Global Market Commentary, Analysis and Investments
No panic on Wall Street — yet. Gold still over $1,600.
But watch out. Our hunch is that when people come to their senses…they will run for the exits.
Europe’s shifting from austerity to “growth”…which really means more debt.
America’s growth is phony — with fewer jobs today than when the ’08 recession began.
[Read more...]“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...]The gyrations and volatility continue in the markets — one day up, the next day down. One day a piece of data matters; the next day it doesn’t. But we carry on in spite of these daily movements back and forth.
For instance, the euro (EUR) is rallying this morning, which gives all the other currencies a chance to spread their wings. Spain was able to auction their target maximum amount of euro bonds this morning, and while the yield rose from the last time 10-year bonds were auctioned, the fact that the whole allotment went off without a hitch is giving the euro some breathing room this morning.
[Read more...]Good day. Mondays have always been the most-trying day for my brain cells, as it’s our largest day of risk management in World Markets. That means I have to be “on top of my game” on Mondays, and then I go home mentally exhausted. Well, I thought those types of days would be over, with our brand-spanking-new computer system. Eventually, it will be better. I know it.
[Read more...]The risk assets are still getting taken to the woodshed this morning, and once again, even stocks are getting sold. So there’s nowhere to hide these days from the dollar. Even Treasuries aren’t seeing a steady flow to them these days. So David Freese isn’t the only one swinging a big stick these days; the dollar has one, too!
[Read more...]Dow up 45 points on Friday. The 10-year T-note right on the 2% yield mark.
Almost all the news is good. It looks like recovery is finally here.
Or, are we just getting used to a punky economy…where even a little improvement looks like a boom?
As far as we know, the US economy is still in a Great Correction…with plenty more correction ahead.
[Read more...]Get out your chopsticks! Brush up on your sushi! Learn to read backwards and upside down!
Yes…we’re going to Japan!
The gist of the Japanese situation is this:
The bubble burst in 1990. But rather than let their big businesses go belly up, the Japanese used every trick in the book. Counter-cyclical deficits up the Shinanho. ZIRP (zero interest rate policy). And QE too.
[Read more...]“Americans think we are stupid,” said a European diplomat at a dinner party in Washington. ”But we’re not stupid. We’re just working out the problems involved in forming what you might call ‘a more perfect union.’”
“Well, you can unify all you want…it won’t make your debts go away,” we replied. We always try to be a cheery presence at dinner parties…especially in Washington.
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GDP Growth: The Civic Duty of Every US Consumer
No panic on Wall Street — yet. Gold still over $1,600.
But watch out. Our hunch is that when people come to their senses…they will run for the exits.
Europe’s shifting from austerity to “growth”…which really means more debt.
America’s growth is phony — with fewer jobs today than when the ’08 recession began.
[Read more...]