<Click on chart for larger image> MarketWatch.com – Rex Nutting: Housing is the forgotten crisis Falling prices once again threaten economy The U.S. economy has made a lot of progress since the dark days of September 2008 — investors are happy, bankers are secure, markets are functioning and businesses are flush. No depression here. But… Continue reading Have We Forgotten About Housing?
<Click on chart for larger image> The Wall Street Journal – Muni Bonds Continue to Tumble A Rush to Sell Build America Bonds Before They Are Gone Prices of municipal bonds fell sharply for the second day Tuesday, driving yields on long-term bonds to the highest points in more than 18 months, as investors worried… Continue reading Munis
<Click on chart for larger image> Telegraph.co.uk (UK) – US will lose AAA credit rating, says M&G’s Jim Leaviss Jim Leaviss, head of retail fixed interest at M&G, the fund management arm of the Prudential, said France remains “the AAA economy closest to a downgrade” and that the US “will lose its AAA rating –… Continue reading Will The U.S. Lose Its AAA Credit Rating?
Bloomberg.com – Caroline Baum: Why the Left Hates Tax Cuts for the Wealthy “Odious” is how senior adviser David Axelrod described President Barack Obama’s acquiescence to extending tax cuts for the rich as part of a deal struck with congressional Republicans. Just think about that for a moment. In order to secure the GOP’s support… Continue reading The Tax Cuts
The Financial Times – Junk bonds’ new appeal shows little sign of fading Junk bonds will feature prominently in this year’s accolades. A record amount of debt, more than $300bn in new bonds, has been sold by companies with credit ratings below “investment grade”. Junk bonds, rebranded by Wall Street as “high-yield bonds” after scandals… Continue reading Are Junk Bonds The Best Investment?
Fortune.com – Will the Fed be able to survive Ron Paul? If there’s anything to be said about U.S. Congressman Ron Paul, he sure is persistent. And lately, that inner flame that’s helped him gain the reputation for sometimes being the “G.O.P. loner” appears to be paying off. The soft-spoken obstetrician has represented the 14th… Continue reading End The Fed!
Conference Call Presentation/Charts of the Week Topics Covered This Week Include: Bond Bearishness Always And Everywhere J.P. Morgan Survey – Also A Bearish Slant Nominal GDP And Interest Rates The Fed’s Favorite Measure Of Inflation Expectations Inflation Expectations Inflation Expectations – 2 The Economy And QE How Did The Federal Reserve Arrive At $600 Billion?… Continue reading Untitled
The Financial Times – Lex: Federal offensive The Federal Open Market Committee meets on Tuesday for its last discussion of monetary policy this year. There is much to talk about. Since the second round of quantitative easing bond purchases (QE2) started, bond yields have risen sharply… However, things are not as bad as the plot… Continue reading What Are The Odds QE2 Could End Early?
The Financial Times – Commodities go backwards to futures As demand for food, fuel and industrial materials has rebounded, and inventories are rapidly being drawn down, commodities from gasoline and copper to sugar and cotton have shifted into backwardation; now crude oil, the most heavily weighted commodity in most investors’ portfolios, is flirting with the… Continue reading The Effect Of Backwardation On Commodity Returns
The Financial Times – US muni market braced for end of subsidy A grim acceptance has fallen across the $2,800bn municipal bond industry that a popular subsidy programme is likely to expire at the end of this month, leaving behind potentially higher borrowing costs for cash-strapped states, cities and other public entities. Expectations that an… Continue reading Build America Bonds Coming To An End?
The Wall Street Journal – As Rates Increase, Fed’s Resolve Likely to Rise, Too Of course, the Federal Reserve’s latest round of policy easing is working. Haven’t you seen the stock market lately? Fed policy makers meeting Tuesday aren’t explicitly mandated with boosting share prices. But it clearly is one desired outcome of their estimated… Continue reading Interest Rates On The Rise