<Click on chart for larger image> The Economist – Wheat prices: Grim reaping A lack of rain in China threatens to send wheat prices even higher FEW commodities are impervious to the “China effect”—the upward pressure on prices from rampant demand in the world’s bounciest big economy. Coffee is one: few Chinese drink the stuff.… Continue reading Higher Food Prices
<Click on chart for larger image> The Financial Times – Lex: High-yield bonds With most western economies tentatively in recovery mode, a new bubble in the financial system is probably the last thing on leaders’ minds. But two data points this week may make them pause. First, rating agency Moody’s reported that during January there… Continue reading Junk Bond Issuance
The Economist – The euro area’s debt crisis: Hopes raised, punches pulled European leaders look set to fudge the latest test of their resolve EVER since the sovereign-debt crisis erupted a year ago bond markets have repeatedly tested the resolve of European leaders to avoid government defaults. On each occasion euro-zone members have done something—but… Continue reading European Debt – Still Not Getting Better
The Economist – Emerging markets: Shifting sands Investors are worried, but more about inflation than demonstrations THE turmoil in Egypt marks a turning-point for that country’s politics. Might it also be a turning-point for investment in emerging markets? Hungry for yield as the financial crisis abated, investors flocked to emerging markets in the past two… Continue reading Emerging Markets
Reuters – James Saft: Bonds, risk and Bernanke’s intentions Asked on Wednesday at an appearance before the U.S. House of Representatives Budget Committee if the Fed’s $600 billion programme of quantitative easing amounted to monetization — that Peter to Paul transfer when a government prints money to pay for a shortfall — Ben Bernanke said… Continue reading Yes Ben, You Are Printing Money And Monetizing Debt
The Economist – Where is the next upheaval? BY PUTTING together a number of indicators that we believe feed unrest,and ascribing different weights to them, we have come up with a chart of Arab countries’ vulnerability to revolution. Some factors are hard to quantify and are therefore discounted; the data on unemployment, for example, were… Continue reading The Shoe-Thrower’s Index
The Wall Street Journal – Fed’s Warsh Plans to Leave His Post Federal Reserve Board Governor Kevin Warsh, a close associate of Chairman Ben Bernanke, will step down around March 31, giving President Barack Obama a chance to deepen his imprint on the central bank after the financial crisis. Mr. Warsh submitted his resignation to… Continue reading A Hawk Leaves The Federal Reserve
The Economist – Influential economist: The contemporary Keynes Which economist is doing most to shape post-crisis thinking? DISMAL economies are often dismal for economists. Respected figures find themselves defending discredited theories or justifying why they failed to see trouble coming. But calamity can also clear paths for new ideas. The Depression was the backdrop for… Continue reading Economists
The New York Times – U.S. Seeking Smaller Federal Role in Mortgages In a 31-page report, the administration proposed that the two mortgage lending giants, Fannie Mae and Freddie Mac, should be gradually abolished and it gave Congress three options for reducing the government’s role in supporting homeownership. It did not recommend an option; instead,… Continue reading Fixing Fannie/Freddie
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Comment Jim Bianco was on Reuters TV discussing Bernanke yesterday afternoon. To view the interview click on the picture above. To view any of our recent interviews click here. The Federal Reserve – Bernanke’s Prepared Remarks Before The Budget Committee The economic recovery that began in the middle of 2009 appears to have strengthened in… Continue reading When All Else Fails, Just Make Up Statistics
<Click on chart for larger image> Zero Hedge (Blog) – Why Contrary To The Chairman’s Lies, A Record Steep Yield Curve May Be The Most Bearish Indicator Available The most important characteristic of current capital markets, aside of course from now completely irrelevant stocks, which there is no point in even discussing any more as… Continue reading Is The Record Steep Yield Curve Bullish Or Bearish?