August 28, 2012
Most will be looking at the end of the week as they anticipate a big announcement from Mr. Bernanke during his time at Jackson Hole. This annual meet up has been the time when central bankers have made some important announcements and now there is an expectation that this is going to be a slam dunk Read more
August 27, 2012
I am just so agitated by the lack of any sensibility by some of the Fed speakers. It is one thing to discuss the potential for stimulus, but another to seek an open-ended bond buying program (QE) that has not shown to have be able to bring down the unemployment rate in the past.
But, here it is…Reckless Read more
August 14, 2012
Here are some interesting data-points from EuroStat that clearly illustrates just how much the payments have risen over the past several quarters. It is not news to anyone that the region is being crushed by heavy debt loads and little ability to come up with the revenues as they slip further into a recession.
The levels have been rising at a staggering pace. It is no wonder that the Read more
August 10, 2012
Last night, China just released reports on retail sales as well as imports and exports. The trade numbers missed by a wide margin. Retail sales are generally holding up but missed estimates. Looking at the full series, there is a serious and widespread slowdown that is more than apparent.
With that, media should be all over the possibility Read more
July 16, 2012
In an effort to ensure that they get paid back money lent to EuroZone sovereigns, the ECB is looking to allow haircuts for private bondholders. As we saw with Greece, the ECB is all too willing to prop up the markets and then when the bonds begin to fail, they insulate themselves and push all of the risk on private bondholders.
If they think that this scheme is going to work, they are sorely mistaken. Already there is great trepidation in owning bonds of the peripheral countries as the lack of any support to trigger CDS hedges has Read more