CNN Money – El-Erian: What the markets are trying to tell us Volatility is on the rise, liquidity is getting tougher in certain places, and anxiety is on the rise. Those trading in many market segments would have noticed a subtle change last week: Volatility is on the rise, liquidity is getting tougher in certain… Continue reading Market Anxiety On The Rise
Bloomberg Businessweek – Bernanke Economy Set for Near Decade-High GDP in Fed Centennial While the 59-year-old Bernanke hasn’t said whether he wants to remain as Fed chief when his current term expires in January, a majority of investors believe he will depart, according to the latest Bloomberg Global Poll. A third of those surveyed expect… Continue reading The Bernanke Economy And Growth
The Telegraph – You thought central bank money printing was at an end? Don’t bet on it Is the great bond market bubble finally over? For the following, very simple, reason, I’m not yet convinced. The world economy is still in a very deep hole, with major structural imbalances still largely unaddressed. Any attempt to… Continue reading Hooked On Easy Money
The New York Times – Behind the Rise in House Prices, Wall Street Buyers The last time the housing market was this hot in Phoenix and Las Vegas, the buyers pushing up prices were mostly small time. Nowadays, they are big time — Wall Street big. Large investment firms have spent billions of dollars over… Continue reading Wall Street Invests In Housing
Bloomberg.com – Senators Near Plan to Unwind Fannie Mae, Cut U.S. Role A bipartisan group of U.S. senators is putting the final touches on a plan to liquidate Fannie Mae and Freddie Mac (FMCC) and replace them with a government reinsurer of mortgage securities behind private capital. The proposed legislation, which could be introduced this… Continue reading GSE Privatization
Pimco.com – Bill Gross: Wounded Heart Well, there is my still incomplete thesis which when summed up would be this: Low yields, low carry, future low expected returns have increasingly negative effects on the real economy. Granted, Chairman Bernanke has frequently admitted as much but cites the hopeful conclusion that once real growth has been… Continue reading Bill Gross Speaks
The Financial Times – EM assets lose favour on fears of slowing Fed QE Nowhere did recent hints that the US Federal Reserve could cut back its bond-buying in the near future reverberate as loudly as in emerging markets. Although the bond and stock markets of developing countries have rallied over the past decade on… Continue reading Emerging Markets Are Losing Their Flair
The Wall Street Journal – Hindenburg Omen Creator: ‘I’m Hunkering Down for Possible Rough Ride’ The man behind the “Hindenburg Omen” said he’s prepping to bail out of the stock market after his ominous-sounding technical indicator was tripped last week for the second time in two months. In a chat with MoneyBeat Sunday evening, Jim… Continue reading The Hindenburg Omen
The Financial Times – Fed ‘tapering’ fears push up US mortgage rates The average rate on a US mortgage has soared above 4 per cent for the first time in more than a year, reflecting recent turmoil in the bond market and threatening to undermine the Federal Reserve’s efforts to stoke the US recovery. The… Continue reading Rising Mortgage Rates
The Financial Times – ECB backs away from use of ‘big bazooka’ to boost credit The European Central Bank is backing away from any “big bazooka” style intervention to revive lending within the eurozone, delivering a blow to some market hopes of ambitious action. Small and medium sized businesses that form the backbone of the… Continue reading Reviving Lending In Europe
CNN Money – Jamie Dimon’s $5 billion bet against bonds Interest rates have been rising lately. And a lot of people are nervous about what will happen when the Federal Reserve stops buying bonds in the next year or so. Warren Buffett is watching. One group of people not among the rate worrywarts: Bank CEOs.… Continue reading More Bond Hate