The Wall Street Journal – In Shades of Panics Past, a Dash to Cash The recent surge in money supply is flashing a warning sign. Ironically, it is a deflationary one. On Thursday, the Federal Reserve will issue its weekly update on a slew of monetary indicators and bank-loan data. Typically, these aren’t market movers.… Continue reading Money Supply Surges
Reuters – U.S. mutual fund outflows surge after downgrade U.S. mutual funds had the largest outflows in nearly three years in the wake of the downgrade of the U.S. credit rating by Standard & Poor’s, data from the Investment Company Institute showed on Wednesday. Investors pulled a net $40.3 billion out of those funds in… Continue reading Mutual Fund Investors See Shades Of 2008
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Charts of the Week Topics Covered This Week Include: Are Stocks Cheap? Are Stocks Cheap? -2 Are Stocks Cheap? -3 Recession Talk Why Is M2 Booming? Why Is M2 Booming? – 2 Volume Volatility Inflation Will Determine The Likelihood Of QE3 Inflation-Adjusted Gold Prices Reserve Currencies A New Plan For Europe China Is Selling Everything… Continue reading Untitled
<Click for chart for larger image> FT Alphaville – The Fed’s secret QE equivalent The second was the debt ceiling debacle, which clearly made the subject of adding additional supply via fresh issuance from the Treasury a more than taboo subject. Faced with no incentive to hold cash on reserve at the Fed, and more… Continue reading Why Is M2 Booming?
The Wall Street Journal – Alan S. Blinder: A Tale of Two Downgrades Standard & Poor’s lack of confidence in U.S. performance is risible. The Fed’s is not What all this says to me is that the FOMC majority is very worried. So unless the storm clouds lift quickly, there is probably more easing to… Continue reading Was The U.S. Downgrade Justified?
<Click on chart for larger image> The Wall Street Journal – Fresh Plan for Europe Crisis Germany and France presented a broad plan to better coordinate economic policy across the 17-nation euro zone, amid growing fears that a slowdown in the region could accelerate the debt crisis that has pushed the Continent’s common currency to… Continue reading A New Plan For Europe
<Click on chart for larger image> MarketWatch.com – How volatile has the market really been? Of course, many of the days this month have seen daily changes well in excess of 1%. Six of them experienced changes in excess of 2%, in fact. But there have been more than 500 other occasions during the Dow’s… Continue reading Market Volatility
The Economist – After the crash Does a big one-day drop in the stockmarket presage recession? In almost all big market falls since 1951 (when quarterly GDP figures began) the crash has come in the midst of an economic recovery. In most cases, economic growth continued for several quarters after the crash, with the notable… Continue reading Discussing Markets
The Wall Street Journal – Editorial: Warren Buffett’s Tax Dodge The billionaire volunteers the middle class for a tax increase Mr. Buffett is one of the great stock-pickers of his time, and we don’t begrudge him a single dollar of his wealth. We only wish that, having already made himself rich, he weren’t so intent… Continue reading More On Buffett’s Tax Ideas
The Wall Street Journal – Perry Sticks by His Bernanke Attack Texas Gov. Rick Perry’s jab at Federal Reserve Chairman Ben Bernanke heightened a Republican debate about the Fed as a political target and raised questions about whether Texas tough talk will prove an asset or liability in Mr. Perry’s presidential quest. Mr. Perry brought… Continue reading Rick Perry Attacks The Federal Reserve
Bloomberg.com – Fed’s Bullard Says New 2013 Rate Pledge Not a Signal for More Bond Buying St. Louis Federal Reserve Bank President James Bullard, who was the first Fed policy maker to urge the round of bond purchases that started last year, said the central bank isn’t signaling a third stimulus program with its commitment… Continue reading Low Interest Rate Pledge Does Not Mean We Will See QE3