FT Alphaville (FT Blog) – S&P 500 curiosity, du jour This is the first time in twenty-five years that a three-month gain in the S&P 500 of 10% or more was not accompanied by net inflows into U.S. equity mutual funds and ETFs. While individuals may have overcome, to some degree, their distrust of the… Continue reading Defying Gravity
Zero Hedge (Blog) – Dallas Fed’s Fisher Stunner: Admits Worries Fed Has Created Nothing But Bubbles The war of words continues, this time with Dallas Fed’s Fisher. More quotes from the fourth spoke in the Kocherlakota, Plosser, Hoenig, hawk sanity quadrangle. In his just released speech we read this stunner: “In my darkest moments, I… Continue reading Has The Federal Reserve Created Nothing But Bubbles?
Bloomberg.com – Pimco Says U.S. Economy Will Disappoint With 1.75% Growth The U.S. economy will disappoint investors by expanding at a rate of 1.75 percent over the next year, said Ramin Toloui at Pacific Investment Management Co., which runs the world’s biggest bond fund. The risks are skewed toward even slower growth, Toloui, an emerging… Continue reading Where Is The Economy Headed?
Bloomberg.com – Patrick Chovanec: China Hides Rampant Inflation in Money Binge Money, money everywhere. At least that’s what it feels like at the moment in China. Awash in luxury cars, condos and expensive jewelry, the Chinese are enjoying what looks to be an unstoppable boom. But inflation figures due to be released tomorrow should give… Continue reading Inflation In China
The New York Federal Reserve – Regional Economy and Housing Update I’ll end with a few remarks about New York City’s housing market—a very large market that stands out as unique in many respects. Let me remind you of some of these key differences: Compared with the rest of the region, and with the rest… Continue reading New York’s Housing Market And Economy
None Today
The Wall Street Journal – David Malpass: How the Fed Is Holding Back Recovery Congress will face a runaway train on taxes and spending when it reconvenes after the elections. The solution is to restrain both—especially to stop the $6 trillion tax increase scheduled to take place on Jan. 1—in order to restore business confidence… Continue reading The Federal Reserve & QE2
<Click on chart for larger image> The Wall Street Journal – China Remains No. 1 China remained a net buyer of U.S. Treasurys in August for a second straight month, amid overall inflows into long-term U.S. assets, the Treasury Department said Monday. China’s holdings jumped $21.7 billion to $868.4 billion, remaining ahead of Japan as… Continue reading China Remains Top Foreign Holder Of U.S. Debt
Bloomberg.com – NYSE Breaks Trades of S&P 500 ETF at 9.6% Below Opening Price Regulators can add a faulty software update at NYSE Euronext’s electronic Arca stock market to the list of mishaps that have weighed on investor confidence. A system upgrade at Arca triggered what appeared to be a 9.6 percent plunge yesterday in… Continue reading Was There A Flash Crash Yesterday?
The Wall Street Journal – Banks Restart Foreclosures Two major lenders at the center of the foreclosure crisis took steps Monday to put the mess behind them by restarting home seizures that were frozen by documentation concerns. Bank of America Corp. reopened more than 100,000 foreclosure actions, declaring that it had found no significant problems… Continue reading The Foreclosure Mess
The Wall Street Journal – Prices Squeeze Main Street Some U.S. retailers are caught between frugal consumers and escalating costs. Inflation on consumer items is so low that the Federal Reserve sees a risk of deflation, a spiral of falling prices and wages. But the prices of some commodities, driven by demand from China and… Continue reading Inflation vs. Deflation
Reuters – Geithner vows U.S. will not devalue dollar Treasury Secretary Timothy Geithner vowed on Monday that the United States would not devalue the dollar for export advantage, saying no country could weaken its currency to gain economic health. “It is not going to happen in this country.” Geithner told Silicon Valley business leaders of… Continue reading Currency Wars