Forbes – The Fannie And Freddie Penny Stock Boom Collapses How could mixing an over-the-counter bulletin board penny stock boom with Fannie Mae and fast-paced traders ever go wrong? During the month of May shares of Fannie Mae and Freddie Mac have soared into the stratosphere as hedge funds and other speculative investors jumped into… Continue reading Fannie & Freddie’s Wild Ride
<Click on chart for larger image> The Wall Street Journal – Tokyo Shares Down Sharply Tokyo stocks fell sharply again Thursday, bringing the Nikkei Stock Average’s one-week drop to 14.7% and calling the “Abenomics”-inspired rally into question. The Nikkei fell 5.2%, putting it decisively in a correction just a week after reaching a 5 ½-year… Continue reading Another Volatile Day In Japan
MoneyBeat (WSJ Blog) – Wall Street’s One-Night Stands; Someone Could Get Hurt in Repo Market A study on repo markets published in 2009 by Gary B. Gorton and Andrew Metrick of the National Bureau of Economic Research concluded that “ultimately it was the loss of liquidity at the firms that were the biggest players in… Continue reading The Repo Market
MarketWatch – Pimco’s Gross says ‘Bernanke has a lost a little control’ Bill Gross, Pimco’s co-chief investment officer, says that we are entering a new phase of the correlation between stocks and bonds as central banks ease up their reign on the global capital markets. In an interview on CNBC Wednesday, Gross recounted the history… Continue reading Bill Gross Speaks On The Stock/Bond Relationship
Real Time Economics (WSJ Blog) – Fed’s Rosengren Open to ‘Modest’ Cut in Bond Buys in a ‘Few’ Months A Federal Reserve official who has strongly supported the central bank’s bond-buying stimulus efforts is willing to see the purchases pared back sometime soon if the economy continues to recover at its current pace. “It may… Continue reading Fedspeak
The Wall Street Journal – Europe Trades Austerity for Reform The new European deal is clear: The European Commission has agreed to delay budget-deficit targets for some euro-zone countries, but in exchange is stepping up the pressure on structural reform. With the euro-zone economy mired in recession and governments arguing that austerity is becoming politically… Continue reading Europe
<Click on chart for larger image> MoneyBeat (WSJ Blog) – Gold Hits 8-Day High as Insecurity Grows The price of gold hit an eight-day high Thursday, boosted by a newfound enthusiasm for the metal as a hedge against wider market insecurity as investors wonder if, and when, the U.S. Federal Reserve might at last begin… Continue reading Gold
The Wall Street Journal – The U.S. Economy: Doing Better, Can It Last? The U.S. economy is still not good. Unemployment is at 7.5%, and would be higher if so many people hadn’t dropped out of the labor force. Wages for many who do have jobs are stagnating. But the economy is gradually getting better.… Continue reading Grading The Economy
MoneyBeat (WSJ Blog) – Credit Cold = ETF Pneumonia Corporate bond exchange-traded funds attracted investors in record numbers during the credit bull run of the past three years. They also attracted criticism for trading with more volatility than the bond markets they were designed to track. With the selloff in Treasury bonds rattling credit markets,… Continue reading ETFs Run Into Liquidity Problems
<Click on picture to play game> MoneyBeat (WSJ Blog) – Take on the Economic Challenge. Play the Federator We know plenty of readers of this blog think they could do a better job managing the U.S. economy than Fed Chairman Ben Bernanke. Well, now’s their chance — almost. Introducing … The Federator, The Wall Street… Continue reading So You Think You Can Do Bernanke’s Job?
Charts of the Week Topics Covered This Week Include: Why Are Treasuries Tanking? Why Are Treasuries Tanking? – 2 QE’s Effect On The Repo Market QE’s Effect On The Repo Market -2 Mutual Fund Flows Ben Bernanke, The Nation’s Chief Investment Strategist Stock Buybacks Boosting EPS (But Not Net Income) Home Prices Rise Home Prices… Continue reading Charts of the Week