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News That Matters
Ft.com
Asian shares and the euro fell on Monday, Reuters reports, as investors reacted cautiously to reports that European leaders were working on new ways to stop the fallout from the euro zone sovereign debt crisis wreaking more damage on the world economy. Gold extended losses, http://ftalphaville.ft.com/thecut/2011/09/26/685061/equities-continue-sl...
China’s yuan may become a fully convertible currency in five years, Li Daokui, an adviser to the People’s Bank of China, told a forum in Washington. Bloomberg reports Li said flexibility of the yuan will increase over coming years, http://ftalphaville.ft.com/thecut/2011/09/26/685036/yuan-convertible-in-...
The government of Mongolia is seeking a bigger stake in Oyu Tolgoi, the biggest undeveloped copper mine in the world, the FT reports, in a surprise move that underlines the challenges ahead for Rio Tinto and Ivanhoe Mines as they develop the country’s flagship mining project. The government of Mongolia has asked to reopen discussions over the 2009 investment agreement for Oyu Tolgoi, http://ftalphaville.ft.com/thecut/2011/09/26/685001/mongolia-presses-for...
US investment banks are facing losses on financing commitments for buy-outs and other deals struck before the recent market turmoil, as they sell down about $25bn in loans and junk bonds, the FT reports. Banks have had to make concessions to entice a broader range of investors to buy loans linked to mergers and acquisitions, http://ftalphaville.ft.com/thecut/2011/09/26/684976/us-banks-face-losses...
The IMF annual meetings wrapped up in Washington on Sunday with widespread concern over the eurozone sovereign debt crisis but no immediate consensus on the solution, the FT reports. Participants said they were waiting for the ratification of the action plan agreed on July 21 by the eurozone, http://ftalphaville.ft.com/thecut/2011/09/26/684936/imf-talks-fail-to-fi...
US tax authorities are targeting cross-border finance deals worth billions of dollars between leading US and UK banks as they step up efforts to clamp down on abusive tax avoidance, a joint investigation by the FT and ProPublica has found. Four US banks – BB&T, Bank of New York Mellon, http://ftalphaville.ft.com/thecut/2011/09/26/684926/us-tax-authorities-t...
Senior Russian government figures have rebelled against a deal between President Dmitry Medvedev and Vladimir Putin, the prime minister, to switch jobs next year. The rebellion indicates that the handover arrangement will not be as smooth as the two leaders had anticipated. After Saturday’s announcement that Mr Medvedev would take over as prime minister, while backing Mr Putin to return to the presidency in March 2012 elections, Alexei Kudrin, finance minister, announced during a meeting in Washington that he would “definitely refuse” to work with Mr Medvedev in the cabinet. http://www.ft.com/intl/cms/s/0/594a509e-e78f-11e0-9da3-00144feab49a.html...
The South Korean central bank surprised the markets on Friday with a $4bn lightning intervention in support of the won, carried out in the last two minutes of trading, The day before, Brazil spent $2.75bn selling dollars in the currency swaps market to stop the rapid decline of the real. Does this mean central banks in emerging markets are finally trying to reverse the sharp plunge in their currencies over the past month? Probably not, currency strategists believe. Officials are primarily aiming to curb what they see as excessively wild swings in their currencies. They want stability, not appreciation. http://www.ft.com/intl/cms/s/0/91057f04-e609-11e0-960c-00144feabdc0.html...
Wsj.com
European officials are debating ways to boost the firepower of their financial-bailout fund after the world's finance ministers, worried about the potential for a market meltdown, ratcheted up pressure on euro-zone officials to act. During meetings of the International Monetary Fund in Washington over the weekend, the U.S. and other major nations pressed European leaders to increase the effective size of their €440 billion ($594 billion) rescue fund to perhaps trillions of euros by borrowing against it. http://online.wsj.com/article/SB1000142405297020401060457659283002099648...
