Foreign Central Banks
While usually prepared to rant and rave about how misleading the SA numbers, this month, Lee can't.
"We, the people," are in deep trouble.
Could housing prices be stabilizing?
Less risk, maybe, but that's a long way from a sustained recovery.
Wednesday’s sell off is being attributed to one massive sell trade of 31 tonnes on the Chicago Mercantile Exchange during Bernanke’s speech. There are rumours of a large US fund selling and also that the selling may have been by JP Morgan – rumoured to be acting on behalf of an Asian fund. Who sold off and why is less important than the fundamentals of the gold market. Absolutely nothing has changed regarding the fundamentals of gold which remain as sound as ever with broad based demand from store of wealth buyers, institutions and central banks internationally and especially in Asia. Good volumes have been seen on the Shanghai Gold Exchange in recent days. In India, lowest gold prices in a month saw strong physical bullion demand and physical buyers hunting for gold bargains to meet the wedding season demand. India remains the world’s largest buyer of the yellow metal (900 tonnes/year) but China is expected to outpace them this year according the World Gold Council. ETF holdings gained 238,674 ounces to a record high of 70.76 million ounces, showing that institutions and investors remain keen on gold. Also, options data has not changed since Wednesday’s price falls.
Next Leg Of The Ponzi Revealed - Foreign Central Banks To Begin Buying US Stocks Outright Starting TodaySubmitted by Tyler Durden on 03/01/2012 15:01 -0400
We were speechless when we read this from Bloomberg...
But coincidentally, the ECB’s next Long Term Refinancing Operation (LTRO) is set for February 29...
A riddle, wrapped in a mystery, inside an enema.
Highly paid shills for the status quo on Wall Street have recently been wheeled out to observe the fundamental ugliness of western government bonds. They are correct. This is an asset class that has managed to defy the laws of economics in becoming ever more expensive even as its supply swells. Their response has been to recommend piling into stocks instead. The logic here is not so pristine. If Napier's thesis is correct, the West faces a period of outright deflation, which will be deeply traumatic for exactly the sort of speculative stocks that have lately done so well. Admittedly, the picture is confused, and prone to all sorts of political horseplay, as observers of the long-running euro zone farce can attest. Nevertheless, when faced with a) huge underlying uncertainties; b) structurally unsound banking and government finances; and c) central banks determinedly priming the monetary pumps, we conclude that the last free lunch in investment markets remains diversification. G7 government bond markets are a waste of time (though you may end up being cattle-prodded into them regardless). But there are still investment grade sovereign markets offering positive real yields. Stock markets are partying like 1999. Which, in many cases, it probably is. We would normally advise to enjoy the party but dance near the door.
To confirm a reversal in Treasuries we need a bona fide breakout.
Lots of motion, little progress.
Sudden collapse in withholding taxes... so now we can get back to the normal state, where the government borrows more than expected.
If last week's tax data is indicative of what's ahead this month, the "good news" won't be sustained.
The Case Shillers are shilling that the market is still weakening. But that's just not the Case.
The markets follow the money.