The Financial Times – Lex: US housing effects On the wealth effect, even when house prices were bubbling in 2006 housing only accounted for 25 per cent of net household worth. That share is now 16 per cent. Moreover, Citigroup calculates that just 11 per cent of the $23,000bn of net household wealth created during… Continue reading Housing
The Wall Street Journal – Meredith Whitney: State Bailouts? They’ve Already Begun The threat posed by the state fiscal crisis in the U.S. is vastly underestimated and under-appreciated—because even today too few people understand how states have been managing their finances. A clear example of this took place in Manhattan last week at the Economist… Continue reading Meredith Whitney Discusses State Bailouts
<Click on picture for larger image> h/t The Big Picture and John Palmer Comment For a full-sized .pdf version of this chart please click here.
you.com – Inside the Rolling Stones Inc. The Stones are famously tax-averse. I broach the subject with Keith in Camp X-Ray, as he calls his backstage lair. There is incense in the air and Ronnie Wood drifts in and out–it is, in other words, a perfect venue for such a discussion. “The whole business thing… Continue reading Keith Richards – The Original Tea Party Man
None Today
Comment The first chart below shows the InTrade betting for the Senate. As of this writing the odds of the Democrats holding the Senate are 45% while the odds of a 50/50 split are 45%. To complete the thought, the odds of Republicans taking the Senate (meaning 51 seats) are 10%. This suggests the Senate… Continue reading A Possible Election Surprise?
Comment Jim Bianco was on Bloomberg TV yesterday discussing QE2, the elections and taxes. If you missed the interview click on the picture above. To view any of our interviews click here.
The Washington Examiner – Mark Hemingway: Unions target your private retirement savings Will the government outlaw your 401(k) plan? It seems like an absurd possibility, yet earlier this month two Democratic senators, Sen. Tom Harkin, D-Iowa, and Sen. Bernie Sanders, I-Vt., held a hearing on Capitol Hill exploring the possibility of doing exactly that. On… Continue reading Does Congress Want Your 401(k)?
CNBC.com – Bill Gross: Fed Easing May Mean 20% Dollar Drop The dollar is in danger of losing 20 percent of its value over the next few years if the Federal Reserve continues unconventional monetary easing, Bill Gross, the manager of the world’s largest mutual fund, said on Monday. “I think a 20 percent decline… Continue reading What Does QE2 Mean For The Dollar?
<Click on chart for larger image> The Financial Times – Debt costs jump for Dublin and Lisbon Borrowing costs for Ireland and Portugal shot up as investors took fright at European proposals to force them to take a greater share of losses in future state bail-outs. The moves in the bond markets on Monday follow… Continue reading CDS Update
The Washington Post – Federal Reserve’s, Bernanke’s credibility on line with new move to boost economy The Federal Reserve is preparing to put its credibility on the line as it rarely has before by taking dramatic new action this week to try jolting the economy out of its slumber. If the efforts succeed, they could… Continue reading Everyone Has An Opinion On QE2
The Wall Street Journal – QE2 No Smooth Ride For Bondholders The first round of quantitative easing proved to be a bonanza for bondholders. The second round, expected to be launched by the U.S. Federal Reserve this week, is unlikely to prove such good news. It may even knock corporate bonds off the perch they’ve… Continue reading Bonds & QE