Archive - May 2, 2015

We heard from several central banks in the last few days, and what they had to say was just one more reminder that we are in a Hill Street Blues financial world. So, hey, let’s be careful out there - and then some!

Peering into the froth of a cappuccino, we noticed various sized bubbles. There is a fine line between froth and bubbles. As we continued our gaze, both eventually disappeared. Stirring made the frothy bubbles disappear more quickly. Markets are beginning to stir (more later). Unsustainable states ultimately end.

The final and ultimate round of the Crisis that begin in 2008 will occur when faith is lost in the Central Banks.

Facing a pensioner rebellion and a looming payment due to the IMF, Greece’s back is now truly against the wall. As Handelsblatt reports, even if a deal were reached with creditors this weekend, it may now be logistically impossible for Greece to make a €780 million payment scheduled for May 12. Oh well, there's always war reparations...

"Colombia is the next star of Latin America" - Sam Zell

For those who require still more proof that the rally in US equities has become inextricably linked with corporations leveraging their balance sheets to repurchase their own shares, JP Morgan is out with an in-depth look at buyback trends which strongly suggests that buyback activity is in fact responsible for driving US stocks to record highs.

Yogi Berra, one of the keenest observers of the human condition, is said to have once remarked "It is tough to make predictions, especially about the future."  And so it is.