For months it has been all about Europe and the U.S. Suddenly, investors have reasons to worry about the rest of the world. Last week, the Dow Jones Industrial Average tumbled 6.4%, its worst week since October 2008, leaving it down nearly 7% for the year. The Standard & Poor's 500-stock index did nearly as poorly last week and now is down 9.6% this year. But rather than focus solely on Greek debt, European banks and the U.S economy, many investors have begun to wring their hands about a new set of indicators they say portend a serious slowdown in http://online.wsj.com/article/SB1000142405297020401060457659279064942955...
A coalition of conservative parties that support Nicolas Sarkozy appeared Sunday to have lost its majority in the upper house of France's parliament, a major political setback for the president eight months ahead of next year's presidential election. The opposition Socialist Party, together with other left-leaning movements, won a large chunk of the 170 seats in the Senate that were up for re-election, according to preliminary results. Although balloting was still under way Sunday evening in some of France's overseas territories, the left, which hasn't dominated the Senate in the past 50 years, claimed it would control at least 175 seats in the 348-seat chamber. http://online.wsj.com/article/SB1000142405297020401060457659310029476921...
Greece's center-right opposition party further widened its lead over the ruling Socialists, two public-opinion polls showed, although both major parties continued to see historically low support from the public. According to a poll in the Sunday Proto Thema newspaper, the center-right New Democracy party holds a 5.8-percentage-point lead over the Socialists. A second poll in the Eleftheros Typos newspaper recorded a six-percentage-point lead for New Democracy. http://online.wsj.com/article/SB1000142405297020483130457659240283486742...
The construction-financing and real-estate-loan troubles that brought down 16 savings banks this year aren't likely to harm the rest of South Korea's banking sector, the nation's top financial regulator said Sunday. With savings banks accounting for just 2.4% of South Korea's financial assets, said Kim Seok-dong, chairman of the Financial Services Commission, "It can't influence the whole financial sector of the country. So it's OK to relax." http://online.wsj.com/article/SB1000142405297020401060457659252410272932...
Vietnam's consumer price index in September was up 0.82% from August, easing from its 0.93% rise in August from July, the government's General Statistics Office said Saturday. The rise mainly stemmed from higher prices for education services, food and foodstuff, the office said in a statement. The index for January through September was up 22.42% from a year earlier, compared with 23.02% rise for January-August. http://online.wsj.com/article/SB1000142405297020442240457659319214394293...
Congress was scheduled to be off this week, but lawmakers must stay in Washington because they made no progress over the weekend in settling a dispute over spending that threatens a possible government shutdown. Despite promises to work together following a public backlash against the bickering that consumed much of the summer, Republicans and Democrats face the reality that disaster aid could run out Tuesday and the government could partially shut down beginning this weekend unless they strike a deal quickly. http://online.wsj.com/article/SB1000142405297020401060457659307249954811...
Marketwatch.com
China won't change its monetary and fiscal policy, while its monetary policy must have leeway for adjustment in the event of a more serious crisis in the global economy, the country's central bank chief was cited as saying Monday. In an interview with the China Business News, People's Bank of China Gov. Zhou Xiaochuan said China will not adopt policies that may prompt a "hard landing" of its macroeconomy. Instead, the government will pursue policies to achieve a "soft landing" of its economy, and seek to maintain stable and sustainable development. http://www.marketwatch.com/story/china-central-bank-head-no-policy-chang...
Benchmark crude-oil futures recouped a small portion of its heavy losses last week, climbing 80 cents or about 1% to $80.65 a barrel in Nymex electronic trading Monday morning in Asia. Oil futures slumped last week along with other commodities, with crude oil for November delivery falling $5.41 Friday -- as escalating concerns about global growth trends prompted heavy selling in the sector http://www.marketwatch.com/story/oil-futures-pare-some-of-last-weeks-los...
Reuters.com
Gold and silver prices tumbled on Monday, led by a nearly 10 percent drop in spot silver prices, as investors liquidated their positions on fears of an impending recession. Spot gold fell more than 3 percent to $1,604.29 an ounce, wiping off gains over the past two months. U.S. gold dropped 2 percent to $1,607.2, tracking the weakness in spot prices. U.S. silver shed 6.6 percent to $28.10. http://www.reuters.com/article/2011/09/26/us-markets-precious-idUSTRE78M...
