Contributors

Beyond the European Debt Crisis?

by

I’ve found some interesting reading material on the European debt crisis.  The markets are completely obsessed with this rightly or not.  I’m equally obsessed, I have to admit so enjoy these musings by Pension Pulse   FRIDAY, SEPTEMBER 16, 2011 Beyond the European Debt Crisis?George Soros wrote an excellent comment asking, Does the euro have a future?HT: Steve:The euro crisis is a direct consequence of the crash of 2008. When Lehman Brothers failed, the entire financial system started to collapse and had to be put on artificial life support. This took the form of substituting the sovereign credit of governments … Read more

Is A Bearish Divergence Signal Flashing In Gold?

by

Is A Bearish Divergence Signal Flashing In Gold? Posted In Blog| 2 Intelligent Comments, Add Yours I was on a coaching call last night with another student and we were looking at Gold (GLD). I had noticed that it’s flashing a pretty large bearish divergence signal on the daily chart using a MACD Histogram. Now, I’ll be the first to tell you that Gold is all over the media right now and has been in a parabolic state for the past year. But that doesn’t mean we won’t see a little correct here to keep this rally going. As always, … Read more

Massive Default Is Best Way to Fix the Economy

by

You want to fix this economic crisis? You want to put people back to work? You want to light a fire under the economy? There’s a way to do it. Fast. And relatively simple. But you’re not going to like it. You’re not going to like it at all. Default. A national Chapter 11 bankruptcy. The fastest way to fix this mess is to see tens of millions of homeowners default on their mortgages and other debts, and millions more file for bankruptcy. I told you that you wouldn’t like it. I don’t like it much either. It sticks in … Read more

Strauss-Kahn meets with IMF

by

Strauss-Kahn meets with IMF Chief and staff members The Washington-based International Monetary Fund (IMF) said Monday that its former boss Dominique Strauss-Kahn paid a visit to the Global lender and met with its Chief and staff members. He visited IMF headquarters Monday afternoon, and current IMF Managing Director Christine Lagarde met him prior to his meeting with Fund staff, an IMF spokesman said in a short statement. “These were private meetings, arranged at his request. We have no further comment to offer,” the statement said. IMF spokesman David Hawley said on August 25 at an IMF press conference that Mr. … Read more

Brazil raises primary surplus target

by

Brazil raises primary surplus target Brazilian Finance Minister Guido Mantega said Monday that the government will raise the primary surplus target for Y 2011 to minimize the effects of the Global financial crisis. The surplus will be raised from 117.8 to 127.8-B Reais (US$73.6 to 79.9-B), representing some 3.3% of the nation’s GDP. In the 1st 7  months this year, Brazil’s primary surplus amounted to 92-B Reais (US$57.5-B). “We are taking precautions against a possible escalation of the crisis to prevent Brazil from suffering the same fate as the affected countries,” Mantega said. “We want Brazil to continue in a … Read more

Japan Unemployment Rate Rises as Noda Becomes Prime Minister

by

Aug. 30 (Bloomberg) — Japan’s jobless rate rose for a second month and retail sales dropped, underscoring the challenge for incoming Prime Minister Yoshihiko Noda in securing Japan’s recovery from the March 11 earthquake. The unemployment rate rose to 4.7 percent in July as payrolls fell by 40,000 from a month earlier, the statistics bureau said today in Tokyo. Retail sales slid a seasonally adjusted 0.3 percent from June, a Trade Ministry report showed. Noda, who was elected premier by the lower house of parliament today, inherits a recovery under threat from an advancing yen and a global slowdown. A … Read more

Industries Prone To Bubbles and Why

by

A bubble (sometimes called an asset bubble, financial bubble or investment bubble) exists when the market prices of assets in a particular class far exceed those assets’ true value. These inflated values are unstable and eventually fall dramatically. Dozens of bubbles have inflated and burst over the course of history. While some bubbles appear to be one-time events, certain industries have seen bubbles form repeatedly, with investors seemingly never learning from past mistakes. Let’s examine a few of these industries and what appears to make them bubble-prone. Precious Metals In times of economic turmoil, many investors view precious metals as … Read more

‘s cuts Japan rating, blames politics

by

(Reuters) – Moody’s Investors Service cut its rating on Japan’s government debt by one notch to Aa3 on Wednesday, blaming a build-up of debt since the 2009 global recession and revolving-door political leadership that has hampered effective economic strategies. Japan is preparing to elect its sixth leader in five years to replace unpopular Prime Minister Naoto Kan, under fire for his handling of the response to a March tsunami and subsequent radiation crisis at a crippled nuclear power plant. The downgrade, while not out of the blue, served as another reminder of the debt burdens that nearly all of the … Read more

