Archive - Aug 29, 2010 - Blog entry

Today, “bond funds” ranked with “Miss Universe” and “Lindsey Lohan” among Yahoo’s top ten search terms. Outflows from equity mutual funds over the last two years totaled $232 billion, while inflows into bond funds soared to a staggering $559 billion. The last time yields were this low in 1955, ten year bonds brought in an annual return of only 1.9% for the following decade. Are the Chinese calling the top in the market? (TBT), (TMV), (TIPS)

Just looking at the pieces of the puzzle.

While many economists are worried about whether or not the Fed should increase quantitative easing, my concern has been and remains the toxic effect of the Fed’s intervention on what remains of the private financial markets. Fed officials and members of the Obama Administration wring their hands over individuals and companies saving too much, but perhaps they should ask why. It starts with zero interest rate policy.

What has been missing from these signals is a lack of follow through.

Where are we relative to the average of previous financial crises around the world and will the US benefit from China's "inevitable collapse"?

The chairman speaks some truth...

There really is no corner of the financial markets that was not well represented by market makers, analysts, technology providers, and investors-- thousands of them. A big splash in hard assets.

Watch this one.