Iran's reformist opposition has watched with admiration as revolutions have toppled three Arab leaders, but despite divisions in the ruling elite it looks incapable for now of taking its protest movement back out onto the streets. Mass protests against the 2009 re-election of President Mahmoud Ahmadinejad marked the worst unrest since the Islamic Revolution three decades earlier, but were quelled with lethal force by the state's security apparatus, headed by the elite Revolutionary Guards. http://www.reuters.com/article/2011/09/25/us-iran-opposition-idUSTRE78O1...
Unconventional monetary policy tools like large-scale bond purchases can effectively lower long-term borrowing costs, but the effect on the real economy is less clear, a top Federal Reserve official said on Friday. "Specifically, does lowering Treasury yields through large-scale asset purchases have the same effect on the economy as an equivalent movement in the federal funds rate?" said John William, president of the San Francisco Federal Reserve Bank, in remarks prepared for delivery to the Swiss National Bank Research Conference. "To what extent is it the size or the composition of the central bank's balance sheet that matters?" http://www.reuters.com/article/2011/09/23/us-usa-fed-williams-idUSTRE78M...
The build-up of debt before the 2007-2009 financial crisis, and the crisis itself, created an 'unusually anemic recovery' that has overwhelmed policymaker efforts to stimulate demand with monetary and fiscal easing, a top Federal Reserve official said on Friday. Regulators have made a "good start" on boosting capital requirements and creating other rules to rein in the kind of risk-taking that fueled the recent boom and bust, New York Federal Reserve Bank President William Dudley said in the text of remarks prepared for delivery in Washington on Friday. http://www.reuters.com/article/2011/09/23/us-usa-fed-dudley-idUSTRE78M53...
Bloomberg.com
Pacific Investment Management Co., which runs the world’s biggest bond fund, is forecasting that advanced economies will stall over the next year as Europe slides into a recession, underscoring mounting investor concern about the global economic outlook. There will be little-to-no economic growth in industrial nations in the coming 12 months as Europe’s economy shrinks by 1 percent to 2 percent and the U.S. stagnates, said Mohamed El- Erian, chief executive officer of Newport Beach, California- based Pimco.
That will leave worldwide expansion at about 2.5 percent, less than the 4 percent forecast by the International Monetary Fund this year and next. http://www.bloomberg.com/news/2011-09-25/pimco-s-el-erian-sees-rich-econ...
German Chancellor Angela Merkel said euro-region leaders must erect a firewall around Greece to avert a cascade of market attacks on other European states that would risk breaking up the currency area. Expanding the powers of the region’s rescue fund, the European Financial Stability Facility, as agreed by European leaders in July is necessary to avoid Greece’s problems from spilling over to other countries, Merkel said late yesterday on ARD television. The fund’s permanent successor, due to take effect in mid-2013, is needed “so we can in fact let a state go insolvent” if it can’t pay its bills. http://www.bloomberg.com/news/2011-09-25/merkel-can-t-rule-out-euro-area...
Betting on Ben S. Bernanke has been the most profitable trade for government bond investors in 16 years, defying lawmakers in the U.S. and abroad who said the Federal Reserve chairman’s policies would lead to runaway inflation and the dollar’s debasement. Treasuries due in 10 or more years have returned 28 percent in 2011, exceeding the 24.4 percent gain in all of 2008 during worst financial crisis since the Great Depression, according to Bank of America Merrill Lynch indexes. Not since 1995, when the securities soared 30.7 percent, have investors done so well owning longer-dated U.S. government debt http://www.bloomberg.com/news/2011-09-25/betting-on-bernanke-returns-28-...
Israeli Prime Minister Benjamin Netanyahu and Palestinian Authority President Mahmoud Abbas emerged from their showdown at the United Nations buttressed domestically though no closer to peace talks. “Abbas succeeded in strengthening his standing among Palestinians and of his ideology of achieving statehood diplomatically against the challenge from the Islamist Right represented by Hamas,” said Hussein Ibish, senior research fellow with the American Task Force on Palestine, a nonpartisan Washington-based group that advocates a peaceful two-state solution. Netanyahu also “solidified his political position,” Ibish said. http://www.bloomberg.com/news/2011-09-25/middle-east-peace-no-closer-as-...
