Archive - Aug 2010 - Blog entry

August 20th

madhedgefundtrader's picture

Taking physical delivery turns the market upside down. Speculation is rife about secret hedges, under the table contracts, or other back room deals. Banned in the US, but legal in London. A newfound penchant for chocolate by the rising Chinese middle class. Get involved, but you might consider taking a long nap first. (NIB).

Expected Returns's picture

The Deflation Bogeyman

Based on the comments and emails I'm receiving lately, it appears more and more people are hopping on the deflation bandwagon. These correspondences have exposed to me an obvious misunderstanding of basic facts. While I suppose I am an "inflationist", I'm the first to admit that deflationists have some valid arguments to support their claims. But at the end of the day, their arguments are flawed; I just don't see deflation as a realistic threat moving forward.

 

Pivotfarm's picture

Markets in a Flash

· As European markets opened and fell this morning and a correlating fall has been seen in the EUR/USD currency pair after comments by ECB council member Axel Weber suggested that that the ECB will support the region’s banks for longer than some investors expected.

· The USD/CAD saw a strong jump north breaking the 1.0500 level as Canadian Core CPI data came in less than expected.

· The GBP looks weak today along with the EUR as European equity markets fell. The JPY and USD seem to be strong against the two.

August 19th

Econophile's picture

Money supply is declining, ZIRP and QE haven't worked, so what's the Fed supposed to do? More of the same? This article takes a look why banks are critical for an economic recovery and why the government has done everything they can to prevent it. Here is Part 2 of 2 and where I think we're headed.

Leo Kolivakis's picture

The Caisse de dépôt et placement du Québec, Canada's largest pension fund, announced today a return for the first half of 2010 of 2.33%, outperforming its benchmark by 307 basis points and adding $4.1 billion in value added. Given the volatility in the markets, this is impressive.

madhedgefundtrader's picture

The Problem With GM

The hoopla over GM’s impending, politically timed IPO obscures fundamental weaknesses that have not going away. Its core customer base is dying off as fast as the reborn company can build new cars. A company with a demographic headache like no other. Driving to Beijing for a tune up?