MarketWatch – CME increases gold margin requirements by 27% The CME Group Inc., the parent company of the main metals and energy exchanges in the U.S., on Wednesday announced an increase in margin requirements to trade gold. The money needed to trade gold contracts increased 27%. Initial margin requirements rose to $9,450 from $7,425 per… Continue reading CME Raises Gold Margins AGAIN
The Wall Street Journal – Bernanke Is Unlikely to Promise New Action by the Fed Fed Chairman Ben Bernanke is unlikely to use his speech Friday at the Federal Reserve’s annual Jackson Hole, Wyo., conclave to unveil new efforts to bolster the U.S. economy—despite financial markets’ lingering hopes that he will. As the economic outlook… Continue reading Jackson Hole
The Wall Street Journal – Europe Banks Lean More on Emergency Funding Commercial banks boosted their reliance on the European Central Bank, borrowing €2.82 billion ($4.07 billion) from an emergency lending facility on Tuesday, while other banks continue to park unusually large amounts with the central bank, according to data released Wednesday. While the amount… Continue reading Funding Concerns Continue In Europe
<Click on chart for larger image> Comment Read the recent collapse in the chart above as a sign that all the economic numbers out of Europe are bad. The economy is much worse than thought. This usually happens when a turning point is occurring. The Wall Street Journal – Euro-Zone Data Show Rough Path Lies… Continue reading Europe’s Economic Situation Is Not Improving Either
<Click on graphic for larger image> The Wall Street Journal – Forecast Clouds Debt-Cut Outlook The congressional panel charged with finding ways to reduce the deficit by at least $1.2 trillion over the next 10 years received daunting news Wednesday when the Congressional Budget Office projected stubbornly high unemployment will accompany large deficits for much… Continue reading The CBO Revises Its Outlook
<Click on chart for larger image> The Wall Street Journal – A Rush Out of ‘Junk’ The market for “junk” bonds is enduring its worst rout since the depths of the financial crisis. Demand for high-yield bonds sold by the riskiest U.S. companies has nearly dried up, an ominous sign for low-rated companies hoping to… Continue reading Junk Bonds
The Financial Times – Lex: Equities: metrics of the trade Pundits (as well as stockbrokers whose livelihoods require clients to be buying) reckon its time to buy equities – because they are cheap. Two indicators are commonly used to back this up. First, price/earnings ratios are cheap relative to history. Second, dividend yields on shares… Continue reading Equity Valuations
The New York Times – U.S. May Back Refinance Plan for Mortgages The Obama administration is considering further actions to strengthen the housing market, but the bar is high: plans must help a broad swath of homeowners, stimulate the economy and cost next to nothing. One proposal would allow millions of homeowners with government-backed mortgages… Continue reading More Mortgage Subsidies?
The Wall Street Journal – Paulson’s Losing Streak Continues John Paulson, the hedge-fund billionaire who runs the $35 billion Paulson & Co., has suffered further losses in one of his largest funds as his losing streak continues. Mr. Paulson’s Advantage Plus fund has lost 38.7% this year through the end of Friday’s trading, according to… Continue reading John Paulson: Live By The Sword, Die By The Sword
Bloomberg.com – Jonathan Weil: Buffett’s $7 Million Sacrifice Is Only a Start In a New York Times op-ed last week, the Berkshire Hathaway Inc. chief executive officer said his federal-tax bill for 2010 was about $6.9 million, just 17 percent of his taxable income. The other 20 people in his office paid an average rate… Continue reading Warren Buffett
None Today
Charts of the Week Topics Covered This Week Include: Everyone Hates Bonds! What Is The Difference Between Stocks And Crude Oil? Credit Continues To Underperform Equities Credit Continues To Underperform Equities – 2 The Eurozone Economy Continues To Disappoint Italian Yields Spain Switzerland Who Is Buying Treasuries? Who Is Buying Treasuries? – 2 What Is… Continue reading Untitled