Malaysia’s inflation has probably peaked and price pressures may ease as the global economy deteriorates, central bank Governor Zeti Akhtar Aziz said, joining neighbors in signaling less pressure to tighten policy. “Right now, we have to wait for greater clarity on the outlook for growth and inflation before taking any further adjustments” on interest rates, Zeti said in an interview in Washington late yesterday. “Given the more moderate global growth and in terms of the external environment and its implications on the domestic economy, we believe domestic sources of inflationary pressures will be less.” http://www.bloomberg.com/news/2011-09-26/malaysia-inflation-may-have-pea...
It’s “too early” to determine how emerging economies can further help the euro area overcome its sovereign debt crisis because reforms are still under way, China’s central bank Governor Zhou Xiaochuan said. “We need to first see if euro-zone countries can implement their July 21 decision,” Zhou told reporters at the International Monetary Fund in Washington on Sept. 24, referring to a pledge by European leaders to expand the powers of a regional rescue fund. He doesn’t expect Greece will default on its debt and anticipates Europe will be able to overcome its crisis through reform, he told reporters. http://www.bloomberg.com/news/2011-09-24/pboc-s-zhou-says-it-s-too-early...
Cnbc.com
Europe's efforts to ramp up its fight against the euro zone debt crisis could potentially trigger credit rating downgrades in the region, a top Standard & Poor's official warned. David Beers, the head of S&P's sovereign rating group, said it is still too soon to know how European policymakers will boost the European Financial Stability Facility, how effective that will be and its possible credit implications. http://www.cnbc.com/id/44662943
Foxbusiness.com
Noyer, also a member of the European Central Bank's governing council, told Le Journal du Dimanche (JDD) that French banks did not need to be recapitalized but could seek support from a public entity if they deemed it necessary. Asked to comment on a report in the same newspaper, which alleged that France's government had discussed a plan to inject 10 to 15 billion euros into the French banking system, he said: "There is no plan, and we don't need one." http://www.foxbusiness.com/markets/2011/09/25/noyer-says-french-banks-co...
Cnn.com
Speaking in Washington at an international banking conference, Evangelos Venizelos said Sunday that his country will do "whatever it takes" to meet its financial obligations. "Greece wants to make it and will make it," Venizelos told members of the Institute of International Finance. "We are ready to take the necessary initiatives, at any political cost." But the cost is "very expensive," he added, saying that Greece should not be a "scapegoat" for the broader sovereign debt problems in Europe. http://money.cnn.com/2011/09/25/markets/greece_evangelos_venizelos/index...
USAtoday.com
Fixed mortgage rates hovered at record lows for a third straight week. They are likely to fall even further now that the Federal Reserve said it would shuffle its holdings to drive down long-term interest rates. The average rate on the 30-year fixed mortgage was unchanged at 4.09% this week, Freddie Mac said Thursday. That's the lowest rate seen since 1951. The average rate on the 15-year mortgage ticked down to 3.29%. Economists say that's the lowest rate ever for the loan. http://www.usatoday.com/money/economy/housing/story/2011-09-22/Mortgage-...
Washingtonpost.com
Thailand’s central bank may cut its economic growth projections as the global recovery falters, Governor Prasarn Trairatvorakul said, signaling there may be less scope for interest rates to rise further. Stocks fell the most in almost three years. Inflation expectations aren’t likely to increase and the Bank of Thailand has “closed the gap somewhat” on normalizing borrowing costs, Prasarn said in an interview in Washington on Sept. 24. The bank is due to unveil forecasts next month. http://washpost.bloomberg.com/story?docId=1376-LS1SY81A74E901-7NI7ULCFNK...
