The Economist – The economy: No miracle cure Bucking up this recovery is harder than it was in the past Growth has clearly been tepid. The American economy managed just 1.5% annualised GDP growth in the second quarter, down from 2% growth at the start of the year. Hiring is merely creeping along. On August… Continue reading Measuring The Recovery
The Economist – High-frequency trading: Wait a second The latest cock-up on Wall Street shows that more safeguards are needed The Knight glitch was just the latest in a series of cock-ups that have been linked to computerised trading. The most serious of these was the “flash crash” of May 2010, when the Dow Jones… Continue reading More on HFT
<Click on graphic for larger image> The Wall Street Journal – Bad Weather Pushes Up Food Prices A rash of bad weather—from a drought in the U.S. to a hot summer in Russia to excessive rain in Brazil—is straining the global food chain and pushing up prices around the world. The United Nations Food and… Continue reading Soaring Food Prices
<Click on graphic for larger image> The Economist – The euro: Tempted, Angela? A controlled break-up of the euro would be hugely risky and expensive. So is waiting for a solution to turn up FOR all you know, Angela Merkel is even now contemplating how to break up the euro. Surely Germany’s long-suffering chancellor must… Continue reading Break Up The Euro?
Bloomberg.com – Analysis: Five years on, central banks not yet out of options Five years into the great financial crisis, central banks are still pushing back the boundaries of monetary policy only to encounter constant reminders of the limits of their power to revive growth. The Bank of England’s provision of cheap loans to fund… Continue reading Central Banking
Bloomberg.com – El-Erian Says Be Wary of Steepening Yield Curve: Tom Keene Investors should be wary of a steepening yield curve in the U.S. Treasury market, according to Pacific Investment Management Co.’s Mohamed El-Erian. While yields on government securities due in eight years and less are anchored by Federal Reserve monetary policy, bond buyers should… Continue reading The Yield Curve
<Click on chart for larger image> The Wall Street Journal – Some Good News for Jobs: Claims Moving in the Right Direction Weekly jobless claims offer another relatively upbeat sign that the job market is gaining some momentum. Initial claims fell by 6,000 to 361,000 in the week ended Aug. 4, according to the Labor… Continue reading Initial Claims Seasonal Adjustments
The Wall Street Journal – U.S. Not Seeking Goldman Charges After a yearlong investigation, the Justice Department said Thursday that it won’t bring charges against Goldman Sachs Group Inc. GS +1.06%or any of its employees for financial fraud related to the mortgage crisis. In a statement, the Justice Department said “the burden of proof” couldn’t… Continue reading No One Goes To Jail
Today at 9 AM CT (10:00 AM ET, 7:00 AM PT, and 15:00 BST), Bianco Research, in conjunction with Arbor Research & Trading, will be hosting a webcast/teleconference moderated by Jim Bianco. Join us today as we discuss the economy and monetary policy as the election draws near as well as Europe’s debt problems in… Continue reading Outlook Through The Election
Comment Jim Bianco was on CNBC yesterday morning discussing the Federal Reserve. To view the interview click on the image above. To view any of our recent interviews click here.
CNBC – The Most Hated Stock Rally in History? Could this be the most hated stock market rally in history? Not only do traders not like the market, the average public doesn’t believe the stock market is rallying. Yet it is. The S&P 500 Index is up 12.9 percent, one of the best year-to-date performances… Continue reading Everybody Hates Stocks?