The Guardian (UK) – EU should control member states’ budgets, says bank boss Jean-Claude Trichet, President of European Central Bank, says recent debt problems show need for central EU control of national budgets A long-term solution to the crises rippling through the 17-nation eurozone will require the creation of a central finance ministry with the… Continue reading Trichet: End Europe As We Know It
theStreet.com – Steve Forbes Pushes Modern Gold Standard Before you scoff at the idea of a gold standard, Steve Forbes says to take another look. A “true” gold standard where every U.S. dollar in circulation is backed by gold is literally impossible. The amount of money in circulation is almost $9 trillion. That’s counting cash,… Continue reading Bring Back The Gold Standard
<Click on chart for larger image> The Wall Street Journal – Moody’s Threatens U.S. Debt Rating Cut Moody’s Investors Service warned Thursday that it might review the government’s Aaa debt rating for a possible downgrade as early as next month if there is no progress toward a deal in Washington to increase the $14.294 trillion… Continue reading A US Debt Rating Cut?
The Economists – Mining: The wacky world of gold Why gold bugs no longer love gold miners Not all gold investors stockpile guns and tinned food in remote cabins, of course. Nor are they all fans of Glenn Beck, an American pundit who preaches doom and urges his listeners to buy gold. But most agree… Continue reading Gold Stocks
The Financial Times – Risk asset correlation strikes again Stocks, corporate bonds, metals, currencies and other assets are again moving in tandem with the dollar, with measures of correlation surging in May to their highest in six months. The sharp rises in correlation – and a return to the “risk-on, risk-off” trading patterns that have… Continue reading Correlated Markets
Bloomberg.com – Chinese Economic Slowdown May Lead to 75% Plunge in Commodities, S&P Says A “sudden” slowdown in China may lead commodity prices to fall as much as 75 percent from current levels, Standard & Poor’s said. Unexpected shifts in government policies or problems in the banking sector may trigger such a slowdown, S&P said… Continue reading China And Commodities
The Economist – Buttonwood: On the wrong track Is there a better way to mimic the stockmarket? The holy grail is to create a passive portfolio that achieves the same cost savings as traditional trackers while improving on the performance of a value-weighted index. One approach is to rank companies by other measures. Research Affiliates,… Continue reading What Benchmark Should One Use?
The Economist – America’s dodgy financial plumbing: Too big a fail count The sheer number of unsettled trades is rattling regulators Trades are settled when the seller delivers the security in return for cash, generally one-to-three days after the trade. Only then does the buyer legally own it and no longer have to worry about… Continue reading Fails
None Today
Conference Call Presentation/Charts of the Week audio webcast Topics Covered This Week Include: Housing – Worse Than The Great Depression? Housing – What “Double Dip”? Is The Economy Softening? Is The Economy Softening? – 2 The Correlation Between Stocks & Bonds The Correlation Between Stocks & Bonds – 2 Medium-Term Inflation Expectations Long-Term Inflation Expectations… Continue reading Untitled
Comment We will hold a conference call on this subject at 9AM CT (handout, register). Yahoo Finance – Time to Let Markets Adjust on Their Own, Stop Intervention: Jim Bianco “Quantitative easing is all about trying to prevent pain in the marketplace,” he says. ” But in doing so, it prevents adjustments, and that’s why… Continue reading Will QE3 Happen?
Zero Hedge (blog) – Remember The Can’t Lose, First Day Of The Month Trade? It was big news last year when someone pointed out that 134 out of 143 S&P 500 points came on the first day of the month. 10 of 12 first days of the month in 2010 were positive. Everyone was chattering… Continue reading The First Of The Month