The Financial Times – Lex: US small caps The big boys grab the headlines but the US earnings season is also under way for thousands of small-cap stocks you will never read about. It is a pity. The prospect of third-quarter results this week from Winnebago, WD-40 and Bank of the Ozarks tickle the imagination… Continue reading Small Caps
Conference Call Presentation/Charts of the Week Topics Covered This Week Include: QE – What Does The Market Expect? How Did Dudley Arrive At $500 Billion For QE2? How Did Dudley Arrive At $500 Billion For QE2? – 2 Why Is The Federal Reserve Considering QE2? Why No Record Refis? How Well Has QE Worked So… Continue reading Untitled
Comment We agree that Friday’s speech is an important one. The Federal Reserve seems hell-bent on starting QE2 by the end of the year. Why are they doing it? How will it help the economy? When will they know if they did enough, or too little? None of these questions have been answered. Hopefully Bernanke… Continue reading The Federal Reserve And QE2, Why Are They Doing It?
The Financial Times – Martin Wolf: Why America is going to win the global currency battle Above all, today’s low and falling inflation is potentially calamitous. At worst, the economy might succumb to debt-deflation. US yields and inflation are already following the path of Japan’s in the 1990s (see chart). The Fed wants to stop… Continue reading Currencies
<Click on image for larger picture> The Big Picture (Blog) – Why Foreclosure Fraud Is So Dangerous to Property Rights There seems to be a misunderstanding as to why the rampant and systemic foreclosure fraud is so dangerous to American system of property rights and contract law. Some of this is being done by people… Continue reading Foreclosure Fraud
<Click on chart for larger image> Bloomberg.com – Frank Aquila: Stimulus of $1 Trillion Adds Zero to Deficit Unlike most countries, the U.S. taxes the profits earned overseas by its corporations. The federal tax code then defers the tax on the non-domestic profits until the corporation brings those profits into the U.S. Since repatriating these… Continue reading More Stimulus!
<Click on picture for larger image> The New York Times – Across the U.S., Long Recovery Looks Like Recession Less than a month before November elections, the United States is mired in a grim New Normal that could last for years. That has policy makers, particularly the Federal Reserve, considering a range of ever more… Continue reading The New Normal
Bloomberg.com – Matthew Lynn: Home Prices Are Love Affair Heading for Rocks U.K. house prices are still overvalued, and are a threat to the nation’s future. The property market is a distraction from the work of rebuilding an economy toward one based on manufacturing and exports. And the vast wealth created by the real-estate boom… Continue reading Housing in The U.K.
None Today
CNBC – Fed Certain to Act in November In a Big Way: Survey Nearly 93 percent of the 70 respondents, including economists, fund managers and traders, believe the Fed will boost the size of its portfolio, up from 69 percent in the survey two weeks ago. Of those who expect the Fed to move, 86… Continue reading How Big Will QE2 Be?
<Click on chart for larger image> MarketWatch – Inflation-linked bonds show more concerns than Fed The bond market is more worried about inflation than the Federal Reserve. Inflation-protected securities, and the exchange-traded funds and mutual funds based on them, are rallying as investors in all asset classes are increasingly convinced the Fed will restart large… Continue reading Inflation Fears