Archive - May 23, 2011 - Blog entry
Economists from the Left and the Right Agree: Neither the U.S. Nor Europe Is Dealing With the Real Problem
Submitted by George Washington on 05/23/2011 19:58 -0500And Moody's will issue a big credit warning on 14 of the UK's 18 biggest banks tomorrow ...
The Fed Lacks the Tools AND the Intelligence to Tighten
Submitted by Phoenix Capital Research on 05/23/2011 19:24 -0500The Fed has done NOTHING but loosen monetary policy since the Financial Crisis began… the problems that the Fed has been battling have not gone away… and the Fed is somehow going to magically starting tightening?!?! Discussions of the Fed tightening should be up there with Elvis sightings: entertaining but worthless. The only thing the Fed knows how to do is throw money away.
Capital Context Update: Credit Crumbling
Submitted by CapitalContext on 05/23/2011 16:27 -0500HY credit reached its widest level of the year today as IG and HY intrinsics are now unch YTD! Significant decompression since mid Feb in HY spreads, increasing amounts of net selling in secondary bonds, and a clear preference for up-in-quality and up-in-capital-structure leaves equity valuations looking precarious.
"The System is Anti-US"
Submitted by ilene on 05/23/2011 16:05 -0500Cash is not our enemy right now - cash is your friend.
Joplin – Nino did it
Submitted by Bruce Krasting on 05/23/2011 13:52 -0500What's with these tornadoes?
BaNZaI7's EURO PIIG VaCaTioN (ReTuRN ENGaGeMeNT)
Submitted by williambanzai7 on 05/23/2011 13:49 -0500They're back...and sicker than ever!
Bernanke Will Be Forced To Do QE3
Submitted by Econophile on 05/23/2011 13:21 -0500When the Fed takes its foot off the money pedal starting in June, money growth momentum will slow down. The consequences of this will be falling equity prices and higher unemployment. Bernanke would rather see higher inflation than higher unemployment, especially during an election year. His only choice will be the political one: QE3.
Two Nuclear Reactors Were Damaged by the Earthquake, BEFORE the Tsunami Hit ... and the Entire Nuclear Reactor Design Is Flawed
Submitted by George Washington on 05/23/2011 11:38 -0500And American plants are - in many ways - even MORE vulnerable than the Japanese reactors ...
The Bear Case for Oil
Submitted by madhedgefundtrader on 05/23/2011 09:05 -0500Take the fear premium out of crude and suddenly it is worth $50 a barrel. Saudi Arabia is ramping up from 10 to 15 million barrels a day of production. What happens if Libya’s Muammar Khadafy suddenly chokes to death on a falafel? (USO), (DUG).
Graham Summers’ Free Weekly Market Forecast (Stocks are Last To Get It Edition)
Submitted by Phoenix Capital Research on 05/23/2011 08:30 -0500IF this happens, then expect stocks to take a BIG hit. So far they’re held up relatively well although as we all know by now, stocks are ALWAYS the last to “get it.” So the fact that stocks have held up while commodities (especially the economically sensitive ones like copper and oil) have taken a dive could in fact be a BAD thing as it predicts some serious pain for stocks.
SS - The interest issue
Submitted by Bruce Krasting on 05/23/2011 08:29 -0500Compounded interest is vital to SS. But is that fair?
QUESTION: WHat Do A RooSTeR, GReeCe aND IMF HaVe In CoMMoN
Submitted by williambanzai7 on 05/23/2011 08:27 -0500Answer: Much more than you think...
Technology Bubbliciousness Is Back With A Vengeance!
Submitted by Reggie Middleton on 05/23/2011 08:18 -0500LinkedIn (LNKD) went public with an absolutely unrealistic valuation that illustrates the dangers of ZIRP policy that has carried on for too long. The marketing machinations of investment banks combined with a total lack of respect for risk and the cost of capital has allowed such to happen – and we all know how this is going to end!. In 2010 LinkedIn generated $15m of PAT (profit after taxes) as quoted by the popular financial media. But that’s PAT. What the media and pop media readers are forgetting is what’s available to common share holders, you know the guys holding that stuff trading on the exchanges.
