The New York Times – Floyd Norris: Housing, Ailing for Years, Starts to Recuperate But as can also be seen from the charts, the recovery has not propelled the housing industry far. The total level of starts is still lower than at any time before the recession, and in the fourth quarter of last year,… Continue reading Housing
The Telegraph (UK) – Cyprus crisis is at the heart of fundamental problems in the eurozone By the time you read this, the crisis in Cyprus could be over. On Sunday night the country’s President was in Brussels for meetings with senior EU leaders and eurozone finance ministers for last-ditch talks to secure €10bn (£8.5bn)… Continue reading The Fundamental Problem With Europe
The New York Times – There’s a Reason for Deposit Insurance FOR all the criticism of bailouts since the financial crisis struck, virtually no one has suggested that depositors in banks be made to suffer along with their investors, employees and customers. Until this week, when the euro zone proposed that, in return for a… Continue reading The Importance Of Deposit Insurance
The Wall Street Journal – Spain Brings the Pain to Bank Investors The Spanish government will impose heavy losses on investors at nationalized banks and hire external advisers to help it manage these banks’ assets, its latest efforts to overhaul a financial sector battered by the collapse of a decadelong housing boom. Forcing shareholders and… Continue reading Spain
<Click on chart for larger image> The Wall Street Journal – Crop Potential Softens Cotton Rally Cotton traders are pulling back from a recent rally, concerned that a U.S. government report slated for release this week will show that farmers are planning to plant more of the crop than has been expected this spring. Price… Continue reading Cotton
Bloomberg.com – Hedge Fund Manager Who Shorted Aviva Stock Now Bets on Bonds Sohail Malik, a hedge fund manager at ECM Asset Management Ltd., made 13.5 percent shorting Aviva Plc stock after correctly betting the firm would cut its dividend. Now he’s looking for returns in the insurer’s bonds. Malik, 39, who runs London-based ECM’s… Continue reading Your Rare Installment In Bond Market Love
The Wall Street Journal – Investors Finding New Calm in Crises Beyond Cyprus, plenty of other potential flash-points loom, from continued worries about the economic health of other European countries to the continuing deficit battles in Washington. Nevertheless, the shift toward less volatility underscores investors’ belief that the global economic recovery from the financial crisis… Continue reading Where Is The Volatility?
None Today
Comment Jim Grant was on CNBC yesterday and said the following (which we edited for readability): Maria Bartiromo: I think I know what you’re going to say about the call that the Fed has been making in terms of keeping this stimulus in place. Bad call, correct? You say it’s because of the Fed’s policies… Continue reading What FOMC Policy Accomplishes
CNBC.com – Are Markets Too Complacent Over Cyprus? Financial markets have held up relatively well this week in the face of financial turmoil in the tiny European island of Cyprus, prompting some analysts to warn that investors are too complacent about the potential fallout from the crisis. The European Union on Thursday gave Cyprus until… Continue reading Cyprus Update
Comment We commented on gold’s liquidation earlier this month. The cash price of gold bullion closed February 20 at $1,564, crashing below the psychologically important level of $1,600. This triggered a massive liquidation of gold from all known ETFs. Through yesterday, 4.6 million ounces have been sold since February 20th, shown in the first chart… Continue reading Gold Still Rallying Despite Retail Liquidation
Market Watch – Bond crash dead ahead: tick, tick … boom! ‘Investors have no idea what’s about to happen’ A warning: InvestmentNews wants to make damn sure its readers, the 90,000 professional financial advisers who rely on the timeliness and accuracy of every INews forecast, understand: “What will your clients’ portfolios look like when the… Continue reading Your Daily Installment In Bond Market Hate