The Financial Times – Japan buyers go abroad in search of yield Bond investors in the eurozone and US are betting they have a powerful new ally: yield-starved Japanese buyers. With the Bank of Japan fully embracing quantitative easing and seeking to expand its monetary base aggressively, US and eurozone bond markets have received a… Continue reading Searching For Yield
CNN Money – Volcker: Central banks are too aggressive Former Federal Reserve chairman Paul Volcker warned Monday about potential dangers from what he calls “unorthodox” and aggressive moves by central banks around the world. Central banks, including the Fed, could eventually inflict more harm by “what they’re doing with their portfolio to save the world… Continue reading Volcker Believes Central Banks Are Doing Too Much
The Wall Street Journal – Easy Money: Fed Policies Spur Corporate Spending In fact, many of the firms Kelser is looking at as possible acquisition targets can’t get the financing or credit facilities they want, he says. “The market is very strange: They’re lending easier, but it’s still restrictive on who they lend to. They’re… Continue reading Easy Money
<Click on chart for larger image> The Financial Times – Chinese inflation slows sharply in March Chinese inflation slowed sharply in March as food prices fell after the country’s new year holiday and the central bank drained cash from the economy. Consumer prices rose 2.1 per cent in March from a year earlier, below expectations… Continue reading Inflation Slows In China
The Telegraph (UK) – Portugal austerity plan frays, US loses patience with Europe The ratings agency said the shock decision has exposed the “institutional limits” faced by Portugal’s leaders as they try to meet EU-IMF demands for retrenchment. “The ruling could be interpreted as saying that all public spending cuts that affect civil servants are… Continue reading Portugal
Bloomberg Businessweek – Fannie and Freddie Could Fund the Government Everyone agrees that Congress must find a way to wind down Fannie Mae and Freddie Mac, the failed mortgage giants. For the moment, though, some in Washington may be happy they’re not gone yet. Thanks to the economic recovery and the housing rebound, Fannie and… Continue reading What Goes Around Comes Around
Bloomberg.com – Trust in Gold Not Bernanke as U.S. States Promote Bullion Distrust of the Federal Reserve and concern that U.S. dollars may become worthless are fueling a push in more than a dozen states to recognize gold and silver coins as legal tender. Arizona is poised to follow Utah, which authorized bullion for currency… Continue reading Returning To The Gold Standard
Comment Jim Bianco was on CNBC Friday discussing the payroll report. To view the interview click on the image above. To view any of our recent interviews click here. CNBC – Forever Fed: Jobs Blues Sets Up Eternal Easing Questions had arisen over Federal Reserve intentions in recent days as some members worried about effects… Continue reading The Federal Reserve & The Jobs Market
The Wall Street Journal – Workers Stuck in Disability Stunt Economic Recovery The unexpectedly large number of American workers who piled into the Social Security Administration’s disability program during the recession and its aftermath threatens to cost the economy tens of billions a year in lost wages and diminished tax revenues. Signs of the problem… Continue reading Disability Checks On The Rise
<Click on chart for larger image> Business Insider – The Difference In Unemployment Between People Who Graduated From College And Those Who Didn’t Is Gigantic There’s a lot of debate about the job and economic prospects for the current generation of college graduates. The fact that student debt has ballooned so much only exacerbates the… Continue reading Jobs By Demographic
The Financial Times – Portugal faces fresh cuts to spending Portugal’s prime minister says the government will have to cut spending on health, education and social security to keep the country’s €78bn bailout programme on track. Pedro Passos Coelho made a televised address on Sunday after the constitutional court rejected austerity measures considered essential to… Continue reading Portugal’s Court System Throws Wrench In Bailout Plans