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  • The ECB and eurozone governments are preparing to take co-ordinated action to buy government bonds in an attempt to bring down borrowing costs for Spain and Italy, Le Monde reports. The eurozone, via the EFSF and ESM rescue funds, would purchase debt directly from government and the ECB would act in the secondary market. The speculation comes a day after Mario Draghi's "whatever it takes" comment.  [View news story]
    Timmy begging Shauble for the bazooka won't work. Europe still has laws that prevent debt monetization by the ECB. I don't think Germany is as anxious to discard the rule of law as Timmy is and has been.
    Jul 28, 2012. 09:55 AM | 1 Like Like |Link to Comment
  • More on the late-day Fed leak: Officials have become impatient with sluggish growth and high unemployment, reports Jon Hilsenrath. MBS purchases, a pledge to keep rates low for longer, or even a move to push down nearly microscopic short rates even lower are among the choices available to the FOMC. Action could come at the July 31 meeting.  [View news story]
    In other words, the Fed is OUT OF AMMO! Pushing interest rates lower via jawboning, MBS props or any other way will have zero effect on the economy, especially as it slides into recession. If record low interest rates haven't already boosted the economy, nothing the Fed can do will. Pray your elected officials can come up with a plan, but that will be a waste of time (see Europe).
    Jul 24, 2012. 04:30 PM | 10 Likes Like |Link to Comment
  • Without Bailouts, Spain And Italy Are Likely Finished By The End Of 2013 [View article]
    Spain and Italy will default or restructure and Germany will leave the EZ by the end of 2012.
    Jul 24, 2012. 10:21 AM | Likes Like |Link to Comment
  • Eurozone flash manufacturing PMI dips to 44.1 in July vs. 45.1 in June, touching a 37-month low. Services PMI at a four-month high of 47.6 vs. 47.1 in June. Employment fell for the seventh month in a row and at the fastest rate in 2.5 years. The downturn shows no signs of letting up and "is consistent with GDP falling at a quarterly rate of around 0.6%, which is similar to the rate of decline we expect to see for the second quarter." (PR)  [View news story]
    Que global recession...
    Jul 24, 2012. 09:38 AM | Likes Like |Link to Comment
  • Fiscal Cliff Avoided? Senate Proposes Dividend Tax Break [View article]
    Global financial markets will go over the cliff months before the "fiscal cliff" is reached. Another shot of QE will make no difference for the economy, which is sliding into recession. The Fed probably realizes that the more QE it pumps into financial markets, the less likely our elected officials will act to address our intensifying economic and fiscal problems. In other words, the Fed knows it is destroying governance and the prospect of fiscal consolidation in the US via QE and ZIRP.

