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The Fiscal Cliff
November 20, 2012
Comment Jim Bianco was on Bloomberg TV yesterday discussing the fiscal cliff. To view the interview click on the image above. To view any of our recent interviews click here. The Wall Street Journal – Markets Still Fear a Steep Fall Off Cliff Before Democratic and Republican honchos disappear behind close doors to play “deal… Continue reading The Fiscal Cliff
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The Debt Ceiling
November 20, 2012
<Click on chart for larger image> CNS News – Treasury Secretary Geithner: Lift Debt Limit to Infinity Treasury Secretary Timothy Geithner said Friday that Congress should stop placing legal limits on the amount of money the government can borrow and effectively lift the debt limit to infinity. On Bloomberg TV, “Political Capital” host Al Hunt… Continue reading The Debt Ceiling
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An Updated Look At Earnings
November 20, 2012
MarketWatch – Multiyear earnings win streak likely to end With less than 5% of the S&P 500 Index left to report earnings, the third quarter is looking more and more like the end of the road for nearly three years of earnings growth. As September drew to a close, analysts were expecting a rough earnings… Continue reading An Updated Look At Earnings
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Rethinking Monetary Policy
November 20, 2012
Real Time Economics (WSJ Blog) – Higher Rates Would Boost Growth, Paper Argues The Federal Reserve believes aggressively easy monetary policy is the key to lowering unemployment. A new paper argues increasing rates may be the only thing that can get the economy moving again. The research, written by Columbia University‘s Stephanie Schmitt-Grohe and Martin… Continue reading Rethinking Monetary Policy
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France Stripped Of Its Aaa Rating
November 20, 2012
The Wall Street Journal – France Loses Another Top Rating Moody’s Investors Service stripped France of its triple-A rating Monday, following in the footsteps of Standard & Poor’s Ratings Services, and delivering a stinging critique of President François Hollande’s attempts to turn the economy around amid the euro-zone crisis. The ratings firm said the main… Continue reading France Stripped Of Its Aaa Rating
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High Frequency Traders Feast On Currency Markets
November 20, 2012
MarketBeat (WSJ Blog) – High-Frequency Traders Getting a Free Lunch in FX There’s still “free lunch” in foreign exchange, but algorithmic traders are increasingly eating it faster than the rest of the market. A new study published by the National Bureau of Economic Research has found that, despite the global currency market’s massive size and… Continue reading High Frequency Traders Feast On Currency Markets
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U.K. Pensions Prefer Bonds To Stocks
November 20, 2012
The Financial Times – Bonds switch signals end of cult of equity It is a once in a generation moment. For the first time in more than 50 years UK pension funds are holding more bonds than equities. Some fund managers have called it the death of the “cult of equity” and say it is… Continue reading U.K. Pensions Prefer Bonds To Stocks
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Winding Down The GSEs
November 20, 2012
The Wall Street Journal – Vern McKinley: The Fannie Mae ‘Wind Down’ That Isn’t At the height of the presidential election campaign, the Treasury Department issued a press release called “Further Steps to Expedite Wind Down of Fannie Mae and Freddie Mac.” It highlighted a new policy to scale back the pair’s mortgage-investment portfolio at… Continue reading Winding Down The GSEs
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The FHA Needs A Bailout
November 20, 2012
The Wall Street Journal – The Latest Taxpayer Housing Bust Vindication is overrated, especially in a losing cause, so it brings no satisfaction to have predicted that the Federal Housing Administration would sooner or later threaten taxpayers. That day has arrived. Safely past the election, the feds announced Friday that the FHA’s liabilities exceed its… Continue reading The FHA Needs A Bailout
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Sex Sells JGBs
November 20, 2012
Bloomberg.com – Women Prefer Men Holding State Bonds, Japan Ad Says Japanese women are seeking men who invest in government bonds, according to an advertisement being run by the Ministry of Finance. “I want my future husband to be diligent about money,” a 27-year-old woman says in an ad being run in free magazines promoting… Continue reading Sex Sells JGBs