The Wall Street Journal – U.S. Economy Unexpectedly Contracts in Fourth Quarter U.S. economic momentum screeched to a halt in the final months of 2012, as businesses pared back inventories and government spending fell sharply, while lawmakers struggled to reach a deal on tax increases and budget cuts. The nation’s gross domestic product shrank for… Continue reading Market Capitalization As A Percentage Of GDP
<Click on chart for larger image> <Click on chart for larger image> <Click on chart for larger image> <Click on chart for larger image> CNN.com – The great ETF mega-war When it comes to stocks, ETFs have been dominating of late. The mutual fund industry has seen steady outflows from equity funds in the past… Continue reading An Updated Look At ETF Assets
<Click on chart for larger image> Bloomberg.com – Consumer Confidence in U.S. Falls to Lowest Level Since 2011 Confidence among U.S. consumers declined more than forecast in January, reaching the lowest level in more than a year as higher payroll taxes took a bigger bite out of Americans’ paychecks. The Conference Board’s index decreased to… Continue reading Consumer Confidence Falls
The Wall Street Journal – Jon Hilsenrath: Fed Risks Losses From Bonds The Federal Reserve could be charting a course that leaves the highly profitable central bank with no extra income to hand over to the U.S. Treasury for several years. That is the conclusion of five Fed staff economists who examined how the central… Continue reading Federal Reserve Policy
MarketWatch.com – Critical Warning No. 7: Banks crash economy again Commentary: Time to jail the bankers Drive-time radio. Ominous voice: “Critical Warning No. 6” again, “Something bigger than the credit crisis of 2008 is headed our way. For most people, it will hit them like a brick wall. It will touch Americans harder and deeper… Continue reading The Case Against U.S. Bankers
Huffington Post – Timothy Geithner Saved Wall Street, Not the Economy The accolades for Timothy Geithner came on so thick and heavy in the last week that it’s necessary for those of us in the reality-based community to bring the discussion back to earth. The basic facts of the matter are very straightforward. Timothy Geithner… Continue reading Geithner’s Role In Saving Wall Street
Reuters.com – Greek debt rally may fade as exit fears linger A powerful rally in Greek government bonds, which has seen prices surge four-fold since June, is running out of steam with investors still nervous the bailed-out country could be at risk of leaving the euro zone. Expectations – confirmed last week – that Greece… Continue reading Greek Debt
The Telegraph (UK) – Spain’s crisis strategy under fire as economy buckles again Spain’s economy has tipped into an accelerating downturn as sales data and the money supply flash serious warnings, calling into question Madrid’s high-risk strategy of refusing an EU-IMF rescue. Mr Rajoy on Tuesday unveiled a plan of “micro-policies” to revive growth, but… Continue reading Spain’s Economy Weakens
Zero Hedge – Hedging The Great Unwind – Second Highest Treasury Put Volume On Record Hits The Tape In early June 2007, Treasury futures saw their largest-ever put volume traded (821,978 contracts) and within a few days, Treasury yields had peaked at 5.32% and never looked back. Yesterday, according to CME data, Treasury futures put… Continue reading Treasury Put Volume
The Wall Street Journal – Euro Zone’s Risk in Currency Wars In the currency wars, being a noncombatant puts you squarely in the firing line. Take the euro: Tuesday, it hit a 14-month high against the dollar at just under $1.35. While the Federal Reserve and Bank of Japan are continuing to print money, leading… Continue reading Currency Wars
Forbes.com – How a New Housing Bubble Could Develop However, if someone is willing to buy the house from you then this offers you away to both extract your equity and get out of the mortgage contract. Thus, your neighbors’ willingness to buy a house lowers the cost to you of buying the house. So,… Continue reading A New Housing Bubble?
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