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May 30, 2012
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<Click on chart for larger image> Factset – Earnings Insight, May 25, 2012 Analysts Begin To Take Down Q2 Estimates; Double-Digit Growth Still Projected for Q4 During the month of April, there was little change to the estimated earnings growth rate for the second quarter. On March 31, the estimated earnings growth rate for Q2… Continue reading Earnings Preview … Still Not Good
The Telegraph (UK) – Ambrose Evans-Pritchard: Spain runs out of money El Mundo reports that the country can no longer resist the bond markets as 10-year yields flirt with 6.5pc again, and the spread over Bunds – or `prima de riesgo’ — hits a fresh record each day. Premier Mariano Rajoy and his inner circle… Continue reading Is Spain Running Out Of Money?
<Click on chart for larger image> Bloomberg.com – Spanish-German Yield Spread Widens to Euro Record on Bank Funds Spanish bonds fell, pushing 10-year yields to the most relative to benchmark German bunds since the euro was created, amid concern the nation’s lenders will need additional financial support to weather Europe’s debt crisis. Spain’s two-year note… Continue reading Spain/Germany, Record Wide
<Click on chart for larger image> Bloomberg.com – Debt-Ceiling Deja Vu Could Sink Economy Sometime around the end of this year, the federal government will bump up against its $16.4 trillion borrowing limit, as a direct result of spending and tax laws enacted by Congress. To raise the limit, legislators must pass a separate law.… Continue reading Debt Ceiling Update
The Wall Street Journal – George Melloan: Seeing Is Not Believing at Today’s Fed Glasnost has destroyed the central bank’s mystique. Traders and investors can now peek inside the kitchen and notice the guesswork. Federal Reserve Chairman Ben Bernanke’s new policy of openness has much to recommend it, in that it gives the markets information… Continue reading Does The Federal Reserve Have Any More Secrets?
Bloomberg.com – Euro Rises as Greek Pro-Bailout Party Leads Opinion Polls The euro rose against the dollar from the weakest level since July 2010 as polls showed Greece’s pro- bailout parties gaining ground, easing concern the nation will exit the currency bloc. … Greece’s New Democracy party, which supports the plan negotiated by the government… Continue reading Greek Polling, Moving Right?
Reuters – European Firms Plan for Greek Unrest and Euro Exit British electrical retailer Dixons has spent the last few weeks stockpiling security shutters to protect its nearly 100 stores across Greece in case of riot. The planning, says Dixons chief Sebastian James, may look alarmist but it’s good to be prepared. Company bosses around… Continue reading Is The Euro Ending?
Project Syndicate – Joschka Fischer: The Threat of German Amnesia Let’s not delude ourselves: if the euro falls apart, so will the European Union (the world’s largest economy), triggering a global economic crisis on a scale that most people alive today have never experienced. Europe is on the edge of an abyss, and will surely… Continue reading If The Euro Breaks Up, Does The EU Survive?
Reuters – JPMorgan dips into cookie jar to offset “London Whale” losses JPMorgan Chase & Co has sold an estimated $25 billion of profitable securities in an effort to prop up earnings after suffering trading losses tied to the bank’s now-infamous “London Whale,” compounding the cost of those trades. CEO Jamie Dimon earlier this month… Continue reading How JP Morgan Hides Its Losses
Dr. Housing Bubble – The politics of the underwater homeowner – the impact of negative equity on the balance sheet of Americans. Top 5 markets to purchase foreclosures. A recent report shows that 1 out of 3 Americans with a mortgage is still underwater owing $1.2 trillion more on their home than it is currently… Continue reading Underwater Homes
Reuters – Will the Euro Misery Give Rise to Another Soros? Two decades ago, George Soros rose to fame and fortune on his now-historic trade in which he took on the Bank of England and shrewdly wagered on a devaluation of the British pound. But it’s unlikely the current European monetary crisis and worries about… Continue reading The Next Soros