The Financial Times – Debt deal darkens fragile US economic outlook Those responsible for America’s multi-month debt ceiling debacle deserve, at best, an “incomplete”. They could even merit a “fail” grade if both the process and outcome inflict the type of damage to America and the global system that I suspect they will. It is… Continue reading El-Erian Chimes In On The Debt Deal
<Click on chart for larger image> MarketBeat (WSJ Blog) – Stock Funds Suffer Biggest Outflows in More Than a Year Sorry to break this to you, stocks, but everybody in America hates you now, aside from the handful of robots buying you today. The Investment Company Institute just released data showing an outflow of $10.09… Continue reading Everybody Hates Stocks
CNN Money – Wal-Mart: Our shoppers are ‘running out of money’ Wal-Mart’s core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried, CEO Mike Duke said Wednesday. “We’re seeing core consumers under a lot of pressure,” Duke said at an event… Continue reading What Is Wal-Mart’s Stock Telling Us About Jobs?
Bloomberg.com – Corzine’s Obama Clause in MF Global Sale Stuns Wall Street MF Global Holdings Ltd. (MF) took the cult of the Wall Street chief executive officer to a new level with a plan to sell bonds that pay a higher rate if Chairman and CEO Jon Corzine quits to take a job from the… Continue reading Corzine Bonds
None Today
Charts of the Week Topics Covered This Week Include: The Recession Concept That Is Bothering The Market What The Needs To See For QE3 Funding Markets Breathe A Sign Of Relief Will A Downgrade Cause A Funding Crisis? The Yield Curve Collapses Mortgage Rates Sovereign CDS Commercial Paper Update Money Market Fund Update Company Guidance… Continue reading Untitled
Bloomberg.com – Moody’s Affirms U.S. Rating, Warns of Downgrades Moody’s Investors Service and Fitch Ratings affirmed their AAA credit ratings for the U.S. while warning that downgrades were possible if lawmakers fail to enact debt reduction measures and the economy weakens. The outlook for the U.S. grade is now negative, Moody’s said in a statement… Continue reading Rating Agencies Stay At AAA And Funding Markets Get Better
<Click on chart for larger image> Reuters.com – US STOCKS-Massive rout spells trouble for Wall Street The S&P 500 turned negative for the year on Tuesday as the wrangling over the U.S. debt ceiling faded and investors turned their attention to the stalling economy. The broad-based index fell for a seventh day and crashed through… Continue reading The Stock Market
The Wall Street Journal – Kevin Hassett: Stimulus Optimists vs. Economic Reality Financial crises create long periods of slow growth, for which increased spending isn’t the solution With the economy once again teetering on the edge of recession, policy makers will inevitably propose another round of stimulus spending. You can bet on it—just as you… Continue reading What Else Can The Federal Reserve Do?
<Click on chart for larger image> The Financial Times – Gold: pinpointing the peak Gold’s relentless ascent may continue – a wonderful investment opportunity stemming from the spreading loss of faith in fiat money. Or the fourfold price rise in seven years may be the result of fearful and naive buyers putting their faith in… Continue reading Gold Soars To A New Record
<Click on chart for larger image> The Telegraph (UK) – Europe’s money markets freeze as crisis escalates in Italy and Spain The three-month euribor/OIS spread, the fear gauge of credit markets, reached the highest level in two years today, jumping 7 basis points to 40 in wild trading. “Europe’s money markets are undoubtedly starting to… Continue reading Europe
The Financial Times – Rush for safety sends core debt yields tumbling Some of the bond buying – which pushes up prices and lowers yields – has been linked to investors’ efforts to find havens for their cash as they seek a clearer picture of the economic outlook. But the recent falls, which have been… Continue reading Treasuries