BBC.co.uk
The government will not change tack in its efforts to reduce the budget deficit despite the lack of UK economic growth, the prime minister has said. The International Monetary Fund has cut its UK growth forecast and cumulative public sector net borrowing is put at £52bn - only 7% less than a year ago. As the eurozone crisis deepened, David Cameron insisted to ABC News that Britain was not in trouble. But Labour leader Ed Miliband said the government needed to "change course". http://www.bbc.co.uk/news/uk-politics-15051462
Telegraph.co.uk
The head of the IMF has warned that its $384bn (£248bn) war chest designed as an emergency bail-out fund is inadequate to deliver the scale of the support required by troubled states. In a document distributed to the IMF steering committee at the weekend, Ms Lagarde said: "The fund's credibility, and hence effectiveness, rests on its perceived capacity to cope with worst-casescenarios. Our lending capacity of almost $400bn looks comfortable today, but pales in comparison with the potential financing needs of vulnerable countries and crisis bystanders." http://www.telegraph.co.uk/finance/financialcrisis/8788223/Christine-Lag...
Samsung is considering legal action that would block the sale of Apple's next iPhone in the latest move in an increasingly acrimonious battle between the technology giants. The South Korean company is seeking an injunction to ban the forthcoming launch of the iPhone 5 in Europe as well as Korea on the basis that the American company has poached its technology. Although little is known about the latest version of Apple's iconic iPhone – which could be launched as early as next week – Samsung claims that it will rely on a technology that is protected by patents that it owns. http://www.telegraph.co.uk/technology/apple/8787998/Samsung-may-try-to-b...
Europe, the G20, and the global authorities have one last chance to contain the EMU debt crisis with a nuclear solution or abdicate responsibility and watch as the world slides into depression, endangering the benign but fragile order that has taken shape over the last three decades. The threat of cascading default, bank runs, and catastrophic risk must be taken off the table," said US Treasury Secretary Tim Geithner over the weekend. "Sovereign and banking stresses in Europe are the most serious risk now confronting the world economy. Decisions cannot wait until the crisis gets more severe." http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/878813...
A wave of high-street retailers could hit the wall before Christmas as they struggle to meet their next quarterly rental payment, due this week, experts have warned. Many shops stand on “shaky ground” ahead of the looming “rent day”, which falls on September 29 and comes each year in late March, June, September and December. A potent mix of factors including dismal August sales, the rise in online shopping, tighter credit terms from suppliers and the unpredictable British weather present a huge challenge for ailing retailers this autumn as banks decide whether to extend their backing for a further quarter or throw in the towel. http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/878804...
Guardian.co.uk
George Osborne will announce a £100m-plus tax break for entrepreneurs willing to invest in Britain's fastest-growing businesses. Following the green light from the European commission, the chancellor is to go ahead with proposals floated in the budget to expand the Enterprise Investment Scheme. The plan involves raising the income tax relief from 20% to 30% for EIS investments, backdated to April 2011, and doubling investor limits to £1m, which will come into effect in April 2012. http://www.guardian.co.uk/business/2011/sep/26/small-businesses-tax-brea...
Smh.com.au
Allowing Greece to default on its debt now would destroy investor confidence in the euro zone and might spark contagion like that experienced after the bankruptcy of Lehman Brothers in 2008, says German Chancellor Angela Merkel. "We need to take steps we can control," Merkel said, drawing a parallel between the Greek situation and that of Lehman, whose bankruptcy helped trigger the global financial crisis. "What we can't do is destroy the confidence of all investors mid-course and get a situation where they say that if we've done it for Greece, we will also do it for Spain, for Belgium, or any other country. Then not a single person would put their money in Europe anymore." http://www.smh.com.au/business/world-business/greek-default-would-destro...
Theglobeandmail.com
A synchronized global slump, a housing meltdown, failed banks and stubbornly high unemployment. The parallels between the Great Depression and the Great Recession of 2007-09 are powerful and well documented. Now, as the voices of austerity square off against those pushing for more stimulus, economists are warning of another scary congruence – the threat of a 1937-like plunge back into recession. http://www.theglobeandmail.com/report-on-business/spectre-of-1937-double...
Straitstimes.com
A Greek default on its debts is inevitable and euro zone countries must act now to prevent other countries going the same way, Britain's former finance minister Alistair Darling said on Sunday. Mr Darling, who held the key post during Britain's 2008 banking bailout, accused European leaders of having alloweed the Greek crisis to 'run on and on and on', in an interview with Sky News. European governments had 'only this weekend...realised it is only a matter of time before Greece defaults,' the Labour lawmaker said. 'It is imperative the euro zone countries take action now and not let it drag on for the next few weeks because the risk is it will bring down other countries with it,' he added. http://www.straitstimes.com/BreakingNews/Money/Story/STIStory_716802.htm...
