ABCNews.com – BNP Paribas Denies It Can’t Get Dollar Funding BNP Paribas’ share price surged following early losses Tuesday after the French bank vehemently denied reports that it was struggling to secure dollar funding amid concerns that European banks aren’t able to weather the continent’s debt crisis. European banks — many of which hold substantial… Continue reading BNP Says Everything Is OK
CNBC – Dow Could Crash to 3,000 in 2013 The recent gyrations in global stock markets are just the beginning, says U.S.-based economist and author Harry Dent, who believes the Dow will fall below 10,000 in the near term before crashing to around 3,000 in 2013. “I think the stock crash started in late April.… Continue reading Did Harry Dent Leave A Digit Off His Most Recent Stock Market Prediction?
The New York Post – Warrant Buffett How does the Oracle of Omaha seem to get inside preferred offering investments “Did he [Buffett] have inside information that other investors were not aware off? Did he know that there were going to be these two major announcements [of the job cuts and executive firings] at the… Continue reading The Oracle Of Omaha
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Yesterday Jim Bianco was on Bloomberg Asia discussing the markets and the rumors that China will buy Italian debt. To view the interview, click on the image above. To view any of our recent interviews click here. The Financial Times – Italy turns to China for help in debt crisis Italy’s centre-right government is turning… Continue reading Will China Come To The Rescue?
<Click on chart for larger image> Comment As the chart above shows, money has been flooding into the ECB’s deposit facility in recent days because European banks are afraid to park funds in other European banks. So, they park it at the ECB. The Wall Street Journal – Pain Mounts for Europe Banks Fears About… Continue reading Funding Stress Continues Among European Banks
<Click on chart for larger image> Comment The chart above shows the amount world central banks and other official bodies have deposited at the Federal Reserve via a repo (or reverse repo for the Fed). This amount has increased from 65 billion euros since late-July when the Eurozone crisis intensified to over $100 billion euros… Continue reading The Federal Reserve: World Banker Of Last Resort
Bloomberg.com – Obama Moots Limits on Tax Breaks for Muni Bonds President Barack Obama proposed curbing the amount of interest from municipal bonds that top earners can exclude from their taxable income, a step that may diminish demand for state and local-government securities. The president’s $447 billion job-creation plan would pare the tax break for… Continue reading Obama’s Jobs Plan
<Click on chart for larger image> Comment The chart above shows deposits in the Greek banking system. 21% of the September 2009 high in deposits has been withdrawn (and presumably placed in other foreign banks). September 2009 was eight months before the recognized start of the European debt crisis on May 6, 2010 (which was… Continue reading Greek Banks And Bonds
The Financial Times – The Fed and Operation Twist “Operation Twist” – selling short-dated Treasuries and buying longer-dated paper in a bid to push down longer-term yields – could achieve similar results to QE without the controversial, and widely misunderstood, expansion of the Fed’s balance sheet. QE’s aim was to extend the duration of the… Continue reading Operation Twist
<Click on chart for larger image> The Los Angeles Times – U.S. motorists may spend a record $491 billion for gasoline this year Even though gas prices are well below their all-time highs in 2008, this year’s average is running higher than for that year. The causes are expensive oil and increased exports of refined… Continue reading Gas Prices
CNBC – Dow Could Crash to 3,000 in 2013: Author The recent gyrations in global stock markets are just the beginning, says U.S.-based economist and author Harry Dent, who believes the Dow will fall below 10,000 in the near term before crashing to around 3,000 in 2013. “I think the stock crash started in late… Continue reading Dow 3,000