<Click on chart for larger image> The Financial Times – EU stance shifts on Greece default European leaders are for the first time prepared to accept that Athens should default on some of its bonds as part of a new bail-out plan for Greece that would put the country’s overall debt levels on a sustainable… Continue reading Is Greece About To Default?
The Washington Post – Delayed payments in 1979 offer glimpse of default consequences In fact, there was one short-lived incident in the spring of 1979 that offers a glimpse of some of the problems and costs that might arise if the stalemate on Capitol Hill continues. Then, as now, Congress had been playing a game… Continue reading Debt Default, Is 1979 A Valid Comparison?
Bloomberg.com – Fed on Hold Longest Since 1940s The last time the Fed maintained such prolonged monetary support for the economy was from 1937 to 1947 when it kept its “rediscount rate,” or the discount it applied to commercial banks borrowing cash against high quality promissory notes they had issued, at 1 percent. From 1941… Continue reading How Long Has The Federal Reserve Been On Hold? 11 Days Or 931 Days?
The Globe And Mail (Canada) – Speculators and oil prices: conspiracy or coincidence? Mr. Alquist and Mr. Gervais noted that from 2000 to 2008 – a period during which oil prices surged from less than $20 a barrel to more than $140 – non-commercial (or speculative) open interest in crude oil futures increased from less… Continue reading The Evil Oil Speculators
<Click on chart for larger image> Bloomberg.com – Brazil Central Bank Acts to Curb Short Dollar Positions, End Real’s Rally Brazil took further action to end a rally in the real yesterday, a day after Finance Minister Guido Mantega said that a global currency war is still on. Latin America’s largest economy will require that… Continue reading Currency Wars
The New York Times – Floyd Norris: The Boom and Crash Cycle of I.P.O.’s In the fourth quarter of 1999, the total amount raised by I.P.O.’s hit $66.1 billion, which was then the highest level ever. More than three-quarters of that was raised in the American market and most of it was for technology companies.… Continue reading IPO Cycle
Reuters – EU to propose curbs on ratings use by banks Peter De Proft, director general of the European Fund and Asset Management Association (EFAMA), told Reuters many investment firms already do their own credit analysis. “It will be more difficult for the smaller ones,” De Proft said. Moody’s angered the EU this month by… Continue reading More Proof Nothing Was Learned From The Credit Crisis
The Washington Post – James Grant: The golden rule of fiscal discipline The solution to the looming federal funding crisis could hardly be simpler. America has a credit card. What it sorely needs is a debit card. Imagine a super-premium platinum credit card with no preset spending limits; no membership fee; low, low interest rates;… Continue reading Fiscal Discipline
<Click on chart for larger image> The Wall Street Journal – China Price Watchers Predict Another Peak Economists are predicting that China’s surging inflation—reflected in new data showing a sharp rise last month—is about to hit its peak and start subsiding, which could augur a halt to the government’s efforts to tap the breaks on… Continue reading China’s Inflation Worsens
The New York Times – Bubble? What Bubble? Marc Andreessen, one of Silicon Valley’s biggest venture capitalists, has no fear Contrary to all the recent hype about a bubble, you’ve said that tech companies are actually undervalued. So in true 1999 fashion, should I take my life savings out of mutual funds and toss it… Continue reading Mark Andreessen Sees No Bubble In His Investments
None Today
Comment Jim Bianco was on CNBC yesterday discussing the stock market. He made the case that the market rally is not necessarily a sign that the economic soft patch is over. See our new poll question in the right hand column. To view the interview click on the picture above. To view any of our… Continue reading Interpreting The Stock Market’s Move