    Either the Fed will flood markets with QE and we go over the "fiscal cliff" or the Fed does no more QE, forcing a political compromise. It can't happen both ways. The eventual outcome for financial markets will be the same either way.
    Jul 16, 2012. 06:58 PM | Likes Like |Link to Comment
  • U.S. Economic Activity Is Worsening Fast [View article]
    NEWS FLASH: US ECONOMY IS ALREADY IN RECESSION! Now carry on with your speculative trading routine...
    Jul 16, 2012. 06:45 PM | 2 Likes Like |Link to Comment
  • Markets Pointing Toward Rally In Risk [View article]
    I thought you spending the week perusing the WSJ for hints of QE3. Now that's risk analysis!
    Jul 13, 2012. 09:35 AM | Likes Like |Link to Comment
  • Behind The Latest Sell-Off In EUR [View article]
    I can't wait for QE3! When it comes, the equity market pop will last less than a week. After that, it's back to the dark ages for stocks around the world...
    Jul 12, 2012. 09:35 AM | Likes Like |Link to Comment
  • Is The EUR/USD Heading Toward 1? [View article]
    Euro parity with the dollar will happen this year before the whole euro zone splinters. After Finland, Austria and Holland dump the euro, Germany will be forced to follow suit leaving the currency for Europe's debtor countries. The euro will drop to about 0.7 to the dollar in Q1 2013 after all of this unfolds.
    Jul 10, 2012. 12:36 PM | 1 Like Like |Link to Comment
  • A Classic Comeback Story: The Bullish Case For General Motors [View article]
    Check out last week's class action lawsuit by investors against GM in which your venerable company is accused of channel stuffing. It is highly improbable that GM is selling more cars, suvs and trucks while consumer confidence is dropping and real retail sales are contracting.
    Jul 8, 2012. 10:15 AM | Likes Like |Link to Comment
  • Chicago investor Karen Kalaway has sued Barclays (BCS), JPMorgan (JPM), Citigroup (C) and others for damage to her futures-trading business because of the manipulation of the Euribor rate. Kalaway hopes to represent all U.S.-based investors who traded in Euribor-related vehicles from 2005-2009. Is this just the beginning of the legal fun?  [View news story]
    The beginning of the end for the western financial system. Potential liability of banks globally exceeds $1 trillion. This will call for even more market manipulation to funnel taxpayer money to insolvent banks to maintain the charade of stability. The wizard is being exposed...
    Jul 8, 2012. 09:49 AM | 1 Like Like |Link to Comment
  • Fed Has Economic, Political Cover To Launch Bullish QE3 [View article]
    How long will it be before confidence in the Fed collapses? QE3 now would push prices in an already tight oil market (Iran embargo) much higher, ditto for the entire grain complex (corn up 40% in last 3 weeks). Instant global inflation would be the result, which will make everyone even poorer and less able to buy new GMs.

    The unfolding libor scandal will drag all the US banks down, as well as the Fed, into a mire of civil and criminal lawsuits. And this is just the tip of the iceberg of financial market manipulation by the banks and central banks.

    Cry for your Fed bailout but all that Tsar Bernanke can do is try and talk the market up with whispers of more QE. The real fireworks will come in 2013 when the Fed moves to devalue the dollar...
    Jul 7, 2012. 02:49 PM | Likes Like |Link to Comment
  • U.S. Stock Market Complacency On Verge Of Collapse [View article]
    Really glad to see that one contributor here has a global view of what is happening in financial markets. Most contributors use any means possible to rationalize what is merely hope for more cowbell from Tsar Bernanke et al.

    The bailout boom that began when Geithner was at the Fed during the LTCM blowup is nearing its end with Europe now realizing that it can't save the weakest sovereigns and banks because the cost has become astronomical. Think too big to bail.

    As defaults roil Europe, the investment risk-free illusion world nurtured by the Fed since the late 90's will collapse along with credibility of its chairman and surrounding doves. Anything the Fed does from this point will only sharpen risk realization, pushing markets much lower.
    Jul 7, 2012. 09:19 AM | 1 Like Like |Link to Comment
  • Weak jobs data increase the likelihood of Fed action, but don't ensure it, according to Fed-whisperer Jon Hilsenrath (via). Some officials are interested in mortgage bond purchases, but the FOMC hawks want to reserve action for more serious threats, he reports. Stocks come off the lows, the S&P 500 -1.1%.  [View news story]
    Whisper, whisper little star is all the Fed can do now. Too close to the debt ceiling and grain prices skyrocketing for any more QE. Next Fed move will be $ devaluation in 2013. Got your physical gold?
    Jul 6, 2012. 03:26 PM | 2 Likes Like |Link to Comment
  • Another Confirmation Of The Emerging Global Credit Crisis [View article]
    SHTF now! Central banks are no longer able to hide the massive and increasing investment risk across all non=commodity assets globally. Risk realization is coming in a huge way and the Fed will be powerless to stop this i.e. more QE will be viewed as increasing investment risk further rather than hiding it as has been the case since 2008.
    Jul 6, 2012. 11:39 AM | Likes Like |Link to Comment