Markets Rally Ahead of Fed News

by

US shares add to gains on anticipation of Fed action US Stocks are rallying Tuesday, with the S&P 500 and the NAS up more than 2%, as buyers emerged before a highly anticipated address by US Federal Reserve Chairman Ben Bernanke later this week. Technology and other growth stocks drove much of the market’s gains, with the S&P Information Technology Index .GSPF up 2.4%. A weaker-than-expected reading of the US housing sector was the latest in a string of discouraging data that has raised expectations the US Fed will take measures to prop up the economy. New US single-family home … Read more

Layoffs sweep Wall Street, along with low morale

by

(Reuters) – In early summer, before layoffs began sweeping across Wall Street, billboard-sized photos of employees were plastered on the walls, pillars and elevator banks of Credit Suisse Group AG’s offices in the United States and abroad. The museum-quality prints, depicting workers from administrative assistants to senior executives, were emblazoned with motivational words like “Proactive” and “Partner.” By mid-July, however, the photos disappeared and the Swiss banking giant began laying off 2,000 employees. Security guards prevented employees from taking cell-phone pictures as the posters were stripped away, according to one employee who was present. “It sent an entirely wrong message,” … Read more

Low Rates Hit Money-Market Funds

by

Money-market mutual funds, those havens of safety for investors during tumultuous times, are facing their own pressures as interest rates continue to decline. The funds, which historically aimed to provide higher yields than bank deposits without risk of losses, are waiving fees and consolidating—or closing their doors altogether. The drop Thursday on the 10-year Treasury to below 2% in intraday trading provided fresh bad news for the funds. Money-market funds once were profit machines, collecting $13 billion in fees at their peak in 2008. But they have seen their revenues shrivel by 65% over the past three years as short-term … Read more

U.S. investigating S&P over mortgages

by

  (Reuters) – The Justice Department is investigating whether Standard & Poor’s improperly rated dozens of mortgage securities in the years before the financial crisis, The New York Times reported on Thursday, citing sources familiar with the matter. The investigation began before S&P, a unit of McGraw-Hill, downgraded the long-term U.S. debt from a AAA rating to AA-plus this month, the paper said. In the mortgage investigation, the Justice Department has been asking about instances in which S&P analysts wanted to assign lower ratings to mortgage bonds but may have been overruled by S&P business managers, the Times reported. Justice … Read more

Producer Prices Surge in July as Inflation Fears Ratchet Up

by

U.S. core producer prices rose at their fastest pace in six months in July, pushed up by higher tobacco and light truck costs, according to a government report on Wednesday that could stoke inflation fears. The Labor Department said its seasonally adjusted index for prices paid at the farm and factory gate, excluding food and energy, rose 0.4 percent—the largest increase since January—after rising 0.3 percent in June. That compared with economists’ expectations for a 0.2 percent rise. Overall prices received by producers rose 0.2 percent after falling 0.4 percent in June, above economists’ expectations for a 0.1 percent gain. … Read more

LSE Trading Soars Amid Volatility

by

High levels of volatility in global stock markets last week, triggered by Standard & Poor’s downgrade of U.S. debt and concerns over the euro zone, led to the third-highest number of daily trades at the London Stock Exchange. There were 1.54 million trades carried out on the LSE on Tuesday, Aug. 9, according to data from the U.K. exchange operator. This amounted to almost three times the average daily trading volume so far this year, which had been around 642,000 trades per day to the end of July. Full article available @: http://online.wsj.com/article/SB10001424053111903639404576514180786717862.html?mod=rss_whats_news_us&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Fxml%2Frss%2F3_7011+%28WSJ.com%3A+What%27s+News+US%29&utm_content=Google+Reader

Fitch Affirms U.S. AAA Credit Rating, Says Outlook Stable

by

Aug. 16 (Bloomberg) — Fitch Ratings affirmed its AAA credit rating for the U.S. and said the outlook is stable, citing the nation’s central role in the global financial system and the flexible, diverse economy. Fitch had put the rating under review after lawmakers reached a compromise Aug. 2 on a debt-limit agreement that prevented a U.S. default. Standard & Poor’s on Aug. 5 cut its U.S. credit rating to AA+ from AAA, saying lawmakers failed to cut spending enough to reduce record deficits. Moody’s Investors Service affirmed its top U.S. ranking last week. The U.S. may be placed on … Read more

