Comment In the video above The Wall Street Journal’s Jon Hilsenrath discusses monetary policy with CNBC’s Steve Liesman. Early in the interview CNBC’s Kelly Evans asks Hilsenrath if the Federal Reserve instructed him to write Friday’s article. Watch his nervous laughter and body language. In the process of avoiding the question he seems to have… Continue reading Hilsenrath Speaks
The Financial Times – IMF denounces US fiscal policy The International Monetary Fund denounced the tightening of US fiscal policy as “excessively rapid and ill-designed”, saying it will knock as much as 1.75 percentage points off growth this year. In its annual economic check-up on the US, the IMF forecast growth of just 1.9 per… Continue reading Rosy Economic Forecasts
Pimco – William H. Gross: Which way for bonds? Mapping a path forward Q: When do you expect the Fed to begin to take its foot off the QE pedal? Are rising rates a concern? Gross: The Federal Reserve has cited an unemployment rate of 6.5% as its threshold for pulling back on monetary policy.… Continue reading Q&A With Bill Gross
<Click on chart for larger image> The Wall Street Journal – Euro Becomes the Port in a Storm The euro is emerging as an unlikely oasis in the latest bout of market turmoil. Assets ranging from Japanese stocks to emerging-market bonds to U.S. Treasurys have slumped this spring, as investors brace for the possible pullback… Continue reading The Euro
The Telegraph – Ambrose Evans-Pritchard: Fitch says China credit bubble unprecedented in modern world history The agency said the scale of credit was so extreme that the country would find it very hard to grow its way out of the excesses as in past episodes, implying tougher times ahead. “The credit-driven growth model is clearly… Continue reading China’s Credit Bubble
Bloomberg.com – Central Banks’ Failure to Communicate Boosts Bond Yields What central banks may have the world over is a failure to communicate. Officials are struggling to spell out their visions for monetary policy, often amid a chorus of competing views. Chairman Ben S. Bernanke is trying to manage expectations about when the Federal Reserve… Continue reading What We Have Here Is Failure To Communicate
<Click on chart for larger image> <Click on chart for larger image> The Wall Street Journal – Fannie, Freddie Future Finds a Focus Congress is gearing up to tackle an issue that Washington has mostly ignored for nearly five years: What to do with Fannie Mae and Freddie Mac the bailed-out but now-profitable mortgage companies.… Continue reading Fannie & Freddie
<Click on chart for larger image> Bloomberg.com – Hedge Funds Cut Gold Bets as Paulson’s Loss Widens Hedge funds cut wagers on a gold rally for the first time in three weeks on mounting speculation central banks will curb record stimulus and as this year’s slump in bullion spurred losses for billionaire John Paulson…“There’s definitely… Continue reading Betting On Gold
Philosophical Economics – Is the “Equity Risk Premium” Elevated Right Now? No. If you’ve watched Hedge Fund Manager David Tepper cheerlead the market on CNBC, or if you’ve read the work of analyst Ed Yardeni, or if you pay attention to stock market discussions on Twitter or in the larger blogosphere, then you’ve probably heard… Continue reading The Equity Risk Premium
The Wall Street Journal – Fears of New Housing Bubble Full of Air The outbreak of bidding wars for center-hall colonials, split-levels and ranches all over America is more than a little reminiscent of the mid-2000s. Of course, that innocent era, before people understood that home prices can also fall, never had fixed-rate mortgage rates… Continue reading Some Perspective On Housing’s “Bubble”
Bloomberg Businessweek – End of Easing Spurs S&P 500 Gains of 16% as Economy Expands More than $500 billion wiped off the value of U.S. stocks is providing opportunities for investors who remember that equities tend to rise when the Federal Reserve begins reducing efforts to stimulate the economy. The Standard & Poor’s 500 Index,… Continue reading Past Performance Is Not Indicative Of Future Results
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