<Click on chart for larger image> Bloomberg.com – Corn Prices Rise Worldwide Due to U.S. Ethanol Policy, FAO Says The use of corn to make ethanol in the U.S. is helping to lift the grain price worldwide, said Jose Graziano da Silva, the new director general of the United Nations’ Food and Agriculture Organization. “FAO… Continue reading Commodity Prices
<Click on chart for larger image> Barron’s – BERNIE SCHAEFFER: The Volatility Illusion Investors and pundits are greatly overstating the extent of market gyrations. Why that bodes well for U.S. stocks Have we been experiencing “extraordinary tumult” and “startling volatility” in the U.S. stock market? Or is this just the lens through which the crowd… Continue reading Volatility
The Washington Post – James Grant: How austerity cured a depression Well, how did the nation ever climb out of the deflationary abyss? By the age-old magnetic power of high interest rates and low investment values. Foreigners sent their gold to America to seize the bargains before they vanished — and up went the prices… Continue reading Does Austerity Work?
The New York Times – James B. Stewart: The Dawn of Lower Pay on Wall St. The day of reckoning may be at hand. his week, the venerable investment bank Morgan Stanley stunned a generation of Wall Street bankers and traders by announcing that it was capping cash bonuses for 2011 at $125,000. Its top… Continue reading Wall Street Pay
<Click on chart for larger image> The New York Times – Steven Rattner: The Dangerous Notion That Debt Doesn’t Matter WITH little fanfare, a dangerous notion has taken hold in progressive policy circles: that the amount of money borrowed by the federal government from Americans to finance its mammoth deficits doesn’t matter. Debt doesn’t matter?… Continue reading Does Debt Matter?
<Click on chart for larger image> <Click on chart for larger image> Barron’s – Michael Santoli: The Dangers of Complacency Investors might be getting a little too comfortable with the rally that has pushed up stocks by 4.6% already this year For the stock market, 2012 certainly has come in like a lamb. The major… Continue reading Too Much Stock Market Complacency?
None Today
Comment Yesterday Jim Bianco was on Bloomberg Asia talking about earnings season, stocks and investment strategy. To view the interview click on the image above. To view any of our recent interviews click here. Early earnings returns are not good (as we warned might happen earlier this month). As the table below shows, only 61%… Continue reading Earnings Are Disappointing So Far
Comment Tomorrow is the South Carolina primary. A few days ago Romney looked like a virtual lock to win. Then, earlier this week, Gingrich had a good debate and things have dramatically turned around. The charts below show the Intrade betting for South Carolina (which are updated real-time in the right-hand column) and show that… Continue reading Is Romney In Trouble?
<Click on graphic for larger image> The Wall Street Journal – Jon Hilsenrath: Fed Holds Off for Now on Bond Buys Federal Reserve officials are waiting to see how the economy performs before deciding whether to launch another bond-buying program. The Fed meets again next Tuesday and Wednesday, and officials are preparing to roll out… Continue reading Differing Views About QE3
<Click on chart for larger image> Bloomberg.com – Four-Year Low in U.S. Jobless Claims May Bolster Spending in 2012: Economy Claims for jobless benefits last week dropped to the lowest level in almost four years, pointing to an improvement in the U.S. job market that may help bolster spending in the new year. Applications for… Continue reading Interpreting Initial Claims
Comment At last month’s FOMC meeting the Federal Reserve approved the following: Monetary Policy Communications After the Committee’s vote, participants turned to a further consideration of ways in which the Committee might enhance the clarity and transparency of its public communications. The subcommittee on communications recommended an approach for incorporating information about participants’ projections of… Continue reading The Fed’s New Transparency, Will The Market Get It Wrong (Again)?