ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Bloomberg summarized the latest missive from Bill Gross in a piece called “Fed Easing to Signify End of Bull Market, Gross Says.” Gross called an end to the 30-year bull market in bonds thanks to the the Federal Reserve’s planned second round of quantitative easing. I decided to read Gross in his own words, and … 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
“…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
I decided to take the plunge and read “How the Great Recession Was Brought to an End” by economists Alan Binder (Gordon S. Rentschler Memorial Professor of Economics, Princeton University) and Mark Zandi (Chief Economist, Moody’s Analytics). Binder and Zandi conclude that the various stimulus programs and creative use of montary policy over the last … Read more
While the euro catches all the headlines about its tremendous slide against the U.S. dollar, the British pound has followed closely behind. The pound has lost 12% against the U.S. dollar since its January peak while the euro has lost 18% in that same time. The pound has lost 15% since its post-recovery peak in … Read more