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LIBOR Is A Meaningless Number
September 7, 2010
<Click on chart for larger image> The Wall Street Journal – Libor Falls as Banks Sit on Cash A closely watched indicator of credit-market stress has fallen to its lowest level in five months. But the decline may be more a sign of bank caution than an all-clear for financial markets. The three-month dollar London… Continue reading LIBOR Is A Meaningless Number
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Government Manipulation In The Markets
September 7, 2010
The Financial Times – Lex: Financial repression Investors expect and fear deflation. That, at least, is a common explanation for the current low yields on government bonds. Maybe, but in the US and UK these markets cleared at higher yields during the Great Depression when deflation was actual and sharp, not merely potential. There could… Continue reading Government Manipulation In The Markets
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Support Housing Or Let It Fall?
September 7, 2010
The New York Times – Housing Woes Bring a New Cry: Let the Market Fall The unexpectedly deep plunge in home sales this summer is likely to force the Obama administration to choose between future homeowners and current ones, a predicament officials had been eager to avoid. Over the last 18 months, the administration has… Continue reading Support Housing Or Let It Fall?
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Dividend Yields
September 7, 2010
<Click on chart for larger image> Bloomberg.com – Dividends Beating Bond Yields by Most in 15 Years More U.S. stocks are paying dividends that exceed bond yields than any time in at least 15 years as profits rise at the fastest pace in two decades…The last time the number of S&P 500 companies paying dividends… Continue reading Dividend Yields
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Another Look At European Stress Tests
September 7, 2010
The Wall Street Journal – Europe’s Bank Stress Tests Minimized Debt Risk Europe’s recent “stress tests” of the strength of major banks understated some lenders’ holdings of potentially risky government debt, a Wall Street Journal analysis shows. As part of the tests, 91 of Europe’s largest banks were required to reveal how much government debt… Continue reading Another Look At European Stress Tests
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Risk On/Risk Off
September 7, 2010
The Wall Street Journal – Where’s the Appetite for Risk? Whether last week’s run-up was the start of a fall rally or just another surge to be followed by an equivalent decline depends on a series of factors. Some are based on the economy and others are tied to the behavior of investors, who remain… Continue reading Risk On/Risk Off
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Has Economics Made Any Progress?
September 7, 2010
The Financial Times – Sweep economists off their throne Yet economists seem unlikely to abandon the belief that theirs is a discipline that makes “progress” and settles issues, in a way that resembles a hard science such as physics or chemistry. Ben Bernanke, the current head of the Federal Reserve, exemplified this belief in a… Continue reading Has Economics Made Any Progress?
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Commodity Speculation
September 7, 2010
The Wall Street Journal – Speculative Activity in Commodities Is Likely to Continue Speculative investors are likely to remain a force in commodities markets despite signs that the big banks are bowing out. The exits by J.P. Morgan Chase & Co.’s and Goldman Sachs Group Inc. from proprietary trading sent a message that Wall Street… Continue reading Commodity Speculation
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Scary Talk
September 7, 2010
The Telegraph (UK) – No defence left against double-dip recession, says Nouriel Roubini The United States, Japan and large parts of Europe have exhausted their policy arsenal, leaving them defenceless against a double-dip recession as recovery slows to ‘stall speed’. “The US has run out of bullets,” said Nouriel Roubini, professor at New York University,… Continue reading Scary Talk
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Insider Buying/Selling
September 7, 2010
Bloomberg.com – John Dorfman: Insiders Give Away Their Thoughts When Buying One stock market indicator that doesn’t get enough attention is the purchase or sale of company shares by insiders. Most investors — professionals and amateurs alike — seem to pay scant attention to these transactions. I think such trades give useful cues for stock… Continue reading Insider Buying/Selling
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Cartoons
September 7, 2010
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