Global Market Commentary, Analysis and Investments
When things are going well, people vote for the status quo.
When they aren’t going so well, they move farther out on the political spectrum. In France, a couple of years ago, both Melenchon on the far left and Le Pen on the far right were considered “politically dead.” Now, a few years of crisis have brought them both back to life.
[Read more...]This will be our last Daily Reckoning until April 17th.
So, what well-chosen words can we leave you with?
How about “if,” “but” and “maybe?”
Yes, dear reader, if everything continues to clunk along as it is today…maybe the world financial system will hold together until we get back.
[Read more...]The Dow down 97 points yesterday.
And the Greek story nears its conclusion…
The Germans agree to bail out the country…at least for a while…
…and the Greeks agree to act more like Germans…at least while everyone is looking…
But now everybody agrees that the farce has gone on long enough.
[Read more...]The Greek crisis has been solved…again. Let’s see…that’s probably about 24 “solutions” during the last 24 months.
But since these solutions never seem to solve anything, Europe’s central bankers, technocrats and politicians get to huddle together every few weeks and solve the crisis over and over again. It’s kind of like Disneyland for euro-meddlers. They get to keep going on their favorite ride over and over again.
[Read more...]As Chuck wrote yesterday, the markets were feeling confident that an agreement on a second financing accord for Greece was going to be finalized yesterday. The euro (EUR) continued to rally on the news through most of the day, but the talks stumbled over the issue of pension cuts, and EU/IMF officials had to give Greece 15 more days to come up with additional cuts. The delay in an agreement caused the euro to retreat from the two-month highs against the dollar, moving back into the $1.32 handle after trading as high as $1.3313. But there is still confidence an agreement will be met, as the parties have agreed on all the issues except a 300 million euro reduction in pension benefits.
[Read more...]The Dow dropped 297 points yesterday. October may have been the best month for stocks in 37 years. But November could be the worst.
Gold fell a little yesterday, too, down $13. Oil is still over $90.
The newspapers tell us that investors are disappointed over the European deal. They thought they had that problem wrapped up with a bow. Apparently not…
[Read more...]The euro (EUR) has gotten swatted back to the corner it came from after the Grand Plan was announced last Wednesday night… The single unit is doing the rope-a-dope, and fighting to stay on terra firma, but to no avail… The scary creature from Greece has deep-sixed the euro and thus the other currencies, even yen (JPY), Swiss francs (CHF), and gold…
[Read more...]When I clicked on the currency screens this morning, the euro (EUR) was doing well, trading around 1.4525, but then a cat was thrown among pigeons, when it was announced that the Eurogroup meeting scheduled for July 3, had been cancelled. That really threw the markets for a loop… And the euro lost 1/2-cent in a NY minute… But, it looks like it was a knee-jerk reaction to the news, and the euro is trading back to 1.45 at the moment…
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The Burgeoning Scam Market
“Monetary policy cannot fulfill each and every market expectation.”
So said the head of the Bundesbank, Jens Weidmann.
Why not, investors want to know.
Mr. Weidmann was talking to The Wall Street Journal. He was explaining why Germany was sticking to its guns. They don’t use that expression in Germany. But you know what he meant.
[Read more...]