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  • More on jobless claims: At 335K, it's the lowest read since January 2008. The 4-week moving average declines 6.75K to 359.2K. A Marketwatch report say seasonal quirks could be behind the big decline, without giving any detail. The news combines with the big housing starts print to send S&P futures +0.6%, 10-year Treasury yields to 1.87%, gold -0.6%, and the dollar higher across the board. [View news story]
    Agreed, and this doesn't concern you ? The Fed is running out of drugs for this market- they've already started to waiver (see last Fed minutes)
    Jan 17, 2013. 10:16 AM | Likes Like |Link to Comment
  • More on jobless claims: At 335K, it's the lowest read since January 2008. The 4-week moving average declines 6.75K to 359.2K. A Marketwatch report say seasonal quirks could be behind the big decline, without giving any detail. The news combines with the big housing starts print to send S&P futures +0.6%, 10-year Treasury yields to 1.87%, gold -0.6%, and the dollar higher across the board. [View news story]
    Macro: Don't understand the argument here....the market hasn't been correlated to the economy since QE started. It's easy to go shopping with found money and justify it later (i.e. celebrating a housing market that, while improving, hasn't even reached the level of an average year based on historical charts). I wonder where this market would be if the economy were actually doing well !
    Jan 17, 2013. 10:00 AM | Likes Like |Link to Comment
  • Markets Still In Slow Motion [View article]
    Is it just me or is anyone else out there not so terribly surprised that the Financials are able to post earnings "beats" with The Fed handing them free money hand over fist ?
    Two questions still remain: How long can the gravy train go before any ill effects are felt (?) and Is it really worth the trillion-dollar deficit The Fed is incurring so that a few banks can beat their lowered earnings forecasts for a few quarters ?
    Cheers !
    Jan 17, 2013. 08:40 AM | 1 Like Like |Link to Comment
  • A Relatively Good Deal Doesn't Mean It's A Good Deal [View article]
    Or perhaps banks and faux banks (i.e. GE, AIG, etc.) just have some extra $$$$$ sitting around thanks to their friends at The Fed. Seeing no worthy folk to lend their extra bucks, may as well go ahead and buy more stocks (particularly their own !)
    Jan 11, 2013. 10:47 AM | Likes Like |Link to Comment
  • The Stocking Is Mostly Full [View article]
    The Fed wanted to cause inflation and now they're causing it. Of course, they can't state that as a goal because it goes against their mandate, but they certainly dropped enough indirect hints. The real question becomes, IMHO, will they create so much inflation that they actually end up doing more harm than good- how far will they push this idiotic strategy before they decide that it isn't really working ? Try as he might, Dr. Bernankenstein cannot turn monetary policy into fiscal policy. Cheers!
    Dec 12, 2012. 08:44 AM | Likes Like |Link to Comment
  • Is It Too Late To Get Into The Housing Rebound? [View article]
    So, big-money investors are being underwritten by The Fed in order to artificially drive up prices in the residential housing market....and the media gleefully pronounces the housing market fixed ! That's great, but maybe someone can explain to me exactly why this is so wonderful for the economy. It seems to me that all this does is create unnecessary inflation and make it that much more impossible for the consumer to afford housing (while wages, at best, continue to stagnate).
    Dec 10, 2012. 08:39 AM | 1 Like Like |Link to Comment
  • Commercial Banking Industry Continues To Shrink [View article]
    Thanks for a most interesting and informative report ! Funny, but it looks like our government may be accomplishing the very problem it sought to fix (TBTF). In addition, all of this activity looks to be heading in the same direction- higher unemployment in the Financial industry (mergers just about always lead to layoffs. Closings speak for themselves). I've ben following your column and completely agree with your analysis of where this is all going...not very pretty. Cheers !