Xinhuanet.com
A preliminary reading of the HSBC purchasing managers' index (PMI) signaled a contraction of China's manufacturing sector for the third consecutive month in September, which has afforded a prospect for slower GDP growth in China in the last quarter of 2011. Besides, on account of domestic tightening policies and a dull outlook for the global recovery, the International Monetary Fund (IMF) and the Asian Development Bank (ADB) both lowered their estimate for China's growth for this year and the next. http://news.xinhuanet.com/english2010/indepth/2011-09/26/c_131159322.htm
China will invest two trillion yuan (313 billion U.S. dollars) to promote low-carbon economy in the five years to 2015, the China Daily reported on Sunday, citing a senior official from the country's top economic planner. The investment will help reduce energy consumption per unit of gross domestic product in China by 16 percent at the end of 2015 compared with the level of 2010, the newspaper said, quoting Xie Zhenhua, vice chairman of the National Development and Reform Commission. http://news.xinhuanet.com/english2010/china/2011-09/25/c_131158314.htm
While officials of the administration of President Benigno S. Aquino III have been trumpeting that the huge budget surplus in August of 9.22 billion pesos (210 million U.S. dollars) was due to the government's prudent fiscal management, some critics are saying that this was the result of under-spending which has dragged the Philippine economy downwards. It was President Aquino himself who announced the "the good news" to members of the Filipino community last Thursday during the Washington leg of his working visit to the United States. http://news.xinhuanet.com/english2010/business/2011-09/24/c_131157297.ht...
Brazil's Central Bank President Alexandre Tombini said on Friday that the current global economic and financial turmoil could become even worse, but Brazil will take necessary measures to prepare the country against potential risks. Tombini, speaking at the Brazil-U.S. commerce chamber conference, said that if the crisis worsens, the Brazilian central bank may adjust its annual growth rate projection, which is currently at four percent. In its latest report, the International Monetary Fund (IMF) has already reduced the growth rate projection for Brazil from 4 percent to 3.8 percent. http://news.xinhuanet.com/english2010/business/2011-09/24/c_131157082.ht...
Thehindu.com
The Finance Minister, Mr Pranab Mukherjee has suggested a seven point agenda for the World Bank to consider in these current difficult times for the global economy. The first and foremost of the priorities should be to address the lack of financial capacity of the World Bank and the IFC, Mr Mukherjee said in an intervention at the development committee meeting of the Fund-Bank at Washington on Saturday. "As we stand at the brink of a recession and continue to hope that we will avert it, we are worried about the lack of adequate financial capacity in the Bank. Our concern is that when a new crisis unfolds, IBRD and IFC will be mute spectators", Mr Mukherjee said. http://www.thehindubusinessline.com/industry-and-economy/economy/article...
India and other emerging markets such as China have done well to post high growth rates and yet closely manage inflationary pressures in their economies, according to Angel Gurria, Secretary-General of the Organisation for Economic Cooperation and Development. Speaking to a small group of journalists on the margins of the annual World Bank-International Monetary Fund meeting here, Mr. Gurria said there was no doubt that India and China were engines of growth for the world economy. http://www.thehindu.com/news/national/article2484855.ece
Economictimes.com
Global financial companies have begun cutting jobs in India as the worsening financial crisis in the West dims business outlook, forcing companies to scrap fund-raising and M&A plans. Bank of America Merrill Lynch, Nomura, UBS and HSBC are among the companies sacking employees in the third wave of financial market job cuts since the Asian crisis of 1997. More than 200 have been laid off in investment banking in the past few weeks in corporate banking and retail divisions as the banks strive to remain meaningful amidst a general slowdown. "We are seeing selective cost rationalisation, as a reaction to market outlook," said Sonal Agrawal, head of executive search firm Accord India. "Some firms that were building out businesses have a diminished appetite for further investment at the moment, due to global woes." http://economictimes.indiatimes.com/news/news-by-industry/jobs/worsening...
