Here we are… The last couple of days of January… So the first month of 2012 is just about over, and already, we’ve heard the Fed push their rate forecast for near zero rates out further, and the Fed laying the groundwork for another round of QE… But… When we began the month/year, everyone was pounding their chests, and talking about what a great year 2012 would be (economic-wise)… Talk about deflating the balloon in the first month of the year!
[Read more...]Demand Fears in a Consumer-Based Economy
January 25, 2012 By Leave a Comment
Yesterday, Europe was back in the news. Whenever Europe is in the headlines, the headlines are bad. And the ideas behind the headlines are absurd. In fact, it is amazing how many crackpot ideas the press can throw at you in a single day.
The immediate problems in Europe were two:
First, it looked like Portugal was going the way of Greece. It would soon need another bailout, said the papers.
[Read more...]The European Debt Crisis, Two Years On
November 10, 2011 By Leave a Comment
No doubt, most Daily Reckoning readers are aware of yesterday’s shocking headlines: Mariah Carey lost 70 pounds…and Taylor Swift won the Country Music Award for “Entertainer of the Year.”
Meanwhile, the European Union continued to unravel faster than a Kardashian marriage.
[Read more...]A Bull Market in Uncertainty
November 9, 2011 By Leave a Comment
If you meet the Buddha, kill him.
— Linji
Markets in the US and Europe closed higher yesterday. The Dow ended up about 100 points. Newswires — forever quick to publish and always slow to think — claimed investors were cheering the resignation announcement from Silvio Berlusconi. The late afternoon rally was a “roaring approval” of the Italian prime minister’s move, they reported.
[Read more...]Greek and Italian Turmoil Negatively Affect the Euro
November 9, 2011 By Leave a Comment
Right off the bat, this is going to be super short and sweet this morning as Chuck was feeling under the weather last night and asked me to step in with some of the market headlines from this morning and last night. The market moving headlines yesterday and through today so far have been primarily European in nature, as Italy is beginning to steal the spotlight away from Greece in the debt crisis du jour. Since Italy is a bigger fish in the Eurozone than Greece, the levels of concern have been on the rise.
[Read more...]Printing Money to Combat a Global Depression
November 7, 2011 By Leave a Comment
Last week produced nothing but more disappointment. At the center of it was the Europeans’ inability to make their debt disappear. They had hoped that they could just announce a plan to take care of it…and that would be enough.
But then, the Greeks said they wanted to vote on it…and then, they didn’t. ‘Papandenomium,’ the papers called it. If the voters were allowed to give their opinions everybody knew what would happen; the whole fix would be unfixed quix. So, they all got together and twisted Papandreou’s arms…and his arms gave way.
[Read more...]Printing Money to Combat a Global Depression
November 7, 2011 By Leave a Comment
Last week produced nothing but more disappointment. At the center of it was the Europeans’ inability to make their debt disappear. They had hoped that they could just announce a plan to take care of it…and that would be enough.
But then, the Greeks said they wanted to vote on it…and then, they didn’t. ‘Papandenomium,’ the papers called it. If the voters were allowed to give their opinions everybody knew what would happen; the whole fix would be unfixed quix. So, they all got together and twisted Papandreou’s arms…and his arms gave way.
[Read more...]Printing Money to Combat a Global Depression
November 7, 2011 By Leave a Comment
Last week produced nothing but more disappointment. At the center of it was the Europeans’ inability to make their debt disappear. They had hoped that they could just announce a plan to take care of it…and that would be enough.
But then, the Greeks said they wanted to vote on it…and then, they didn’t. ‘Papandenomium,’ the papers called it. If the voters were allowed to give their opinions everybody knew what would happen; the whole fix would be unfixed quix. So, they all got together and twisted Papandreou’s arms…and his arms gave way.
[Read more...]
Currencies Hold Ground Ahead of Jobs Jamboree
This morning, the currencies look pretty much like they did yesterday when I left the office… There’s still the Sword of Damocles hanging over the euro (EUR), in the form of Greek negotiations to obtain help from private lenders. This has dragged on now for over two weeks, and I’ve given up on it happening… You only have to disappoint me twice before I get the message!
[Read more...]