Archive - Feb 23, 2010 - Blog entry

Chen Zhao of BCA Research says the intense debt-deflation pressure being felt in Europe has many similarities to the post-crash environment in Japan in the early 1990s. Deflation pressures are building all around the world but U.S. bond traders are still not convinced. Given the choice between the lesser of two evils, it's clear the Fed and other central bankers would rather err on the side of mild inflation. What will ultimately prevail?

I found a funny connection between the sellers of REO for HUD and the FDIC. Surprised? Nah!

Add the Maestro to the list ...

On the heels of the surprise discount window rate hike late last week, and on the eve of Bernanke’s Congressional testimony, speculation abounds as to the when and where of the next round of tightening. We need look no further than the US Treasury press room, as it has announced today a revival of sorts for its Supplementary Financing Program (SFP).

The 4th Quarter FDIC Bank Data has been updated at www.wlmlab.com. Each quarter I eagerly anticipate the numbers and keep thinking "it can't possibly be worse than last quarter, can it?" Well, never fear, it can. First off, the total amount of loans outstanding at U.S. Regulated Depository Banks has fallen to $7.296 Trillion from $7.425 at the end of Q3 2008.

I was clearly able to see the Greek bank downgrades coming, but there was one bank that was left out, as I expected it to be. If or when that bank gets downgraded, it is a strong chance that Greece will go down with it.

President Obama's Proposal on health care "reform" is a far reaching plan that will cause financial havoc to the health care system specifically and to the economy in general. It, along with the plans passed by the Senate and the House, are so invasive that we will be forever mired in bureaucratic control of this most important segment of our lives. Think of the movie "Brazil."

Deutsche Bank AG is to assume the longevity risks of nearly 3 billion pounds ($4.6 billion) of pension liabilities from BMW’s U.K. plan. This is the largest deal yet in corporate longevity insurance, effectively doubling the size of the market. Will longevity swaps become the new age pension solution or will they offer a false sense of security?

The economic advisor to libertarian Ron Paul’s 2008 presidential campaign gives his views in an exclusive Hedge Fund Radio interview. The Republicans of the last administration weren’t “real” Republicans. The US government is a “cancer on the economy.” The Fed “has managed the economy into the ground.” Interest rates will skyrocket, stock and bond markets will crash, and more financial institutions will fail. Civil unrest is coming. Gold, commodities, and emerging market stocks will be the only place to hide out. You won’t be able to buy “a stick of gum” with a dollar.

Bait and switch ...