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Newsclips
Cartoons
December 17, 2010
None Today
Newsclips
Mutual Fund Flows
December 16, 2010
The Wall Street Journal – Investors Pull Cash Out of Bond Funds Mutual-fund investors continued to pull money out of bond funds in the latest week, and they weren’t just fleeing muni funds. For the first time in two years, they were also shedding corporates and Treasurys. The Investment Company Institute reported Wednesday that $1.66… Continue reading Mutual Fund Flows
Newsclips
Owners’ Equivalent Rent & Inflation
December 16, 2010
The Wall Street Journal – Inflation Still Muted; Factory Output Grows Inflation remained extremely low in November, despite signs of a strengthening economic recovery, while industrial production saw its largest gain in four months. The consumer price index rose 0.1% for the month, putting it up just 1.1% from a year earlier, the Labor Department… Continue reading Owners’ Equivalent Rent & Inflation
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‘Tis The Season
December 16, 2010
The Financial Times – December rally a portent of a good 2011 The strong rally in UK and European stocks over the past month underlines the seasonal nature of equity markets – and there are good reasons for investors to look towards 2011 with confidence, says Philip Isherwood, European equity strategist at Evolution Securities… He… Continue reading ‘Tis The Season
Newsclips
Interpreting Higher Rates
December 16, 2010
MarketBeat (WSJ Blog) – The Great Rate Debate: Interpreting Bond Yields As we mentioned before, the move higher in bond yields is something of a Rorschach test for market watchers. They see what they want in the meanderings of these different lines. Here’s some of what we’re seeing from around the web on the most… Continue reading Interpreting Higher Rates
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Europe
December 16, 2010
The Financial Times – Mohamed El-Erian: Germany is playing politics as Europe drowns Pity Germany. It goes to Thursday’s two-day European summit in Brussels in a visible lose-lose situation, and with no easy way out of a complex dilemma that pits good politics against bad economics. Its hard-fought economic gains, earned over many years through… Continue reading Europe
Newsclips
Capital Requirements
December 16, 2010
The Wall Street Journal – Banks Falling Short of Basel Requirements The world’s largest banks need to raise about €577 billion ($762.85 billion) in capital to comply with new global regulatory standards, the Bank for International Settlements said Thursday. In a survey published alongside the official texts of its new rules on capital and liquidity… Continue reading Capital Requirements
Newsclips
Cartoons
December 16, 2010
None Today
Newsclips
The Federal Reserve
December 15, 2010
The Wall Street Journal – Fed Sticks to Bond-Buying Policy Central Bank Keeps Rates Low, Says Economy Recovering but Not Fast Enough to Cut Jobless Rate New retail sales data showed consumers kicked off their holiday shopping with a burst of spending, leading many private economists to raise their forecasts for economic growth. Economists expect… Continue reading The Federal Reserve
Newsclips
Europe
December 15, 2010
<Click on chart for larger image> Comment As the chart above shows, things are not getting better with Spanish debt. Bloomberg Businessweek – Spain Aa1 Rating Put on Review by Moody’s on Eve of Bond Sale Spain’s credit rating may be cut from Aa1, Moody’s Investors Service said, as the government prepares its final bond… Continue reading Europe
Newsclips
Rising Interest Rates
December 15, 2010
The Financial Times – Martin Wolf: Why rising rates are good news Terrified by irresponsible fiscal and monetary policies, the bond market vigilantes are out in force. So rose the cry, as rates on government bonds jumped last week. Alas for the panic-mongers, this glib story is nonsense. What is happening is a move towards… Continue reading Rising Interest Rates