Newsclips
Cartoons
November 9, 2010
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Either the economy is going to get better by itself in the next three months…What assets are going to do well? Stocks are going to do well, bonds won’t do so well, gold won’t do as well. Or the economy is not going to pick up in the next three months and the Fed is… Continue reading POMO’s Positive Effect … On Everything
Bloomberg.com – CEOs Most Optimistic on U.S. Profits in Bull Signal for S&P 500 More U.S. executives than ever are increasing earnings forecasts compared with those lowering them, helped by almost $2 trillion of Federal Reserve spending and a recovery in the global economy. EBay Inc., United Parcel Service Inc. and 196 other companies raised… Continue reading Company Guidance Is NOT A Leading Indicator
Comment In this extended interview Barton Biggs is in favor of QE2 and Bill Fleckenstein is against it. It is an interesting interview and worth watching. That said, what struck us was a statement Barton said starting at 10:50 about QE2: How it is going to play out in the long run I don’t know… Continue reading Barton Biggs Speaks The Truth
The Wall Street Journal – Kevin M. Warsh: The New Malaise and How to End It Given what ails the economy, additional monetary policy measures are poor substitutes for more powerful pro-growth policies. Lower risk-free rates and higher equity prices—if sustained—could strengthen household and business balance sheets, and raise confidence in the strength of the… Continue reading Criticizing QE2 – From Inside The Federal Reserve
The Wall Street Journal – Germany Criticizes Fed Move Finance Minister Says Policy ‘Doesn’t Add Up,’ Sees U.S. Model in ‘Deep Crisis’ . German officials, concerned that Washington could be pushing the global economy into a downward spiral, have launched an unusually open critique of U.S. economic policy and vowed to make their frustration known… Continue reading Criticizing QE2 – From Outside The Federal Reserve
<Click on chart for larger image> The New York Times – Irish Debt Woes Revive Concern About Europe When interest rates soared last week on Irish government bonds, it served as a grim warning to other indebted nations of how difficult and even politically ruinous it could be to roll back decades of public sector… Continue reading Ireland Keeps The Dollar From Collapsing Against The Euro
The Associated Press – Banks fail in Md., Calif., Wash.; 143 total in ’10 Regulators close banks in Md., Calif., Wash.; 143 US failures this year exceed all of 2009 Regulators shut down four banks Friday, bringing the total of 2010 failures to 143. That tops the 140 shuttered last year and is the most… Continue reading Bank Failures Set A Record
The New York Times – Fed Chief Defends Action in Face of Criticism The Federal Reserve chairman, Ben S. Bernanke, on Friday defended the central bank’s decision to inject $600 billion into the American economy, in the face of objections from European and Asian officials about the weakening of the dollar that is likely to… Continue reading Bernanke’s Recent Forecasting History
Reuters – Zoellick seeks new gold standard debate – report Leading economies should consider readopting a modified global gold standard to guide currency movements, said World Bank president Robert Zoellick. Writing in the Financial Times, Zoellick said a “Bretton Woods II” system of floating currencies is needed to replace the Bretton Woods fixed-exchange rate regime… Continue reading A New Gold Standard?
The Wall Street Journal – Low Interest Rates Hurt Insurers’ Bottom Line The record-low interest rates that have been a boon for borrowers are becoming a major headache for insurance companies, which are warning of lower profitability if rates stay at current levels through next year or beyond. Insurers Hartford Financial Services Group Inc., MetLife… Continue reading Insurance Companies Hurt By Low Rates
Bloomberg.com – Bernanke Invokes Friedman’s Inflation-Fighting Legacy to Defend Stimulus Federal Reserve Chairman Ben S. Bernanke invoked the inflation-fighting legacy of the late Nobel laureate economist Milton Friedman and, for the third time in as many days, defended the Fed’s expansion of record stimulus. Bernanke, speaking yesterday at a conference in Jekyll Island, Georgia, responded… Continue reading Making Milton Friedman Proud … Or Not