Archive - Feb 11, 2013 - Blog entry

Did Executives, who’re dumping their stock, get actionable information from the Fed?

This is an overview of the euro area financial conditions, including the ECB's balance sheet, deposits and Target2 imbalances. By these measures, the financial condition in Europe continues to improve. We suggest the biggest loser last week was Hollande who was rebuffed twice by Merkel, who is the vastly superior politician. While Hollande's call for FX policy to address the over-valued euro was easily turned aside, less appreciated is that Merkel joined forces with the UK's Cameron to cut the EU budget and France's sacred cow--CAP.

That's Pope, not Dope and Dorner not Droner!

The markets generate noise and a signal.  Reasonable people can and do differ on which is which.  This brief note address the signals for the yen and euro.  Secondarily it looks at sterling and the Australian dollar. 

It seems that to exclusively focus on one side of the equation can be human nature at times, and with regard to inflation concerns humans never see the other side of the equation, i.e., areas where they are actually experiencing deflation in their lives.