There’s no sweet sound for the currencies and metals coming from the eurozone, as the Greek debt debacle does its best imitation of the Energizer Bunny! UGH! Yesterday, the euro (EUR) was in the mood to party, after China said they would help the eurozone, but then the US traders came in and said, “No, Greece is still hanging on the euro like a cheap suit.” And they proceeded to begin slashing away at the euro, which brought the other currencies along for the euro’s trip to the woodshed.
[Read more...]Where to Wait Out the Great Correction
February 15, 2012 By Leave a Comment
Tired of running out of time and money? Scrimping and saving just to make ends meet?
Try moving to Harlingen, Texas. The cost of living there is only about 40% of the cost of living in Manhattan.
Here’s Real Time Economics with a report:
Obama has spoken about having the rich pay their fair share, and $250,000 is a lot of money. But to characterize those households that earn that sum as “rich” depends very much on where they live. Thanks to regional differences on costs, $250,000 does not go so far in places like New York City and Honolulu, compared with cities in Texas or Tennessee.
[Read more...]Moody’s Downgrades Six Eurozone Nations
February 14, 2012 By Leave a Comment
Yesterday, Chris told you about how the Greek Parliament had approved the latest round of budget cuts, which should have put the next bailout payment on the greased tracks. Chris also explained how this was causing a reversal of the short positions in the euro, which really had turned the “risk on” campers. Well, that euphoria in the currencies and metals was short-lived, because just as soon as the currencies were ready to tell the “shorts” to move over, the ratings agencies came swooping in to rain on the risk assets parade.
[Read more...]The Greek Parliament Bails Out the Markets
February 13, 2012 By Leave a Comment
The Greek Parliament approved the austerity measures yesterday, giving traders the confidence to head back into the markets. We will have a fairly big week of economic data releases here in the U.S., which should help keep things interesting. Lots to cover, so I better get going if I am going to get this delivered on time!
[Read more...]Economic Growth in the New Millennium
February 10, 2012 By Leave a Comment
Wow! That was quick!
“Greek Bailout at Risk as Party Pushes Back,” reports Bloomberg.
“Greece Plunged Into Political Turmoil Over Austerity Measures,” chimes The New York Times.
“Greek government hit by resignations,” adds the FT.
We spilled a good deal of virtual ink in yesterday’s issue casting doubt and aspersions over the validity of the Greek bailout plan. The story, we reckoned, was at best an old one…at worst an irrelevant one. Bailout or no bailout, the Greeks are broke. The rest is merely noise.
[Read more...]Watching the Greek Debt Episode of the Global Soap Opera
February 9, 2012 By Leave a Comment
A serious question, Fellow Reckoner: Would you, if given the choice, be alive at any other time?
We’ll get back to that in a second. First, our regular beat…
Markets went precisely nowhere yesterday. It was as if everyone agreed to stay home…or go fishing…or to become reacquainted with that strange person living in their house and sleeping in their bed. Among other things, investors are waiting to see what happens with Greece. We’ll save them some time. Nothing will happen. Nothing different, anyway. Here’s Bloomberg, with more news on the same old story:
[Read more...]Currencies Hold Ground Ahead of Jobs Jamboree
February 3, 2012 By Leave a Comment
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...]Greece Disappoints Again!
January 30, 2012 By Leave a Comment
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...]
A Greek Debt Crisis Recap
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...]