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Is The Risk Rally Due To The Federal Reserve or Fundamentals?
May 16, 2013
Comment Today at 9 AM CT (10:00 AM ET, 7:00 AM PT, and 15:00 BST), Bianco Research, in conjunction with Arbor Research & Trading, will be hosting a webcast/teleconference moderated by Jim Bianco. As the stock market continues to move to new highs, Federal Reserve largesse has not yet led to a strong economy. Join… Continue reading Is The Risk Rally Due To The Federal Reserve or Fundamentals?
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Is This The Most Hated Rally In History?
May 16, 2013
Comment Starting about 1:30 into the video Jim Cramer said the following: Jim Cramer: i have to tell you. i know this is going to sound parochial and also boosterism. okay. yesterday it was David Tepper. okay? this is a man who is not afraid, who comes on squawk and basically lays out a case,… Continue reading Is This The Most Hated Rally In History?
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More On The CBO’s Revenue Windfall
May 16, 2013
Comment Yesterday Steve Liesman commented on the CBO’s revised deficit projections which reduced the estimated 2013 U.S. deficit by over $200 billion. At roughly the 2:30 mark, he mentions some skepticism regarding the sustainability of the increase in tax revenues. Not only did many wealthy people prepay taxes in 2012 to avoid tax hikes, but… Continue reading More On The CBO’s Revenue Windfall
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Sell In May And Go Away: The Bond Market Version
May 16, 2013
MoneyBeat (WSJ Blog) – ‘Sell in May and Go Away’ Is Working, Seriously The “Sell in May and go away” trade is alive, just not in the form people anticipated. The stock market is still kicking, but the bond market is showing serious signs of fatigue. As our Heard on the Street colleagues noted earlier… Continue reading Sell In May And Go Away: The Bond Market Version
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Gold’s Liquidation Continues
May 16, 2013
<Click on chart for larger image> CNBC – A ‘Tug of War’ That Puts a Floor Under Gold Just a month after gold suffered its biggest one-day drop in three decades, the precious metal has once again fallen victim to heavy selling pressure. But a tug of war between physical buyers and institutional sellers will… Continue reading Gold’s Liquidation Continues
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Judging FOMC Policy
May 16, 2013
Bloomberg.com – Caroline Baum: The Question the Fed Should Be Asking With next month marking the four-year anniversary of the end of the 2007-2009 recession, the longest and deepest since the Great Depression, it seemed like a good time to ask the same question — of the Federal Reserve. The Fed’s actions to right the… Continue reading Judging FOMC Policy
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Interpreting The Worldwide Pullback In Inflation
May 16, 2013
MarketWatch – Don’t be fooled by market euphoria A giant wave of disinflation is hitting the world. That might sound like a good thing, but signs suggest it’s a less-than-benign phenomenon. In this case, falling prices are driven more by recessionary forces than by any improvement in output. It’s a lack-of-demand problem, not a positive… Continue reading Interpreting The Worldwide Pullback In Inflation
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Europe’s Recession
May 16, 2013
The Wall Street Journal – Euro Crisis Mires Continent in Longest Slump Since War The euro-zone debt crisis has mutated into Europe’s longest slump of the postwar era, with no recovery in sight for a broad swath of the continent. Continuing government austerity, banks that can’t or won’t lend and heavy household debts are weighing… Continue reading Europe’s Recession
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A New Twist To Money Printing
May 16, 2013
The Wall Street Journal – Daniel J. Arbess: Bring on the ‘Helicopter Money’ The economic recovery remains sluggish and uneven. Stock-market investors are benefiting while most everyone else struggles with subpar economic growth, wage stagnation, tight credit and poor job prospects. And with the rest of Washington gridlocked, the Federal Reserve’s quantitative easing is the… Continue reading A New Twist To Money Printing
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Central Bank Credibility
May 16, 2013
ProPublica – Jesse Eisinger: The Fed’s Credibility Problem “What a lot of hedge fund managers are worried about is the inflation in asset prices, not cost and wages,” said James Chanos, a noted hedge fund manager who is left of center. “This is leading to recurring booms and busts, which in addition are exacerbating income… Continue reading Central Bank Credibility
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Those Who Cannot Remember The Past Are Condemned To Repeat It
May 16, 2013
Huffington Post – Credit Rating Agencies Loosening Standards Again, In Same Dynamic That Preceded Financial Crisis Citigroup had recently partnered with Deutsche Bank to lend $783 million to the owner of the Seagram Building, an architectural gem on Park Avenue in midtown Manhattan. Now, its bankers were in the process of turning that huge loan… Continue reading Those Who Cannot Remember The Past Are Condemned To Repeat It