Reuters.com – Insight: Money fled Cyprus as president fumbled bailout As new President Nicos Anastasiades hesitated over an EU bailout that has wrecked Cyprus’s offshore financial haven status, money was oozing out of his country’s closed banks. In banknotes at cash machines and exceptional transfers for “humanitarian supplies”, large amounts of euros fled the east… Continue reading More On Cyprus
The Big Picture (blog) – Too Many Expecting a Correction Investors Intelligence (II) sentiment data shows 34% of newsletter writers are expecting a correction. The prior two corrections occurred with this level at 34.7% and 35.1% respectively. Bartels adds that “newsletter writers need to capitulate and remove their calls for a market correction in order… Continue reading Is A Stock Market Rally Coming?
The Telegraph (UK) – Sir Mervyn King: global crisis ‘far from over’ The global crisis is “far from over” and countries can expect several “twists and turns” before the economy fully recovers, the Governor of the Bank of England has warned. “Whichever crisis we are talking about it is far from over,” Sir Mervyn told… Continue reading Europe’s Crisis Is Not Over
The Wall Street Journal – Mortimer Zuckerman: The Great Recession Has Been Followed by the Grand Illusion Don’t be fooled by the latest jobs numbers. The unemployment situation in the U.S. is still dire. The Great Recession is an apt name for America’s current stagnation, but the present phase might also be called the Grand… Continue reading Welcome To The Grand Illusion
Dow Jones – BOJ Gov Kuroda: Worth Discussing Buying Longer-Term JGBs Over 5 Yrs The Bank of Japan’s governor said on Tuesday that buying five-year or longer-term government securities is one option for the central bank in easing monetary policy, providing a fresh hint on what policy changes the BOJ may adopt under his leadership.… Continue reading The Bank of Japan
The Wall Street Journal – Seth Lipsky: A Commission for the Fed’s Next 100 Years The central bank’s centennial offers a valuable opportunity to rethink its mandate. The Centennial Monetary Commission would start with a formal review of the Fed’s performance across the decades, including how its policies have affected the economy in terms of… Continue reading The Next 100 Years Of The Federal Reserve
Real Time Economics (WSJ Blog) – 10 Takeaways From Speech by Fed’s Dudley 1. The “fundamentals underpinning the U.S. economy are improving.” Household debt has come down. The housing retrenchment in is nearly done. The rest of the world, despite Cyprus, is improving. Corporate profits are high. U.S. energy revolution will have long-lived benefits. The… Continue reading FedSpeak
Bloomberg Businessweek – Cyprus Said to Reach Tentative Deal to Avert Default Cyprus agreed to the outlines of an international bailout, paving the way for 10 billion euros ($13 billion) of emergency loans and eliminating the threat of default. The accord between Cyprus and the “troika” representing international lenders was reached in overnight talks in… Continue reading Cyprus Gets A Bailout
<Click on chart for larger image> CNBC – Investors May Hate Bonds, but They Keep on Buying They are the investment everyone suddenly hates to love, but those bonds that were supposed to collapse this year continue to attract billions in investor money. For many Wall Street strategists 2013 was expected to be the year… Continue reading The Non-Existent “Great Rotation”
The Wall Street Journal – Bernanke’s World War II Monetary Regime The Fed’s real goal in keeping interest rates low is to finance government debt and deficits. When a government spends beyond its means, the options for paying for the spree are unattractive. It can burden the populace with higher taxes, or it can wipe… Continue reading Bernanke
<Click on chart for larger image> The Financial Post (Canada) – David Rosenberg: Market rally a result of Fed smoke and mirrors Meanwhile, our work shows the Fed has had much to do with it. While there has been no escape velocity within the real economy, that 87% correlation with the central bank balance sheet… Continue reading Supporting The Stock Market