madhedgefundtrader's picture

For the first time in history, the world is attempting to pull off an economic recovery without an engine. Except for the US, every major economy is now simultaneously cutting spending while raising taxes, with hugely deflationary consequences. What are the consequences for asset prices everywhere? The oceans of red ink bleeding from your screen last week told the whole story.

Reggie Middleton's picture

Why isn't the popular financial media reporting the fact that Greece's funding costs increased after the $1 trillion dollar bailout? Why isn't it pointed out the Portugal's credit rating has been dropped - post bailout? Exactly what is $1 trillion US dollars good for these days - trick question, but I dare 'ya to answer :-)

madhedgefundtrader's picture

The public generally considerers denizens of the pit as greedy, soulless, money grubbing monsters, difficult to empathize with in any setting. Any arguments? How much do you want to bet that the troubled bank starts with the letter “L”. Watch for film crews framing those dark, foreboding shots in the canyons of downtown Manhattan this summer. Hey Kevin, baby, have your people call my people and let’s do lunch!

asiablues's picture

The decline of China copper imports in recent months has caused a lot of distress among traders. Much of the focus has been on copper's eventual crash by China's property chock. However, China's property market is not the only game in copper town.

Econophile's picture

Tales of Vegas

Vignettes from my "Lost Weekend" in Las Vegas while I was attending Freedom Fest. Perhaps a bit off topic for ZH, but I think it has a lot to do with our perma-Boom-Bust economy. The stories of The Cabbie and The Gambler. Enjoy.

Reggie Middleton's picture

The overt-optimism in deficit forecasting and the wishful extrapolation of growing GDP may score a few points with voters in the near term, but you tend to pay for it in spades in the end. We gave explicit warnings concerning the optimism in the British forecasts, and those warnings have proven to be quite prescient.

madhedgefundtrader's picture

Ben Bernanke and Alan Greenspan are in denial, still don’t understand the Fed’s role in creating the credit bubble, and until they do, investors have no reason to trust in paper currencies. You should be restructuring your portfolio to reflect the ongoing economic decline of the West and the rise of the East. Central banks have cut their holdings of the greenback from 70% to 65%, and we could be on our way to 50% or lower. An exclusive Hedge Fund Radio interview with Adrian Day of Adrian Day Asset Management. (UDN), (CYB), (EWZ), (GFA), (EWS), (FCX), (CORN), (POT), (PHO), (AINV), (ARCC).

Leo Kolivakis's picture

Last week’s market rally, in which the prior week’s carnage was reversed, occurred without any major economic or market news and blunted talk of a double-dip recession. What will occur over the next several weeks, however, is a string of major earnings releases with little margin of error, owing to a consistent ratcheting up of expectations in 2010.