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March 3, 2011
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Conference Call Presentation/Charts of the Week Topics Covered This Week Include: Summary/Highlights What Is Core Inflation? What Is Headline Inflation? What Bernanke Thinks Relative Food Price Inflation Monetary Policy & Commodity Spikes Commodities Offer Poor Protection Inflation Expectations As Measured By The TIPS Market Implications Of Maturity Dependence Measuring QE2 POMO And The Stock Market… Continue reading Untitled
Bloomberg.com – Bernanke Sees Temporary Inflation Gain From Commodities Federal Reserve Chairman Ben S. Bernanke said the surge in oil and other commodity prices probably won’t cause a permanent increase in broader inflation and repeated that borrowing costs are likely to stay low. Experience with such price gains in recent decades, along with currently stable… Continue reading Bernanke Discusses Inflation
The Wall Street Journal – Much of Month’s Move Is on First Day It is the latest twist on an old adage: Trade the first day, and stay away. Some traders have been adopting a new ritual in recent months—buying early on the first day of the month and selling by the day’s close—taking advantage… Continue reading An Update On The First Trading Day Of The Month
<Click on chart for larger image> Bloomberg.com – Food Crisis Not as Bad as 2008 Because of Rice Price: OECD A global food crisis on the scale of what happened three years ago isn’t recurring because a jump in the cost of rice, a staple for half the world, has lagged behind that for other… Continue reading Food Prices Continue To Rise
<Click on chart for larger image> The Wall Street Journal – Housing Market Masochism The U.S. housing market is still wheezing: The Case Shiller home-price index has fallen for five consecutive months and 22.5% of all residential properties with a mortgage are in negative equity, according to CoreLogic’s latest data. Bank foreclosures are expected to… Continue reading Home Prices And More Government Programs
<Click on chart for larger image> MSN Money – What if gas cost $10 a gallon? What if you drove up to the pump tomorrow and saw that gasoline had hit $10 a gallon, you’d have to start acting as though you lived in a remote Alaskan village, where $10-a-gallon gasoline is already a reality.… Continue reading Retail Gas Prices – To Infinity And Beyond
<Click on chart for larger image> The Wall Street Journal – Muni Default Estimate: $100 Billion A consulting firm founded by economist Nouriel Roubini said there could be close to $100 billion of municipal-bond defaults over the next five years as state and local government-debt problems damp the U.S. economic recovery. That figure would by… Continue reading Muni Defaults
MarketWatch.com – GM U.S. February auto sales surge 45.8% to 207,028 General Motors Co. said Tuesday U.S. sales in February surged 45.8% to 207,028 vehicles from 141,951 in February 2010. <Click on chart for larger image>
Pimco.com – Two-Bits, Four-Bits, Six-Bits, a Dollar What an unbiased observer must admit is that most of the publically issued $9 trillion of Treasury notes and bonds are now in the hands of foreign sovereigns and the Fed (60%) while private market investors such as bond funds, insurance companies and banks are in the (40%)… Continue reading Bill Gross Speaks
The Wall Street Journal – Get Ready for a Growth Supercycle The argument is compelling. Growth trajectories from China, India and Brazil to Indonesia, Turkey and sub-Saharan Africa speak for themselves. Americans and Europeans should be relieved to hear that other countries can do a bigger share of the world’s economic lifting. Yet, a global… Continue reading Emerging Markets
MarketWatch.com – Why 2010 wasn’t a turnaround year for banking Commentary: Next banking crisis will be on Main Street To believe FDIC Chairwoman Sheila Bair last week, 2010 was a “turnaround year” for the U.S. banking industry. Almost two-thirds of all banks reported year-on-year improvement in quarterly net income in the fourth quarter, and the… Continue reading The Next Crisis