Monthly Archives: December 2010

“A money-financed tax cut is…[a] ‘helicopter drop’ of money”

Posted on December 9, 2010 by macromon

Wow!  Sounds a lot like what the President and Congress just negotiated, no?  Tax cuts financed by QE2 and a possible QE3?  Break out the Apaches! Here is the excerpt from his famous  helicopter speech, given at the National Economist … Continue reading →

Posted in Budget Deficit, Commodities, Gold, Monetary Policy, Sovereign Debt, Sovereign Risk | Tagged , , , | 4 Comments

Shanghai Watch

Posted on December 9, 2010 by macromon

We’re are watching to see if the Shanghai Composite can hold its 200-day moving average right around 2,800.  There is widespread speculation the People’s Bank of China will raise interest rates this weekend for the second time in the tightening … Continue reading →

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Chart of the Day: Private Pension Fund Asset Allocation

Posted on December 9, 2010 by macromon

Today’s release of the Flow of Funds Accounts by the Federal Reserves shows the private pension fund sector asset allocation.  Though a slight uptick from 2Q2010, the data show private pensions remain significantly under allocated to equities compared to historical … Continue reading →

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Apple in Santa’s Bag

Posted on December 9, 2010 by macromon

The global frenzy for Apple products show no signs of letting up.  This is the best company in the world and not just a game changer, but defining the culture for younger generations.  The stock has been trading in $300-320 … Continue reading →

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Global Interest Rate Spike: Young Lady or Old Hag?

Posted on December 8, 2010 by macromon

The epic interest rate spike and U.S. bond sell-off during the past few trading days is generating a fierce market debate.  The bears see it as the beginning of a new phase of the crisis, where sovereign debt woes spread … Continue reading →

Posted in Black Swan Watch, Bonds, Economics, Sovereign Debt, Sovereign Risk | Tagged , , , | Leave a comment

Jon Stewart Catches Bernanke “Printing Money”

Posted on December 8, 2010 by macromon

Hillarious video of Jon Stewart’s take down of Ben Bernanke’s 6o Minutes interview this past Sunday.   Stewart referenced a 60 minutes interview in June 2009 where Chairman Bernanke said what the Fed was doing was “much more akin to printing … Continue reading →

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GOP plan: “Push states to bankruptcy and smash unions”

Posted on December 8, 2010 by macromon

In his Reuters blog,  James Pethokoukis states the biggest political battle in Washington next year will be the Congressional Republicans plan to:  a) avoid a federal bailout of financially troubled states; and b) cripple employee unions by pushing fiscally troubled … Continue reading →

Posted in Black Swan Watch, Charts, Muni Market | Tagged , , , , | 1 Comment

Einhorn: “Global Economy in a Period Between Two Crises”

Posted on December 7, 2010 by macromon

A must view Charlie Rose interview with David Einhorn, President of Greenlight Capital.   He is a very smart guy with an excellent track record. He speaks of the absurd way we calculate official inflation in the U.S. using the Apple … Continue reading →

Posted in Black Swan Watch, Budget Deficit, Economics, Sovereign Risk, Video, Whales | Tagged , | Leave a comment

December 7th – A Rate Move Which Will Live In Infamy

Posted on December 7, 2010 by macromon

CNBC puts an interesting spin on the stock market sell-off and reversal in almost all commodities today, blaming the SEC insider trading probe.  We have a different view, believing it was the historic rise in long-term rates. Today’s 23 bps … Continue reading →

Posted in Black Swan Watch, Bonds, Budget Deficit, Charts, Commodities, Credit, Crude Oil, Economics, Equities, Fiscal Policy, Gold, Politics, Sovereign Risk | Tagged , , | 3 Comments

China Rate Hike This Weekend?

Posted on December 6, 2010 by macromon

The China Securities Journal, not citing a source,  says the timing is right for a rate hike this weekend.  It would be the second of the current tightening cycle.   Reuters reports, “With reference to the central bank’s record of … Continue reading →

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