2011 June

Strange Times and Conflicting Data for Silver

It is no understatement to say that silver is currently out of favor. Two concurrent currents are at work: the fear that the May massacre instilled in long side speculators, and the growing recognition that the Federal Reserve will not debase the currency any further (at least not right away). Those two factors are interrelated, .. read more

On June 29th, 2011, posted in: Markets by

Negative US T-Bill Rates Are Signs Of Worsening European Distress

Interbank lending may be experiencing  the start of another freeze.  Without an explicit pledge from the European  Central Bank to accept PIIGS debt, private interbank lending arrangements are  left to the whims of overnight cash owners, the institutions most connected to  the Federal Reserve. After more than two years of liquidity interventions, this is a .. read more

On June 27th, 2011, posted in: Markets by

Weekly Economic and Market Review

“We don’t have a precise read on why this slower pace of growth is persisting.” Ben Bernanke at his press conference last week following the FOMC meeting. That was – by far – the most important statement to come out of the post FOMC press conference last week. Bernanke finally had to admit that he .. read more

Bernanke Admits He Just Does Not Know

Early on in his June 22, 2011, press conference, Federal Reserve Chairman Ben Bernanke was asked about why the Fed had just lowered its growth outlook for 2011 and 2012. After attributing some of the reduction in expected economic growth to temporary factors that he feels should be self-clearing, he finally admitted that: “We don’t .. read more

On June 24th, 2011, posted in: Markets by

Collateral Pressures Renew as Interbank Stability Weakens

European turmoil is being revisited within interbank marketplaces. Fears of exposures to Greece, Portugal, Italy, Spain, etc. have forced many banks to rethink their lending policies. The Telegraph reported on June 18 that Standard Chartered and Barclays (BCS) moved billions out of the unsecured interbank lending market, with Standard Chartered cutting its overall exposure by .. read more

On June 23rd, 2011, posted in: Markets by

You Can’t Handle The Truth!

Jessep: You want answers? Kaffee: I think I’m entitled to them. Jessep: You want answers? Kaffee: I want the truth! Jessep: You can’t handle the truth! Scene from A Few Good Men, written by Aaron Sorkin The context of that quote from A Few Good Men has nothing to do with the current economic problems .. read more

On June 21st, 2011, posted in: Markets by

Weekly Economic And Market Review

After six straight weeks of decline, stocks finally managed to post a positive return last week. It wasn’t much and the late week rally resulted from hope that the Europeans would find a way to further the delay the inevitable Greek default that all but the truly delusional know is coming but after six weeks .. read more

On June 19th, 2011, posted in: Economy by