ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Bank of England (BoE) released its “Inflation Report” on November 11, 2009. This was my first time ever reviewing the report and watching BoE Governor Mervyn King in action as he coolly parried with reporters during the press conference covering the report. The latest Inflation Report frequently references the benefits of the depreciation of … Read more
The Debt Buildup The federal government's debt, stoked for years by deficit spending, has surged because of the economic crisis…when interest rates begin to rise, the government will face problems similar to those of homebuyers who took out teaser rates that jump after one or two years. (tags: debt deficit govt_spending)
Mismeasuring inflation « Inflation Watch As was the case in 2007-08, there is a discrepancy between the Case-Shiller index and the owners’ equivalent rent component of CPI, but this time the mismatch causes inflation to be under-reported rather than over-reported. (tags: housing inflation) China should stop property stimulus now -c.bank paper – Forbes.com China should … Read more
Goldman Sachs (GS) has been a bellwether stock since the November lows. GS displayed relative strength when its March lows remained around 50% higher than the November lows. Since then, GS has followed a strong, upward trendline that led the general stock market before hitting its most recent peak in October. However, in November, the … Read more
Fundamental Factors Affecting the Gold Market Interesting summary of the fundamentals supporting higher gold prices from David Hightower, President Hightower Report. Video posted on CME Group educational videos (http://www.cmegroup.com/education/videos.html) (tags: gold)
Erika Miller, correspondent at Nightly Business Report, expressed surprise that the CPI showed prices declined year-over-year by 0.2%: “It came as a total surprise to me that grocery prices have fallen nearly 3 percent in the past year, one of the biggest category declines. I would have guessed prices at the supermarket were up.” Ms. … Read more
If inflation expectations remain “contained” why is a record amount of money pouring into commodities this year? Indeed, there is nothing like a rapidly increasing global supply of paper currency to drive interest in hard assets and push prices upward. Reuters summarizes a recent research report from Barclays on investment flows into commodities: “Barclays Capital’s … Read more
Japan's Latest Economic Ailment: Deflation – TIME While much of the rest of the planet frets about a coming rise in inflation — a consequence of economic recovery, massive stimulus spending and a weakening dollar — Japan faces the opposite problem: a potentially devastating bout of deflation. (tags: Japan deflation GDP)
A tale of two American economies – The Globe and Mail The smaller one is slowly recovering, but the larger one is still in a deep downturn (tags: recovery recession Nouriel_Roubini GDP)
First Solar Exec Gaffney Leaves; Profit Hit On Severance – Tech Trader Daily – Barrons.com (tags: First_Solar cadmium_telluride earnings) Housing Slump May Worsen Next Year, Not Get Better – CNBC.com Sales of existing homes will peak in the final quarter of 2009, then begin a year-long slide, which is likely to be a sharp one, … Read more