The New York Times – Floyd Norris: Studying Housing Through Distorted Indexes The top chart in the accompanying graphic shows the quarterly changes in the national index from 2000 through the first quarter of 2011. It shows a strong market early in the decade that went into overdrive in 2004 and 2005, only to… Continue reading Housing Hits New Lows While Rents Are On The Rise
The Financial Times – Greece set for severe bail-out conditions European leaders are negotiating a deal that would lead to unprecedented outside intervention in the Greek economy, including international involvement in tax collection and privatisation of state assets, in exchange for new bail-out loans for Athens. People involved in the talks said the package would… Continue reading Greece
The Independent (UK) – Stephen King: Off with its head? The four ‘impossible’ solutions that face the eurozone Economic Outlook: Countries attempting to bring back their own currencies would suffer excessive appreciation or complete collapse Why, sometimes I’ve believed as many as six impossible things before breakfast.” So said the Queen to Alice. The idea… Continue reading Europe
The New York Times – GRETCHEN MORGENSON: U.S. Has Binged. Soon It’ll Be Time to Pay the Tab SAY this about all the bickering over the federal debt ceiling: at least people are talking openly about our nation’s growing debt load. This $14.3 trillion issue is front and center — exactly where it should be.… Continue reading The Debt Ceiling
The Wall Street Journal – Oil Epicenter’s Sway on Prices Begins to Slip This small city, which calls itself the “Pipeline Crossroads of the World,” has been the center of the oil market for nearly three decades, housing millions of barrels of the light, sweet crude that make up the world’s most actively traded oil… Continue reading Crude Oil
MarketWatch – Peter Brimlow: Gold signaling hyperinflation? Gold bugs cite lack of faith in paper money Another fabulous Friday for gold has the bugs bugalooing. With two distinct surges, early and late in the New York morning, gold as represented by the CME June contract closed at a high for the week, up $13.50 on… Continue reading Gold
<Click on chart for larger image> The New York Post – Comin’ this summer… $5 gas The living’s easy — the driving is hard The forecast for the summer driving season: Hit the road early. Not to beat the traffic, but to beat the higher gas prices expected in mid-July. Goldman Sachs’ crystal ball is… Continue reading $5 Gasoline
The New York Times – Why Are Investors Still Lining Up for Bonds? THERE is nothing more intimidating than the bond market, once it starts flexing its muscles. So said James Carville, the Democratic political strategist, after finding himself on the losing side of some bruising budget battles in the 1990s. “Who the hell knew… Continue reading Everybody Loves Treasuries
Zero Hedge (blog) – Moody’s Places Japan Aa2 Rating On Downgrade Review, Notes Possibility Of JGB Funding Crisis Singapore, May 31, 2011 — Moody’s Investors Service has today placed the Government of Japan’s Aa2 local and foreign currency bond ratings on review for possible downgrade. The review has been prompted by heightened concern that faltering… Continue reading Japan On Downgrade Review … Again
International Business Times (Australia) – Feature: Wall Of Worries Returns Japan has slipped back into recession – its sixth in 18 years – and the associated disruption to production is affecting global production chains; Chinese growth is slowing at a time when policy makers are not yet prepared to signal easing, as inflation is yet… Continue reading Will The Economy’s Current “Soft Patch” Lead To QE3?
Bloomberg.com – Caroline Baum: Recession Forecasts? Yield Curve Says No Way Green shoots are proliferating in gardens across America, but for some forecasters it already looks like the end of summer. A few are even hinting at recession by year-end. That’s highly unlikely. While black swans have gained a new cachet following the prices-can’t-fall-nationwide housing… Continue reading What Is The Yield Curve Saying?