‘s Lockhart says U.S. recession risks have risen

by

(Reuters) – The risk of a new U.S. recession has risen over the last couple of months, but an outright contraction will most likely be avoided, Atlanta Federal Reserve Bank President Dennis Lockhart said on Monday. Lockhart said there is plenty the central bank could do if the economydoes deteriorate further, including ramping up asset purchases or shifting their composition. Recent market volatility, driven in part by concerns of slowing economies both in the United States and Europe, threatens consumer confidence and could put a crimp on spending, Lockhart told a Rotary Club meeting. “The events of the last several weeks … Read more

”’

by

s that cheap stock you have your eye on really a “value trap”? After a 9.3% drop in the Standard & Poor’s 500-stock index this month, most stocks are looking cheap—but some seeming bargains may have more room to fall. Investors need to do more than simply look at price history and buy the most beaten-down stocks, say strategists. The temptation to load up on such stocks is surely there. Using 12-month earnings forecasts, the S&P 500’s average price/earnings ratio is now about 9.9, down from 13.2 at the beginning of the year, according to S&P. And the median stock … Read more

Low Rates May Do Little to Entice Nervous Consumers

by

The Federal Reserve’s announcement last week that it intended to keep credit cheap for at least two more years was a clear invitation to Americans: Go out and borrow. But many economists say it will take more than low interest rates to persuade consumers, a crucial driver of the nation’s economy, to take on more debt. There are already signs that the recent stock market upheaval, turbulence in Europe and gridlock in Washington over the federal deficit have spooked consumers. On Friday, preliminary data showed that the Thomson Reuters/University of Michigan consumer sentiment index had fallen this month to lower than it was in … Read more

|| Equities, Forex, Gold, Silver and Oil Trading

by

BEST BUYS IN EUROPE NYSE:FTE, ETR:CBK, NYSE:AEG France Telecom SA (ADR) NYSE:FTE, Commerzbank AG ETR:CBK, AEGON N.V. (ADR) NYSE:AEG make up the Shayne Heffernan European Hot List. European Stocks should outperform in Q3, for those brave enough to buy now big returns are on offer over the next few years. France Telecom SA (ADR) NYSE:FTE has been upgraded to a strong buy with a 2012 price target of $31 issued today by Shayne Heffernan. In a note to traders today Shayne Heffernan pointed to the strong dividend history currently paying at 8.76% and the low PE of under 12 as … Read more

Pension Pulse: Forget 2008, This Is Like 1987!

by

THURSDAY, AUGUST 11, 2011 Forget 2008, This Is Like 1987! Finally, someone who makes some sense! David Kotok of Cumberland Advisors was interviewed on Yahoo Daily Ticker stating, Forget 2008, This Is Like 1987: After dramatic moves in the futures markets, U.S. stocks opened higher Thursday morning after European bourses reversed early declines. via Pension Pulse: Forget 2008, This Is Like 1987!.

Are Computers Bringing Down The Stock Market?

by

Any time something bad happens, we’re always looking for a reason why. Some would say that we’re always looking for someone or something to blame but our motives may simply be to make sense of a situation that feels like it’s spiraling out of control. The world’s financial markets have definitely felt that way as of late.   There’s plenty of blame to go around. Some people blame the Obama Administration while others like CNBC’s Jim Cramer say that the European banks are in the midst of their own 2008 and that is causing financial contagion worldwide. The blame doesn’t … Read more

Fed Said to Follow Basel Capital Rules for Biggest U.S. Banks

by

Aug. 10 (Bloomberg) — Federal Reserve officials are drafting rules for the biggest U.S. banks that won’t be more stringent than international capital standards agreed to in Basel, Switzerland, according to a person familiar with the discussions. Federal Reserve Governor Daniel Tarullo cited a “goal of congruence” between the Basel standards and the Fed’s work on rules under the Dodd-Frank Act, which overhauls banking regulation, in a June 3 speech. The central bank hasn’t veered from that, according to the person, who declined to be identified because the rules are still being drafted. The Basel Committee on Banking Supervision, which … Read more

