There is little for me to say about the GDP figures from Europe, released this week to much shock and discomfort, as I am frankly tired of GDP and eagerly await the unhonored end of its continued mainstream “significance.” The largest problem with it is that its correlation with actual economic results has clearly broken down from whatever it had [...]
Back in September 2012 at the press conference for Ben Bernanke’s announcement of QE, the Chairman was asked point blank by Pedro da Costa of Reuters about perceptions of it being a program that seemed more directed toward Wall Street than Main Street. The answer was the standard boiler plate assumptions that orthodox economists make in terms of aggregate demand. [...]
Deutsche Bank over the weekend announced a significant dilution to existing shareholders, raising some €8 billion in equity capital in two distinct transactions. About 60 million shares are being sold in a single transaction to a new “anchor” investor, Paramount Holding Services, the investment fund of the (a?) Qatari Shiek. The second transaction is a fully underwritten offering of up [...]
You've probably read about financial repression in which governments or their agents interfere in the market in an effort to reduce debt. The most obvious recent example is the Fed and other central banks interfering in bond markets and suppressing interest rates. While these central banks generally justify this act on the grounds that it will help the economy as [...]
Stocks continued their relentless advance last week and while I remain skeptical of the rally, I must admit its persistence has been impressive. All good things must come to an end though as the bond market demonstrated in fairly dramatic fashion just last week. Long term bonds (as measured by the IShares 20+ year Treasury ETF, TLT) are down nearly [...]
We gather tonight knowing that this generation of heroes has made the United States safer and more respected around the world. (Applause.) For the first time in nine years, there are no Americans fighting in Iraq. (Applause.) For the first time in two decades, Osama bin Laden is not a threat to this country. (Applause.) Most of al Qaeda’s top [...]
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