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The Double Dip
August 16, 2011
Bloomberg.com – It’s the Dog Days of Summer, Shall We Take a Double Dip? Now that the U.S. has survived the debt-ceiling debate, the downgrade and the topsy-turviest Wall Street week in recent memory, we can get back to focusing on the gloomy big picture. Specifically, are we going to have a double-dip recession? More… Continue reading The Double Dip
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Banning Short Selling
August 16, 2011
The Wall Street Journal – Short on Solutions Someday economic historians will describe Europe’s reaction to its current fiscal woes as a case study in avoiding the real problem. In the latest episode, regulators in France, Italy, Belgium and Spain decided late last week to stop the decline of European bank shares by imposing a… Continue reading Banning Short Selling
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Foreign Purchases Of U.S. Treasuries
August 16, 2011
<Click on chart for larger image> The Wall Street Journal – Treasurys: Once Upon a Time, Nobody Wanted Them The Treasury Department released its Treasury International Capital data for June earlier, and it showed a big drop in foreign demand for Treasurys in June. In other ancient history, on this date in 778 the Basques… Continue reading Foreign Purchases Of U.S. Treasuries
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The Return Of The Death Cross
August 16, 2011
MarketWatch – ‘Death cross’ springing up everywhere The “death cross,” a high-profile bear-market indicator, springs up everywhere. The death cross forms when the 50 Day Moving Average crosses the 200 Day Moving Average in a downward trajectory and is a widely followed indicator that’s commonly viewed as a harbinger of bear markets. Last week, it… Continue reading The Return Of The Death Cross
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Reserve Currencies
August 16, 2011
<Click on chart for larger image> The Financial Times – Time to question the dollar’s role as reserve The over-dependence on one or a few currencies has long been recognised as a problem. In the 1960s, economist Robert Triffin highlighted the fact that the use of national currencies to manage international liquidity may eventually pose… Continue reading Reserve Currencies
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High Frequency Traders
August 16, 2011
The Wall Street Journal – A Wild Ride to Profits High-frequency traders have roughly tripled their stock trades this month, estimates Tabb Group, a markets-research firm in New York. That has boosted their share of overall U.S. stock trading volume to about 65%, up from about 53% during the months before the August turmoil, according… Continue reading High Frequency Traders
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Rents
August 16, 2011
Chicago Real Estate Daily – Downtown apartment rents surpass previous boom Life was good for downtown landlords before the recession hit four years ago, as rents hit record highs. It’s even better now. Rents at downtown buildings have already eclipsed the highs of the last boom and are likely to keep rising, fueled by a… Continue reading Rents
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Can The World Stimulate/Inflate Its Way To Prosperity?
August 16, 2011
The Financial Times – Christine Lagarde: Don’t let fiscal brakes stall global recovery For the advanced economies, there is an unmistakable need to restore fiscal sustainability through credible consolidation plans. At the same time we know that slamming on the brakes too quickly will hurt the recovery and worsen job prospects. So fiscal adjustment must… Continue reading Can The World Stimulate/Inflate Its Way To Prosperity?
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Eurobonds
August 16, 2011
The Wall Street Journal – Eurobond Debate Rises in Germany, France Germany and France are being forced to reconsider an unpalatable idea as the euro zone’s debt crisis spreads to its core economies: Making the currency bloc as a whole responsible for its member nations’ debts. The idea of collective liability, often referred to as… Continue reading Eurobonds
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Cartoons
August 16, 2011
Newsclips
Are Stocks Cheap?
August 15, 2011
The Wall Street Journal – The Other Shoe –Earnings After Drop in Stock Prices, Some Say Profit Expectations Must Fall, Too; ‘Skewed to the Negative’ The market selloff in recent weeks has made stocks appear very cheap. But some argue they aren’t as much of a bargain as they might seem. The Standard & Poor’s… Continue reading Are Stocks Cheap?