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June 9, 2011
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Charts of the Week Topics Covered This Week Include: The Economy Continues To Disappoint The U.S. Unemployment Rate The Manufacturing Economy Who Is Losing Jobs? How Bad Is Housing? The Taylor Rule What Is The Consensus On Gold? Long-Term Look At Gold Retail Gas Prices ETF Holdings Of Commodities Munis/BABs Recovering? Mutual Fund Flows Update… Continue reading Untitled
<Click on picture for larger image> Comment Let us briefly sum up Bernanke’s speech from yesterday afternoon: The economy is slowing but it’s all “transitory” (the Federal Reserve’s new favorite word). Inflation statistics are being overly influenced by gas prices, something which the Federal Reserve cannot control. The economy needs more accommodation, which means the… Continue reading Bernanke Speaks
<Click on picture for larger image> Bond Buyer – Scarcity Value Gives BABs a Boost When the Build America Bond program ended there were two schools of thought. One argued that BABs would become an orphan class, with prices in the secondary market suffering from illiquidity. Another group thought there would be some scarcity value… Continue reading Munis/BABs Recovering?
CNBC – Investors Can Profit From ‘Inevitable” Financial Crisis: Mobius Another financial crisis is “inevitable,” Mark Mobius, head of Templeton Emerging Market Group, told CNBC Tuesday. But that crisis is “no big disaster. In fact it could be an opportunity to buy cheap stocks again,” Mobius said. “So I don’t consider it a very bad… Continue reading Is Another Financial Crisis Coming?
The Financial Times – Dimon confronts Fed chief over banking regulations Jamie Dimon, chief executive of JPMorgan Chase, questioned Ben Bernanke, Fed chairman, at an Atlanta conference on Tuesday and suggested that a slew of regulations – such as plans for an additional capital charge for large banks – were hurting the economy. “Has anyone… Continue reading Jamie Dimon Confronts Bernanke About Bank Regulation
<Click on graphic for larger image> The Financial Times – Wanted: the next big idea in commodities If 2011 has taught investors anything, it is that not all commodities are equal. While Brent crude oil, robusta coffee and silver are up more than 15 per cent for the year so far, raw sugar, nickel and… Continue reading There Is No Such Thing As Commodities!
Calculated Risk (blog) – CoreLogic: Negative Equity by State and more CoreLogic … today released negative equity data showing that 10.9 million, or 22.7 percent, of all residential properties with a mortgage were in negative equity at the end of the first quarter of 2011, down slightly from 11.1 million, or 23.1 percent, in the… Continue reading Negative Equity
<Click on chart for larger image> Bloomberg.com – U.S. Treasury Said to Be Reluctant to Sell Its GM Shares at Current Price The U.S. Treasury Department is reluctant to sell part of its 33 percent stake in General Motors Co. (GM) to the company at this point because the price is too low, a person… Continue reading GM Continues To Fall
The Wall Street Journal – Tripped Up by the Margin Silver’s tumultuous ride in late April is a case in point, Mr. Pirrong said. Investors are still crying foul over CME Group Inc.’s decision to raise margins five times over just eight trading days. Between April 25 and May 5, the exchange operator increased silver… Continue reading Did Margin Hikes Crash Silver?
Reuters.com – U.S. debt default unimaginable, creditors say Allowing a brief U.S. debt default to force government spending cuts is a “horrible idea” that could destabilize the world economy and sour already tense relations with big creditors like China, government officials and investors said on Wednesday. A growing number of Republican lawmakers think a technical… Continue reading U.S. Debt Default Is Unimaginable
<Click on chart for larger image> The Wall Street Journal – Europe Wrestles With Solutions for Greek Debt Crisis When it comes to Greek bonds, Europe is trying to have its cake and eat it, too. Germany and other strong euro-zone countries, trying to fashion a second bailout for Greece, want the country’s private-sector creditors… Continue reading Greece