Reserve Said
June 26, 2013
The Wall Street Journal – David Wessel: A Hawkish Signal Bernanke Didn’t Send So what happens next? One potentially positive result: The Fed has flushed out some of financial excesses that were troubling some policy makers and has wiped out risky trades that counted on interest rates remaining very low forever. Perhaps the recent big… Continue reading Yet Another Attempt At Explaining What The Federal Reserve Said
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Home Prices Rise In April
June 26, 2013
<Click on chart for larger image> The Washington Post – Home prices, new home sales show big increases It was a sunny Tuesday morning for the housing market. Home values shot up yet again and new home sales rose, a week after the Federal Reserve’s statement about scaling back its massive bond-buying program sent markets… Continue reading Home Prices Rise In April
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Gold Continues To Fall, Gold ETF Liquidation Also Continues
June 26, 2013
<Click on chart for larger image> The Financial Times – Gold vunerable to further ETF selling The gold market looks set to remain under pressure with a slew of investment banks cutting their price forecasts after the spot price last week sank below the $1,300 an ounce mark, dropping below another psychologically important support level.… Continue reading Gold Continues To Fall, Gold ETF Liquidation Also Continues
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Bill Gross Speaks
June 26, 2013
Pimco.com – Bill Gross: The Fog That’s Yet to Lift Mr. Bernanke’s remarks indicated that the Fed is taking a cyclical view of the economy. He blamed lower growth on fiscal austerity, for example, suggesting that should it be removed from the equation the economy would suddenly be growing at 3%. He similarly attributed rising… Continue reading Bill Gross Speaks
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Financial Stress
June 26, 2013
CNBC – Financial Stress Index Hits Scary Level Instead of going into the details about how the index is composed, I’ll let you click through to the St. Louis Fed’s explanation here. The last three times that we’ve seen spikes like this were during the U.S. financial crisis of 2008, during the acceleration of the… Continue reading Financial Stress
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Keystone Pipeline
June 26, 2013
The Financial Times – Obama lays down conditions for Keystone pipe go-ahead But addressing the most pressing energy-related issue facing the US, Mr Obama said that the “net effects” of Keystone, which would carry oil from Canada’s tar sands to American refineries on the Gulf of Mexico, would be a key consideration in determining whether… Continue reading Keystone Pipeline
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Central Bank Balance Sheets And The Rise In Bond Yields
June 26, 2013
The Financial Times – Bond yields threaten recovery in global banks’ balance sheets The recovery in global banks’ balance sheets is under threat from a surge in bond yields, according to senior bank executives and analysts preparing for the quarterly earnings season. Banks have built giant portfolios of liquid securities, partly at the behest of… Continue reading Central Bank Balance Sheets And The Rise In Bond Yields
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The Federal Reserve Won’t Stop Inflating Bubbles
June 26, 2013
Yahoo Finance – Fed Won’t Reduce Bond-Buying, Will Continue Inflating Bubbles: Rickards Markets have been on a roller coaster ever since Fed Chairman Ben Bernanke dared to tell the world there was a potential timeline to start dialing back bond purchases beginning later this year. In the wake of the volatility, this week some Fed… Continue reading The Federal Reserve Won’t Stop Inflating Bubbles
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Italy Cooks Its Books
June 26, 2013
The Financial Times – Italy faces restructured derivatives hit Italy risks potential losses of billions of euros on derivatives contracts it restructured at the height of the eurozone crisis, according to a confidential report by the Rome Treasury that sheds more light on the financial tactics that enabled the debt-laden country to enter the euro… Continue reading Italy Cooks Its Books
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Junk Bonds
June 26, 2013
CNBC – Junk Bonds Suddenly Don’t Look So Good Anymore June has been a brutal month for bonds but particularly in the high-yield space, where issuance has cooled after a record run. Junk bond volume has slowed to $7.1 billion this month, the slowest pace since December 2011 and about one-fifth the average monthly total… Continue reading Junk Bonds
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Income Taxes
June 26, 2013
Zero Hedge – If H2 2013 Is So Full Of Growth Expectations, Then Why Is This Chart Dropping? While mass layoffs are hardly the stuff of dream recoveries, the following chart from Stone McCarthy may just clarify the un-recovery hopes this year a little more. Non-withheld individual income taxes were up sharply year-over-year in the… Continue reading Income Taxes