India and China, the world's fastest-growing economies, will hold their first strategic economic dialogue in Beijing Monday that seeks to address widening trade deficit and explore new areas of cooperation. The two-day dialogue will be co-chaired by Montek Singh Ahluwalia, deputy chairman of the Indian Planning Commission, and Zhang Ping, director of China's National Development and Reform Commission. Representatives of the Planning Commission and the ministries of external affairs, commerce, water resources, renewable energy and power are expected to participate in the dialogue. http://economictimes.indiatimes.com/news/economy/indicators/india-china-...
Thetrader.se
Having been on vacation through possibly the most volatile week (yet) of 2011 this week’s macro view may be better served as a recap of various asset classes to get a sense of where the equity market stands right now. From credit to commodities to forex a lot of technical damage was done. First though it appears an important change in perceived risk has occurred. In the past bad news was good news as it would bring further accommodative monetary policy such as QE1 and QE2. Market participants always believed the Bernanke put was alive and well and equity values would be defended. In other words the perception of risk was less severe. http://www.thetrader.se/2011/09/25/macro-view-by-macro-story/
With majority of markets crushed last week, many indices now trade deep in bear markets. Last week we saw some rather extreme moves, like the Hang Seng down almost 10%. Several indices are down around 50% from the start of this millennium. Long term investing, with poor risk management, is a dangerous game….Below charts, courtesy DShort; http://www.thetrader.se/2011/09/25/most-mark
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Yes, there is great hope. At least Obama is sending the troops home from Iraq http://www.huffingtonpost.com/2011/09/21/iraq-us-military_n_974074.html?... . A real cause for celebration. Despite what Tea Partiers prefer to say, our president is doing his job, and a good one at that.
Now, the market is ready to destroy the equities shorts. Because things get done under Obama, despite his hands being tied down most of the time.
Also like the summary quite a bit, no good news but so far anyone buying Weekend Puts is unhappy with S&P +15. Gotta love this mkt.
I rather liked the summary. There is a lot of data, and I can scan pretty quickly. I increased the font size on my browser for this session. Thanks.
i just read all that and i cannot find one piece of good news. will be bracing for increased volatility and a major market readjustment in the foreseeable future
Buy silver?
Sell silver?
(I'm a simple man. What is this? Like 8 point type? My IQ correlates to 10 pt type and above only. And this, being an AGW skeptic, literally caused my head to explode: "China will invest two trillion yuan (313 billion U.S. dollars) to promote low-carbon economy in the five years to 2015, the China Daily reported on Sunday, citing a senior official from the country's top economic planner." I mean, for fuck's sake, they're covering the poles in soot and clubbing baby seals, but ... ? I am dead. I have had an in earism. You have killed me. My cat is homeless.)
http://www.youtube.com/watch?v=FL7yD-0pqZg
You don't understand how to read liar-speak. Translated into "honest", China just said they want to waste less energy by 2015, because energy costs money, which they value. So their way of saying that in PR-speak is to say "we will generate less carbon than if we continued to practice all the most egregiously polluting practices in the history of mankind like we have the past 30 years or more". That's a bit like saying "the house will be cleaner next year because we plan to feed the baby 30% less food, and thereby reduce the poo on the floor by 30%".
<--------I'm with Stupid (sorry for the slur MrMousePotato)
My mind boggled at the googled.
All I could make sense of was that a hell of a lot of things were going down simultaneously, that I have no control of it, and I'm about to be financially anal raped.
What did I miss?
Mouse and Fart, they are just shaking the tree. You didnt think that the biggest shorts in the world would just give up and take losses without a fight, did you? We may be approaching huge changes, but in my opinion they still are firmly in control, and will make money one way or the other. Sell a bit into strength if you must, but don't play into their hands by capitulating at perceived bottoms. I also believe the margin game is way too rigged to take chances with especially from here on in.
Been called worse.
By myself.
MrMousePotato, lol, ''hold fast'' http://www.youtube.com/watch?v=ATF0KAef_IA&feature=related