<Click on chart for larger image> Comment Will Italy deliver? See the chart above. The continued rise towards 6% indicates the market does not believe so. The Financial Times- Pressure on Italy in eurozone struggle Germany and France have turned on Italy to demand further action to boost growth and reduce its huge debt, as… Continue reading Italy
The Telegraph (UK) – Banks and Europe clash over Greek debt deal Leading banks are at loggerheads with European leaders after lenders offered to accept losses of up to 40pc on their Greek debt holdings, a proposal seen as insufficient by politicians The offer – an increase on the banks’ previous proposal of a 21pc… Continue reading Greece
The New York Times – Bank’s Collapse in Europe Points to Global Risks As Europe’s debt crisis has deepened, a recurring question is how much risk it poses to the United States economy, and especially American banks. While American financial institutions have sought to limit any damage by reducing their loans and thus lowering their… Continue reading Dexia, Everybody Is Made Whole
The Financial Times – Commodities outflows hit $9.9bn in September Skittish investors withdrew $9.9bn from commodities last month, the largest outflow in years, amid growing concerns about the European debt crisis and China’s growth path. The estimate of outflows, released by Barclays Capital on Friday, revealed that even institutions with long-term allocation targets were unnerved.… Continue reading Commodities
TIME Magazine – Be Very Afraid of The China Bubble What’s the most important economic question in the world today? One contender is whether the euro will collapse. Another is whether the U.S. will plunge into a double-dip recession. But a third, and possibly the most important over the long term, is whether China can… Continue reading China, Is The Slowdown Story Now Fully Known?
<Click on image to watch video> Zero Hedge (blog) – Ray Dalio: “There Are No More Tools In The Tool Kit” – Complete Charlie Rose Transcript With The Head Of The World’s Biggest Hedge Fund When it comes to reading the world’s “tea leaves”, few are as capable as Ray Dalio, head of the world’s… Continue reading Is The Federal Reserve Out Of Tools?
The Wall Street Journal – So Much for the Volcker Rule Even in 298 pages, regulators can’t decide what to regulate If you tried to write a parody of the uncertainty and confusion triggered by federal rule-making, it would be hard to top the latest proposal from Washington’s financial regulators. So here’s an ironic hat… Continue reading Volcker Rule
The Financial Times – US Treasury considers new debt security The US Treasury and Wall Street dealers are set to discuss whether to introduce a new debt security to help finance the country’s mounting budget deficit in the coming years. Topping the agenda of a meeting on Friday between Treasury officials and dealers, who underwrite… Continue reading The U.S. Treasury Considers Floaters
<Click on chart for larger image> The Telegraph (UK) – Why is the oil price still so high? Four months ago, the world’s energy watchdog took historic action to reduce oil prices. Since then, the financial outlook has considerably worsened and some Libyan oil has returned to the market. But the price has remained above… Continue reading Crude Oil
<Click on chart for larger image> The Financial Times – Gillian Tett: Is there a shadowy plot behind gold? The idea of a central bank manipulating world markets packs an increasingly powerful emotional punch with voters Out there in the world today, a cabal of western central bankers is secretly determined to manipulate the world’s… Continue reading Gold Conspiracies
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Comment Yesterday we hosted a conference call titled The Economy and The Market. If you missed the call, here are links to the handout, audio, and webcast. Here is a summary of what was said: Market Correlations Continue At An All-Time High The correlation between individual stocks and the S&P 500 continues to make new… Continue reading The Economy and The Market