Archive - Jul 30, 2010 - Blog entry

In the first quarter, the US economy grew by 3.7%, revised up from an originally reported 2.7% increase. But growth estimates all the way back to the start of 2007 were revised lower. Moreover, the level of real GDP in Q1 was revised down by $100 billion. Does this mean the secular bull market in bonds will continue? And are Treasuries the "last diversifier left"?

The Japanese economy operates on the assumption, soon to be proved false, that the government will always be able to borrow at low interest rates. As internal demand evaporates, the government will have to start hawking its debt outside Japan — in a more realistic world, where interest rates are a lot higher.

Ultimately markets will move sideways long-term.

Turkey is among a handful of emerging nations on the cusp of joining the economic big league. How painful economic reform measures and banking controls can work. Foreign multinationals are pouring in. Suddenly, being shut out of the EC doesn’t look half bad. Does its flexing of new diplomatic muscle have a pronounced Islamic, anti American bent? (TUR), (TKC).

Dear Mr. President, You don’t know me, but I was one of the millions of Americans who voted for you in the last election. I have since been fairly critical of your Presidency largely because I, like many others, feel betrayed by the policies you have enacted upon winning said election.

Markets in a Flash

· Asian equity markets closed down across the board last night. The Nikkei was down -1.64%, while the Shanghai index was down -0.4%.

· European equity markets are falling this morning ahead of the US GDP figures. The FTSE 100 is down -0.57% at lunchtime London time.

· Commodities are mixed in today trading session. Oil is falling back in correlation with equities while Gold is gaining as investors find safety.

The Spanish banks rallied after the (faux) stress tests, just to have reality spank them the following week. This time around, will the revolution be televised, or covered through a blog?

These days it’s hard to distinguish mainstream media financial journalism from the funny pages. Here are some of the best stories of the past week.