British Pound

OilPrice.com Weekly Oil Market Update: 02/22/2010 - 02/26/2010

Crude oil broke through the $80 a barrel ceiling repeatedly during the week but kept falling back as hedge funds placed big bets on the Euro’s decline. The fiscal drama in Greece held global markets hostage much of the week as worries about the impact of the Greek crisis on the euro outweighed comments from Federal Reserve chairman Ben Bernanke about continued low interest rates in the U.S., pushing the euro down against the dollar and damping crude prices. The euro recovered some ground on Friday amid new reports of European aid for Greece after falling to a nine-month low of $1.3440 on Thursday. Germany’s state-owned bank KfW may take part in a planned Greek bond offering next week, according to market reports.

Frontrunning: February 25

  • Yet another example of the ongoing FASB crookery via Jonathan Weil (Bloomberg)
  • Markopolos on Schapiro and the SEC: "she has the wrong staff. They're a bunch of idiots there." (HuffPo)
  • Semi-nationalized RBS loss shrinks to just $1.2 billion, has approval for $1.3 billion in bonuses: one wonders just how the FASB is involved in this one (MarketWatch)
  • British Pound could fall as low as $1.05 (Telegraph)
  • +22K in Jobless Claims to 496K, 460K expected,: 6 our of 8 weeks in 2010 have seen growing jobless claims (Bloomberg, DOL) snow blamed for firings, and worst initial claims number since November 14
  • Palm slashes guidance (Palm), keeps retarded white font on blue background website color scheme
  • The 21st century economic breakdown (Minyanville)

David Einhorn Value Investing Congress Speech

"I have seen many people debate whether gold is a bet on inflation or deflation. As I see it, it is neither. Gold does well when monetary and fiscal policies are poor and does poorly when they appear sensible. Gold did very well during the Great Depression when FDR debased the currency. It did well again in the money printing 1970s, but collapsed in response to Paul Volcker’s austerity. It ultimately made a bottom around 2001 when the excitement about our future budget surpluses peaked." - David Einhorn

Guest Post: How The Printing Press Is Leading To The Demise Of The U.S.A.

Having the reserve currency comes with a great deal of responsibility. Over the course of the last 15 years the United States has abused this power with reckless spending, wars abroad and a printing press that just won’t quit. As I mentioned many times during the financial crisis last fall, the dollar as a reserve currency likely saved our skin. Being the reserve currency made the dollar the obvious safehaven currency. The world was too dependent on the well-being of the dollar for it to implode. If it hadn’t been the reserve currency we probably would have faced a much more harmful crisis. But now the world is tired of seeing us abuse this privilege just as they grew tired of Britain’s abuse of the reserve currency.

smartknowledgeu's picture

I do not profess that the main structural arguments of the following essay are mine. Rather they belong to a rather famous former Chairman of the US Federal Reserve named Alan Greenspan as noted in his rather seminal 1966 essay titled “Gold and Economic Freedom”. However, I have taken the specific arguments of that very prescient essay and modified and reinterpreted them to fit into the contemporary situation of our current global and financial crisis (that it its core, is a monetary crisis).

Distribution Fed Day

The market spike on the FOMC announcement was subsequently met with heavy volume selling that turned today into a big distribution day, foretelling of the coming decline. How long can this liquidity-fueled USD-financed carry trade equity bubble last with less than 4% of Treasury POMOs left to fund it?

The Opportunity Cost Of Green Shoots

JPM's Michael Cembalest with a terrific compare and contrast between the current economic situation and that of the 70's. Useful to not that no matter how many contrasts on draw to previous major recessions, what we are living through now is so much more than a simple manufacturing recession as Rosie keeps pounding the table. Anyone who believes that the impact from the unwind of 50 years of progressively cheaper and pervasive credit will be resolved within a 1 year of the Lehman bankruptcy is either hopelessly naive, or ideologically conflicted, or both.
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The Opportunity Cost Of Green Shoots

JPM's Michael Cembalest with a terrific compare and contrast between the current economic situation and that of the 70's. Useful to not that no matter how many contrasts on draw to previous major recessions, what we are living through now is so much more than a simple manufacturing recession as Rosie keeps pounding the table. Anyone who believes that the impact from the unwind of 50 years of progressively cheaper and pervasive credit will be resolved within a 1 year of the Lehman bankruptcy is either hopelessly naive, or ideologically conflicted, or both.
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