White House Said to Set Goal Easing Housing-Price Pressure

by

Aug. 10 (Bloomberg) — The Obama administration is seeking ideas from investors on how to convert thousands of foreclosed properties owned by government-backed entities into rental homes, administration officials said. The Federal Housing Finance Agency, the regulator of Fannie Mae and Freddie Mac, will be joined by the Treasury Department and the Department of Housing and Urban Development in soliciting proposals, said the officials, who requested anonymity because they were not authorized to speak publicly in advance of an announcement planned for later today. The goal is to reduce the number of foreclosed properties and ease the price pressure on … Read more

GOLD HITS RECORD HIGHS, MINERS UNDERVALUED

by

Gold traded at new highs today however many quality gold miners have not reflected the strong gains in Gold in 2011. Gold miners in general are undervalued, Junior Gold companies are also very attractive as we expect to see consolidation in the industry as high prices drive take-overs and buy-outs. Spot gold was set for a second consecutive daily trading rally, up 2 percent from Friday at $1,696.56 an ounce by 1342 GMT, having hit a record $1,715.01 earlier and having traded at all-time highs in sterling and euros . Investors have bought more gold in the last month than … Read more

Beyond debt woes, a wider crisis of globalization?

by

(Reuters) – The crises at the heart of the international financial and political system go beyond the debt woes currently gripping the Western world and to the heart of the way the global economy has been run for over two decades. After relying on it to deliver years of growth, lift millions from poverty, keep living standards rising and citizens happy, nation states look to have lost control of globalization. In the short term, that leaves policymakers looking impotent in the face of fast-moving markets and other uncontrolled and perhaps uncontrollable systems — undermining their authority and potentially helping fuel a wider backlash and … Read more

Congress Fails The People

by

US voters disapproval of Congress hits all time high Disapproval of Congress rose to an all-time high after weeks of rancorous partisan battles over raising the US debt ceiling took the Nation to the brink of default, according a New York Times/CBS News public opinion poll published Thursday. A record 82% of Americans say they disapprove of the way Congress is doing its job, compared with 14% who approve, the poll found. The disapproval rating for Congress was the highest in the 34 yrs the question has been asked in the poll and up from the previous high of 77% … Read more

SEC, Rajat Gupta Drop Their Cases, for Now

by

NEW YORK—The Securities and Exchange Commission dropped its civil administrative proceeding against former Goldman Sachs Group Inc. director Rajat Gupta, but left the door open to pursue insider-trading charges against him in a civil lawsuit. The agency “is fully committed to the case and will proceed as appropriate,” a spokesman said Thursday. Specifically, the agency said that “it is in the public interest” to dismiss the administrative case but that “dismissing these proceedings will not prevent the Commission from filing an action against Mr. Gupta in United States District Court.” The SEC brought the administrative case against Mr. Gupta in … Read more

Small Firms Hunger for Sales, Not Credit .

by

Small-business lending has been in trouble, but is there an explanation beyond the widespread perception that banks are denying credit, and starving small entrepreneurs? Clearly, the financial crisis and recession whacked banks and curtailed lending to small companies. Lending still hasn’t returned to prerecession levels. But here’s an alternative view of the principal cause: A range of observers report that, in many cases, small businesses don’t want loans. Their sales are so weak they can’t justify taking on debt to expand operations. “It’s the sheer lack of expectation that they’re going to grow their company,” says Bernie Kuechler, of Barlow … Read more

Bernanke Models Prove Faulty as Fed Forecasts Succumb to Downward Revision

by

Chairman Ben S. Bernanke and his Federal Reserve colleagues are preparing to meet next week as two-year Treasury yields at a record low signal a U.S. economy on the knife’s edge between growth and contraction. Guiding their assessment of the outlook for the world’s largest economy will be forecasts contained in the so-called Teal Book, a confidential staff report with a blue-green cover. Policy makers’ confidence in those forecasts may be tempered as the course of the expansion has confounded their expectations. Of 12 Fed staff forecasts since the beginning of 2010, seven have been downward revisions to the near-term … Read more

U.S. Stocks Rise on Bets of More Stimulus; Treasuries Pare Gains

by

Speculation that the Fed will embark on a third round of asset purchases to stem off a recession grew after the Wall Street Journal reported that three former policy makers support the approach. More than $2 trillion was erased from the value of global equities in the past week, and Treasury yields set new lows for the year, amid concern the economic recovery is faltering. Service industries grew in July at the slowest pace since February 2010 as orders and employment cooled, Institute for Supply Management data showed today. Full article provided by Bloomberg @: http://www.businessweek.com/news/2011-08-03/u-s-stocks-rise-on-bets-of-more-stimulus-treasuries-pare-gains.html