These are todays business headlines at Reuters: Somebody needs a head exam, and it is probably Lockhart. China surprises with first rate rise since 2007 Fed’s Lockhart: Quantitative easing must be big Geithner vows U.S. will not devalue dollar
The dilemma of what to do. While we wait for the mid-term elections and watch the QE2 debate maybe this article in yesterdays NYT provides a good background. http://www.nytimes.com/2010/10/17/weekinreview/17segal.html
Who will be the last Treasury Bond buyer in an environment where the seeds of inflation are being sown? Ben gave us the answer today. What that means to me is that I wouldn’t want to be the last bond…Continue Reading →
There is too much company in the QE 2 play. In Reading Greg Weldon’s letter last night, part of John Mauldin’s Outside the Box series, it becomes apparent that there is too much company in the long bond trade that…Continue Reading →
A lot of good things have happened since January 2009. The Fed kept interest rates low and the Administration got a little stimulus going. These steps averted the Great Depression II. Ben’s worry no doubt, is that the expected Republicans…Continue Reading →
NY Fed Governor Dudley has got the attention of the markets this morning with his talk of more QE. His rational is that while the FED cannot lower rates more, they can buy bonds and provide more stimulus. He does…Continue Reading →
Last week the S&P 500 sold off to a minor support level at 1039. At the moment the market is kind of waiting for the other shoe to drop, one that will push the market down into the value area. In…Continue Reading →
Housing is the problem as we outlined earlier today. The Fed’s statement today in saying it will not add to its Mortgage balances but will in fact keep its Balance Sheet flat and roll old mortgage money into Fed securities means…Continue Reading →
The press and CNBC mouthpieces seem almost unanimous that Ben Bernanke will dump cash on the economy at today’s meeting. I would be very surprised if that occurs. He seems, by all indications that I see and read, attempting to…Continue Reading →
One might ask why after March 2009 everything went up, and up, and up. Whether it was stocks, gold, cattle, copper, oil, you name it, except for the dollar it went up until early December 2009 and was justified as…Continue Reading →