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How Much Will The Federal Reserve “Print” During QE2?

October 1, 2010

Reuters.com – Dudley: More Fed action warranted unless outlook improves William Dudley, president of the Federal Reserve Bank of New York, said current conditions of high unemployment and low inflation are “wholly unacceptable”. “Further action is likely to be warranted unless the economic outlook evolves in such a way that makes me more confident that… Continue reading How Much Will The Federal Reserve “Print” During QE2?

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Ireland

October 1, 2010

The Economist – The euro zone’s trouble spots: The bottomless bail-out Ireland counts the rising cost of rescuing its banks This twisted logic seems now to apply to one of Europe’s most troubled economies. Ireland looks like an abstemious jogger that has suffered a heart attack. The yield on its ten-year government bonds neared 7%… Continue reading Ireland

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Are Emerging Markets The Next Bubble?

October 1, 2010

The Economist – Buttonwood: The last great hope Emerging markets may be the next bubble Those dreams may have been shattered. But hope springs eternal. There is still one great hope left for investors: emerging markets. Fund managers have been making the case for emerging markets on a regular basis over the past 20 years.… Continue reading Are Emerging Markets The Next Bubble?

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Silver

October 1, 2010

The economist – Precious metals: Silver lining Gold’s poor relation is on a winning streak AT THE first Olympic games of the modern era in 1896, winners were awarded silver medals. Since then the metal has had to get used to second-class status. But for some time now silver prices have been outpacing those of… Continue reading Silver

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Newsclips

Taleb Speaks His Mind

October 1, 2010

The Atlantic – Nassim Taleb: Don’t Listen to Geithner or Krugman Since Tim Geithner did not predict the economic crisis, Nassim Taleb has no interest in listening to him talk about it now. The author of The Black Swan, a book about risk and probability theory, told National Journal’s Matthew Cooper that he did not… Continue reading Taleb Speaks His Mind

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Jim Grant Speaks

October 1, 2010

Bloomberg.com – Grant Says U.S. `On the Road’ to Socialization of Credit James Grant, editor of Grant’s Interest Rate Observer, talks about the overhaul of U.S. financial regulation. Grant also discusses Federal Reserve monetary policy. He talks with Pimm Fox on Bloomberg Television’s “Taking Stock.”

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Newsclips

Flash Crash – Blaming The Last Car On The Bridge Before The Collaspe

October 1, 2010

Bloomberg.com – Waddell & Reed E-Mini Trades Said to Help Trigger May 6 Crash A mutual fund’s routine effort to hedge against losses helped set off a chain of events that turned an orderly selloff on May 6 into a crash that erased $862 billion in U.S. equity value in less than 20 minutes, according… Continue reading Flash Crash – Blaming The Last Car On The Bridge Before The Collaspe

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S&P Has A Bad Spreadsheet

October 1, 2010

Bloomberg.com – S&P `System Error’ Sparks Changes in U.S. Residential Mortgage-Bond Grades Standard & Poor’s, the credit- rating firm criticized for certain AAA rankings it assigned to U.S. mortgage bonds, said it downgraded 224 classes of the securities after discovering a “system error.” The company reviewed ratings on bonds created through 50 securitizations that bundled… Continue reading S&P Has A Bad Spreadsheet

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Newsclips

Cartoons

October 1, 2010

None Today

Market Talk

Who Is Buying Treasuries?

September 30, 2010

With U.S. Treasury issuance skyrocketing over the past couple years, yields at new all-time lows and talk of a bond bubble rife, we are often asked, “Who is buying all this Treasury debt?”  Below are a series of charts that attempt to answer this question. Foreign Buyers When asked who is buying Treasury debt, people… Continue reading Who Is Buying Treasuries?

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Newsclips

Do Dividends Matter? Maybe Not!

September 30, 2010

MarketBeat (WSJ Blog) – Here’s Why You Should Care about Dividends: ‘Bladder Theory’ A particularly pesky commenter has been tagging some our recent flurry of dividend-focused posts with this question: “Why do people care about the dividend yield? Doesn’t Modigliani-Miller imply we shouldn’t care except for tax reasons? And for tax reasons, it seems no… Continue reading Do Dividends Matter? Maybe Not!

Newsclips

Is The Federal Reserve Pushing On A String In The Mortgage Market?

September 30, 2010

The Financial Times – Lex: US mortgages Hardly any of the estimated 30m American homeowners who are failing to take advantage of record low mortgage rates are familiar with the phrase “pushing on a string”, a metaphor for the limits of monetary stimulus. Many are nearing the end of their rope though. Rates have continued… Continue reading Is The Federal Reserve Pushing On A String In The Mortgage Market?