<Click on chart for larger image> The Wall Street Journal – Stock Surge Has Its Skeptics Investors might want to keep their seat belts buckled for a little while longer. Since the beginning of October, stocks, commodities, the euro and other assets that benefit in good times have staged a blistering rally, reversing some of… Continue reading The Recent “Rally” In Stocks
<Click on chart for larger image> Bloomberg.com – ‘Tread Lightly in Stocks’ as TED Spread Widens: Chart of the Day Investors ought to “tread lightly in stocks” because credit markets have yet to show the kind of optimism that lifted share prices this month, according to Gina Martin Adams, a Wells Fargo & Co. strategist.… Continue reading TED Spread Begins To Widen
The Federal Reserve: Ben Bernanke: The Effects of the Great Recession on Central Bank Doctrine and Practice The financial crisis of 2008 and 2009 will leave a lasting imprint on the theory and practice of central banking. With respect to monetary policy, the basic principles of flexible inflation targeting–the commitment to a medium-term inflation objective,… Continue reading Bernanke Speaks
<Click on chart for larger image> Business Insider – AND NOW THIS: Moody’s Downgrades Spain By Two Notches Moody’s Investors Service just cut Spain’s government bond ratings by two levels to A1, with a negative outlook. This follows Moody’s decision to downgrade Italy and put Belgium on review, actions it attributes to much the same… Continue reading Moody’s Downgrades Spain, France Could Be Next
The Wall Street Journal – U.S. Economy Trapped by Its Circle of Strife Bursts of enthusiasm aren’t uncommon in bear markets. But they should be watched with caution. Consider Japan. Just when the nation’s stock market finally seemed to have stabilized, in the fall of 1991, another downdraft began. The Nikkei 225 index, already down… Continue reading The Trouble With The U.S. Economy
The LA Times – Number of Californians entering foreclosure jumps in third quarter A big August surge in foreclosure actions by Bank of America and Bank of New York sent the number of California homeowners entering foreclosure to levels not seen in a year. The third-quarter jump in notices of default, the first formal step… Continue reading Foreclosures Rise In California … Again
MarketWatch.com – A recipe for stock market volatility Fasten your seat belts: The stock market is unlikely to calm down any time soon. On the contrary, we’re likely to see more of the same kind of volatility that has characterized the markets in recent months — such as seen this week by Monday’s loss of… Continue reading Volatility In The Stock Market
None Today
The table below shows the results of Bloomberg’s survey of economists. It details economists’ expectations for 10-year Treasury yields over the next six months. For those familiar with this survey, we use the quarter-end results closest to six months into the future. See the bottom of the table. Since December 2002 Bloomberg has conducted 104… Continue reading When Will The Bond Bears Be Right?
<Click on chart for larger image> Bloomberg.com – French-German Yield Spread Widens to a Record on Ratings Outlook Concern The French 10-year bond yield climbed to 100 basis points above its German equivalent for the first time since the euro’s 1999 debut after Moody’s Investors Service said the nation’s AAA credit rating is under pressure.… Continue reading French-German Spreads At A New Record
<Click on chart for larger image> Reuters.com – Fed officials at odds on inflation threat Fissures at the Federal Reserve over the correct course of future monetary policy were on display Monday, with one top policymaker calling for further easing even as another suggested tighter policy may be needed. Jeffrey Lacker, the Richmond Fed’s hawkish… Continue reading Federal Reserve Officials Cannot Agree
The Telegraph (UK) – A leveraged EFSF is pure poison We will find out soon enough what EU leaders actually intend to do – rather than what the European Commission would like them to do. As US Treasury Tim Geithner said “the devil is in the details”, not in the headlines. Chancellor Angela Merkel sought… Continue reading Losing Faith In Europe’s Rescue Plan