Bloomberg.com – William Pesek: Bubbles Galore to Make 2011 Year to Remember Welcome to the year of the bubble. It may seem an odd assertion at a time when many key economies are in, or on the verge of, recession. Yet near-zero interest rates in Washington, Tokyo and Frankfurt have a way of wreaking havoc… Continue reading 2011: The Year Of The Bubble?
Forbes – The Bernanke arbitrage So what money supply measure are we tracking? It’s a metric called TMS, for True Money Supply, a formulation based on the monetary insights of the Austrian School of economics. Those mainstream M’s – like M1, M2 and M3 – although widely followed, we submit, are all seriously flawed, for… Continue reading Money Supply: Perception vs. Reality
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Charts of the Week Topics Covered This Week Include: The State Of The Economy What Does The First Week Of Trading Tell Us? What Does The First Month Of Trading Tell Us? Are Mutual Fund Investors Switching To ETFs? Are Mutual Fund Investors Switching To ETFs? – 2 Are Mutual Fund Investors Switching To ETFs?… Continue reading Untitled
<Click on chart for larger image> ADP National Employment Report – December 2010 National Employment Report Private-sector employment increased by 297,000 from November to December on a seasonally adjusted basis, according to the latest ADP National Employment Report® released today. The estimated change of employment from October to November was revised down but only slightly,… Continue reading Bet Your Life On ADP?
Comment Jim Bianco was on CNBC yesterday discussing the Federal Reserve minutes. To view the interview click on the picture above. To view any of our recent interviews click here. The Wall Street Journal – Fed Stands by Bond Purchases as Long-Term Rates Rise Federal Reserve officials were unfazed by a rise in long-term interest… Continue reading Discussing The Federal Reserve Minutes
Pimco.com – Bill Gross: Off With Our Heads! Unlike Euroland or the United Kingdom, which appear to have gone on an extreme fiscal diet, the American answer to a bulging waistline is always “mañana.” Debt commission recommendations are tossed in the trashcan, tea party election rhetoric eventually focuses on miniscule and merely symbolic earmarks, and… Continue reading Bill Gross Speaks
Project Syndicate – Kenneth Rogoff: Armageddon Can Wait Where are global currencies headed in 2011? After three years of huge, crisis-driven exchange-rate swings, it is useful to take stock both of currency values and of the exchange-rate system as a whole. And my best guess is that we will see a mix of currency wars,… Continue reading Ken Rogoff Speaks
Bloomberg.com – Caroline Baum: Economy’s Overheating? We Should Be So Lucky In the Journal’s too-hot-to-handle scenario are 4 percent real GDP growth, an unemployment rate that quickly dives below 8 percent and inflation rising to 2 percent from about 1 percent now. Such a scenario would be compounded by a falling dollar, rising commodity prices… Continue reading The U.S Economy
The Wall Street Journal – Bondholders Are Rattled by Prepayment Covenants Bond markets remain so frothy that corporate-bond buyers aren’t worried they won’t get paid; they are worried about getting paid too soon. High-yield, or “junk,” bonds typically include a stipulation, known as call protection, that forces borrowers to pay steep “make whole” penalties if… Continue reading Corporates
Bloomberg.com – Europe Banks Race Sovereigns to Bond Investors Deutsche Bank AG and Rabobank Nederland led European lenders selling U.S. bonds yesterday ahead of euro-area countries, beset by the sovereign debt crisis, that need to raise $1.1 trillion this year. Germany’s biggest bank issued $1 billion of five-year notes in its first dollar-denominated sale since… Continue reading Europe
Bloomberg.com – Lee Hsien Loong: Yuan Revaluation Is Win-Win for China-U.S. The world has recovered remarkably quickly from the financial crisis. But growth is now on two tracks: developed economies still struggling with fiscal, financial and structural problems, while emerging economies, especially in Asia, are growing robustly. The resulting global imbalances have created international tensions.… Continue reading Will A Yuan Revaluation Be Positive For The U.S. And China?