The Wall Street Journal – Firms Loosen Grip on Cash Companies are starting to spend some of their record piles of cash, making acquisitions and increasing capital expenditures that could provide a much-needed boost to the economy. But because the companies have slashed expenses in recent years, the cash is still piling up faster than… Continue reading Cash On The Sidelines
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Comment Jim Bianco was on Bloomberg TV Friday morning discussing the markets and the Federal Reserve. To view the interview click on the picture above. To view any of our recent interviews click here. Barron’s – Jim McTague: Is Bernanke Playing Politics? Given the opportunity, I would have asked Bernanke to elaborate on why he… Continue reading Talking About The Federal Reserve
<Click on chart for larger image> The Wall Street Journal – Debt Hamstrings Recovery Inability of Nations, Consumers to Get Out of Hock Weighs on Global Economy Around the globe, the inability of governments and households to reduce their debt continues to cast a shadow over Western economies and the financial health of individuals. Today,… Continue reading Too Much Debt?
<Click on chart for larger image> The Wall Street Journal – Take My Cash, Please Investors seeking shelter from the euro-zone debt crisis are pushing safe-harbor Treasury-bill yields so low that they are lending to the U.S. government for free, or even paying a small fee to do so. Treasury-bill yields are at zero, even… Continue reading T-Bills Yields Back To Zero
Barron’s – JONATHAN R. LAING: The Next Mortgage Bombshell The private insurers that cover $700 billion of U.S. mortgages are facing an onslaught of foreclosures. The big three—MGIC, Radian, PMI—are at risk EVEN IF ONE GIVES THE INSURERS SOME BENEFIT of the doubt on modifications, rescissions and, most important, cures—let’s say a claim rate of… Continue reading Monolines
<Click on chart for larger image> Comment As the chart above shows, the surprise index has stabilized. This simply means economists have finally downgraded their forecasts inline with the weakening economy rather than economic indicators improving. USA Today – Is market telegraphing a double-dip recession? Is the sinking stock market telegraphing another recession? The question… Continue reading The Struggling Economy
Bloomberg.com – Pimco’s El-Erian Says U.S. Debt Default Might Have ‘Catastrophic’ Effect Pacific Investment Management Co. LLC Chief Executive Officer Mohamed El-Erian said a short-term default by the U.S. on its debt might have “catastrophic” legal consequences. “We would be in the land of the unpredictable” if lawmakers fail to reach an agreement to raise… Continue reading Debt Ceiling Debate
<Click on chart for larger image> Comment If the situation in Greece is close to resolving itself, someone should tell the markets. As the chart above shows, it is not getting better. CNBC – John Carney: Why Austerity Doesn’t Matter: Greece Is Still Going to Default This is how quickly the European debt crisis devolves:… Continue reading Greece
The Federal Reserve of St. Louis – Is the FOMC’s Policy Inflating Asset Prices? only central bank that has pursued an aggressively easy monetary policy. Moreover, the second chart is only suggestive. The dramatic increase in commodity prices since the early 2000s could be due to other factors independent of central banks’ interest rate policies.… Continue reading Asset Prices
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Comment Jim Bianco was on CNBC discussing the outlook for the markets. To view the interview click on the picture above. To view any of our recent interviews click here. The Financial Times – Record retreat from junk bond funds Investors withdrew a record amount of cash from US funds that buy junk bonds, sparked… Continue reading The Risk-Off Trade