Stuff We Missed: Wednesday, February 22 http://t.co/2qxa9hTA
16 minutes ago
Finance & Markets Channel: Latest Posts
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Finance & Markets
The Gas Wars
Nothing drives voter sentiment like the price of gas – now averaging $3.56 a gallon, up 30 cents from the start of the year. It’s already hit $4 in some places. The last time gas topped $4 was 2008. And nothing energizes Republicans like rising energy prices. Last week House Speaker John Boehner told Republicans [...]
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Finance & Markets
Here Comes Dow 13,000. Then What?
As expected, the (second) Greek bailout is now approved (WSJ, NYT, Bloomberg, FT.com). This rescue plan was widely expected — negotiations had been ongoing for several quarters (seems like years) and so a massive reaction is unlikely. Indeed, European Bourses opened positively then slipped modestly into the red. US futures are modestly higher. Watch for [...]
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Finance & Markets
Work-Arounds for the Politics of Keystone
The Keystone Gulf Coast Expansion Project is now entering its fourth year of regulatory review, and is currently on indefinite political hold. In the mean time, the market is figuring out other alternatives. A key demonstration of the need for better oil transportation infrastructure in the United States is the price gap between West Texas [...]
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Finance & Markets
Weighing the Week Ahead: Time for a Turn in Housing?
Since the start of the Great Recession there has been little reason for enthusiasm about the US housing market. The home construction industry and related sectors have been a continuing drag on the recovery. In my circle of friends I know of several first-time home purchases in the last couple of years. I was reminded [...]
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Great Leap Forward
LET’S MAKE A DEAL: The Bail-Out of Wall Street in Unusual and Exigent Circumstances
It has been recognized for well over a century that the central bank must intervene as “lender of last resort” in a crisis. In the 1870s Walter Bagehot explained this as a policy of stopping a run on banks by lending without limit, against good collateral, at a penalty interest rate. This would allow the [...]
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Finance & Markets
Is Gold Really an Inflation Hedge?
Earlier today I wrote that macro history raises serious questions about returning the monetary system to a gold standard, a goal that some pundits (and a few Republican candidates for president) advocate. Looking to gold as a cure for economic volatility rests partly on the assumption that the metal is a reliable inflation hedge through [...]
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Finance & Markets
Richard Russell: Dow 10,000 to Be Tested Soon
Last week, I asked the question “Where Are the Bears?.” I was quoting technician Helene Meisler, who had pointed out that many of the more well known bears had flipped bullish as markets approached multi-year highs. Amongst the few bears remaining, we can add famed Dow Theorist Richard Russell. The octogenarian wrote the following late [...]
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RGE Analysts
Apple Shares Reach $500 Milestone
Is it all about Apple? This FT article shows how much influence a single company has, which is indeed a danger should that company slip. On the other hand, most countries have one company or sector that is a stand-out and punches way above its weight: it’s like Finland and Nokia, or Brazil/Norway and Petrobras/Statoil, [...]
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Finance & Markets
Investors: Read a Lot, Get Squat!
I have a great question from a valued reader. It hits a theme that I am hearing from many new clients. Despite many hours of work, I am trailing the market. This is a great topic and a good time for me to revisit some old articles. There is a basic principle involved. It is [...]
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Finance & Markets
MF Global Reveals You Are a Bank Counter-Party
The esteemed former Fed Chairman, Paul Volcker, introduced a very simple regulatory concept that bears his name: The Volcker Rule. It was part of the Dodd-Frank regulatory reforms passed after the financial crisis of 2008-09. There has been enormous pushback against what should be a simple piece of prophylactic rules on proprietary trading by depository [...]
