ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Last week, I claimed that the market is not yet overbought and that any corrections in the short-term will most likely be shallow. Without some specific and new catalyst, traders and investors, especially the ones who missed this latest rally, will treat pullbacks as golden buying opportunities. Moreover, I noted how, as expected, many analysts … Read more
According to the Organization for Economic Co-operation and Development (OECD), its 33 member countries will almost double government borrowing from 2007 to 2011 to the tune of $19 trillion. In the face of this ramp in borrowing (and spending) bond investors are supposed should sit back and calmly continue to absorb all the sovereign requests … Read more
“It’s the main question that keeps me and my colleagues at the MPC up at night. That’s why in our last set of forecasts….we stressed there are upside risks. The slack in the economy is not pushing down on inflation the way we’d like…core inflation is higher in the UK; it’s not dragging down like … Read more
For the past few months, I pestered my youngest brother to write a review of his cogent 2009 analysis of the housing market. In that post, he predicted housing would bottom in April, 2010 and as late as 2013 in a worst case scenario. He has finally produced the follow-up, and I post it below. … Read more
“…the Republicans, I think, have been cutting taxes with borrowed money, and the Democrats have been spending with borrowed money. They agree only on the borrowed money. And the system cannot take that…We are now at a state where, excluding World War II, we are in the worst shape of the relationship between borrowing capacity … Read more