San Francisco Federal Reserve – Fed Views, October 14, 2010 Japan’s experience beginning in the early 1990s underscores the risk of getting into a long period of sustained disinflation. Japan fell into deflation in the mid-1990s and has yet to recover. Mises.org – QE2 and the Alleged Deflation Threat The markets and financial pundits are… Continue reading Where Is The Deflation?
Felix Salmon (Reuters Blog) – When stocks become manipulable What you’re looking at here is four different ETFs, split into quintiles according to the size of their components. So the bar on the far left is the smallest 20% of stocks in the IWC microcap ETF, while the bar on the far right is the… Continue reading When Do Stocks Correlate To The Index?
CNBC – Money is ‘Pouring Out of Government Bonds’: Charts The government bond market rally is over and investors are switching their portfolios to the stock market, Royce Tostrams, technical analyst at Tostrams Groep, told CNBC Friday. “Money is now pouring out of government bonds. So my conclusion is don’t be in the bond market… Continue reading Getting The Bond Market Flows Wrong … Again!
The Washington Post – Fannie, Freddie bailout could nearly double in size The federal bailout for Fannie Mae and Freddie Mac could nearly double in size during the next three years, according to projections from the companies’ federal regulator. Fannie and Freddie, the federally controlled mortgage finance giants, will need as much as $215 billion… Continue reading Fannie/Freddie … Taking Losses So TARP Does Not Have To
Slate.com – QE2? Not QED. Why most economists are not hopeful about “quantitative easing,” the Fed’s latest idea to help the economy. The U.S. economy’s biggest problem, businesses and policymakers agree, is widespread lack of demand. If only people and companies would buy more stuff, the theory goes—a car, an office park, a forklift—then the… Continue reading Should QE2 Be Done?
DealBreaker (blog) – FX Concepts’ John Taylor Can’t Get Over The Similarities Between Hitler And Ben Bernanke John Taylor, Chief Investment Officer of FX Concepts, has been doing a lot of thinking about the economy lately and he keeps coming back to one thing– how similar things are to Europe just prior to World War… Continue reading Taking Criticism Of Bernanke To The Next Level
NBC New York – Rent Is Too Damn High Candidate Doesn’t Your rent may be too damn high, but Jimmy McMillan’s sure isn’t. The Vietnam vet stole the spotlight at the gubernatorial sideshow debate earlier this week, bellowing his campaign platform and party banner, “The rent is too damn high.” But McMillan’s indignant pontification doesn’t… Continue reading $0 Rent Is Too Damn High!
None Today
Comment Jim Bianco was on CNBC yesterday afternoon discussing the Beige Book. To view the interview click on the image above. To view any of our recent interviews click here.
The Wall Street Journal – Regulator for Fannie Set to Get Litigious The federal regulator overseeing Fannie Mae and Freddie Mac hired a law firm specializing in litigation as the agency considers how to move forward with efforts to recoup billions of dollars on soured mortgage-backed securities purchased from banks and Wall Street firms. The… Continue reading Nobody Wants To Be Left Holding The Bag In The Foreclosure Mess
The Wall Street Journal – Dilemma Over Pricing General Mills Inc. said it will increase prices next month on a quarter of its breakfast cereals as a result of rising grain and other commodity prices, illustrating the pressures more companies face to pass along sharply higher costs on everything from corn to copper. The Minneapolis… Continue reading Where’s The Deflation?
The Financial Times – Fed eyes flexible approach to stimulus Officials at the US Federal Reserve are considering a fresh monetary stimulus that would combine guidance on the provisional scale of a new programme and a time frame for buying assets with the flexibility to adjust its size at regular meetings. Although no decision has… Continue reading A Flexible Federal Reserve