    Dec 7, 2012. 08:57 AM | Likes Like |Link to Comment
  • Fiscal Baby Steps Aren't Worth The Angst [View article]
    So, everything comes to a head in 2014, but who cares ? The Great Bernank will be gone by then (as he so timely announced), leaving the mess to someone else. Might I suggest Francoise Hollande, who can clean up everything simply by stating that everything has been fixed.Now, lets all click our ruby slippers together and repeat after Francoise....everything is fixed, everything is fixed......
    Dec 4, 2012. 08:48 AM | 3 Likes Like |Link to Comment
  • Bernanke Remains All-In For Whatever It Takes [View article]
    Philip Mause,

    Spoken like a true permabull ! Maybe you should run for office in Europe.
    Nov 21, 2012. 08:23 AM | 1 Like Like |Link to Comment
  • Conservative Positions For A Liberal World [View article]
    I think it's funny how the media keep trumpeting the dangers of going off the "fiscal cliff". In reality, we've already gone off the fiscal cliff and are looking for a soft place to land. Maybe we can pile up all of those free dollars Dr. Bernankenstein has been tossing around and land in them.
    Nov 13, 2012. 08:17 AM | 21 Likes Like |Link to Comment
  • Surviving And Prospering Over The Next 4 Years Of Economic Darkness [View article]
    Thanks for an interesting piece. Don't know who said it, but here's another quote for you: "don't put good money after bad." Under stagflation, which I agree is the present and future, I suspect there will be a lot of bad money (particularly with the added burden that the Obama regime has placed, and will continue to place, on businesses). One further note: I don't see how we can inflate away our growing debt (and this seems to be The Fed's strategy) when everyone else in the world is doing the same thing. It looks like a race to the bottom- a race no one really wins. Cheers !
    Nov 7, 2012. 08:42 AM | 10 Likes Like |Link to Comment
  • How Deep Is The Hole? The Federal Reserve And Housing [View article]
    Hello John,
    I follow your column fairly regularly and find it to be both informative and thought-provoking. I also happen to agree with your conclusions regarding The Fed's intentions and concerns.
    As a layman (non-banking type), I have a number of questions regarding The Fed's operation and I'm hoping you can help.

    First of all, what will The Fed be doing with the MBS that they buy ? I can't imagine anyone wants them, which is why The Fed is buying them in the first place.
    Second, who is actually paying for the MBS ? The Fed is spending ( I believe) taxpayer dollars, correct ? So, in effect, isn't The Fed just spending one taxpayer's money (all taxpayers) to assist other taxpayers (homeowners) ? Isn't this exactly what our congress (and most of the general public) said they didn't want to do at the initial time of the financial crisis ?
    Lastly, how does this eventually play out ? It's nice that The Fed is helping to sustain housing for a little while, but keeping prices artificially higher than they would "normally" be is only a benefit to some, and a detriment to a lot of others. I think this is called "inflation" and I don't see how this will help the economy in the long run. I also think it will have a number of other side-effects which will end up being destructive.
    Many thanks, and I look forward to your next article.
    Nov 5, 2012. 08:32 AM | 2 Likes Like |Link to Comment
  • Thumbs Down On Earnings [View article]
    Thanks for another lively report. Sorry to hear about your case of Pneu., but (on the bright side) just remember that many great artists did some of their best work when they were sick or out of their minds !
    Oct 24, 2012. 08:02 AM | 1 Like Like |Link to Comment
  • Markets Digest Earnings And Eurozone [View article]
    Hey Dave,
    Good luck with those meds (hope you're not paying out-of-pocket).
    I know the calendar says October, but I think we're still in August- that's still rerun season, isn't it ? Anyway, at least we have daylight savings to look forward to, which may be the only savings our friends at The Fed will provide for pensioners. Cheers !
    Oct 18, 2012. 08:32 AM | 1 Like Like |Link to Comment
  • Jobless Claims SNAFU [View article]
    I'm starting to think that if our government handled baseball statistics, Bud Harrelson would have been a .350 hitter....
    Oct 12, 2012. 11:33 AM | Likes Like |Link to Comment