<Click on chart larger image> ANSA (Italy) – Berlusconi says his coalition has taken the lead Ex-premier Silvio Berlusconi said on Monday that he was sure his center-right coalition was now leading their opponents, the center-left Democratic Party (PD), in the polls for the upcoming elections. “I believe that we have overtaken them…they are now… Continue reading How Do You Spell “Bear Market” In Italian?
The Financial Times – Mohamed El-Erian: The conundrum for the world’s central bankers A simple observation last week by the Bank of England’s Monetary Policy Committee speaks volumes to the historic evolution of modern central banking – a process that is consequential, unprecedented and inadequately covered in traditional “money and banking” texts. In its February… Continue reading What Should Central Banks Do?
The Financial Times – Borrow longer on low rates, Treasury told Even a 50-year security has been proposed to lock in low costs “Neither a borrower nor a lender be”, may have been sound advice when originally expressed by Polonius in Hamlet. But when borrowing costs are at their lowest in decades, why not take… Continue reading 50-Year Treasuries?
CNN/Money – Fed official: Fixing the job market could take years Healing the job market should take “center stage” on the Federal Reserve’s agenda, but that task could still take years, a high-ranking member of the central bank said Monday. Janet Yellen, who as vice chairwoman of the Federal Reserve Board is number two in… Continue reading Fixing The Jobs Market
Bloomberg.com – G-7 Won’t Target Exchange Rates Amid Currency War Concern The world’s major industrial nations sought to soothe mounting fears of a currency war with a pledge to avoid devaluing their exchange rates in the pursuit of stronger economic growth. “We reaffirm that our fiscal and monetary policies have been and will remain oriented… Continue reading There Is No Currency War … Now Go Devalue
<Click on chart for larger image> Zero Hedge – Households On Foodstamps Rise To New Record While hardly presented by the mainstream media with the same panache dedicated to the monthly ARIMA-X-12 seasonally-adjusted, climate-affected, goal-seek devised non-farm payroll data, the three month delayed Foodstamp number is according to many a far greater attestation to the… Continue reading Food Stamps Outpace Job Creation
The New York Times – James B. Stewart: Following a Herd of Bulls on Apple While investment banking conflicts have been addressed, “the most obvious conflict now is that research is funded through the trading desks,” Professor Gilson said. “If you’re an analyst and one way your report brings in revenue is through increased trading,… Continue reading How Wall Street Analysis Works
FT Alphaville – This is not 1994 Dario Perkins at Lombard Street Research has a great little note out on Tuesday arguing why it’s absolutely wrong to assume the current bond sell-off is in any shape or form a repeat of 1994. Comment We agree with this assessment.
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The Financial Times – A credit vigilante arrives at the Fed Professor Jeremy Stein is a much respected financial economist from Harvard who in May became a member of the board of governors at the Federal Reserve. Until last week, the markets had paid him relatively little attention, but that is now destined to change.… Continue reading The FOMC’s Exit Strategy
<Click on chart for larger image> The Wall Street Journal – Treasurys, Yen Part Ways For years, the rule was simple: Whatever direction the Japanese yen took, so, too, would U.S. Treasurys. Now, investors need a new rule book. The two markets, each regarded as safe havens by global investors, have traveled hand in hand… Continue reading The Yen Takes On A Life Of Its Own
The Wall Street Journal – Too Much Cheering Over Stocks Investors looking at the very same news about the behavior of mutual-fund investors are drawing starkly different conclusions about the attractiveness of stocks at the moment. Both groups are operating under some fishy assumptions. First, the data: TrimTabs Investment Research estimated that more money was… Continue reading Stock vs. Bond Fund Inflows