Category Archives: Credit

Krugman’s Dangerous Misreading of the Bond Market

Posted on October 14, 2010 by macromon

During his Sunday appearance (click for interview) on This Week With Christiane Amanpour, Paul Krugman spoke the words that make us very uncomfortable. Responding to French finance minister Christine Lagarde’s fiscal austerity and Alan Greenspan’s caution about further stimulus, Krugman … Continue reading →

Posted in Bonds, Commodities, Credit, Currency, Equities, Gold, Policy, Politics, Sovereign Risk | Tagged , , , | 2 Comments

“All that liquidity ends up not where it is supposed to be…”

Posted on October 13, 2010 by macromon

Great CNBC interview (click for video) with British historian, Niall Ferguson.  It’s worth the 5 minutes of your time.  We’re amazed how well Ferguson understands the global economy and articulates the risks better than many trained economists.   Money quotes: “There … Continue reading →

Posted in Black Swan Watch, Bonds, BRICs, China, Commodities, Credit, Currency, Monetary Policy, Policy, Sovereign Risk | Tagged , , , | Leave a comment

“I’ve already considered that idea and rejected it.”

Posted on October 12, 2010 by macromon

We found Ezra Klein’s take on Steven Rattner’s, Overhaul, quite amusing, [Larry] Summers is also one of the book’s more amusing characters. His intellectual and managerial style are distinct enough that the index has six entries under “Larry Summers; style.” … Continue reading →

Posted in Credit, Equities | Tagged , , | 1 Comment

Rising Tide (of liquidity) Lifts All Boats

Posted on October 12, 2010 by macromon

Great chart from Active Trader of the S&P5oo correlation with other markets.  Have you noticed recently that all markets are moving together?  U.S. Treasuries, domestic and foreign stocks, Greek Bonds, EM Debt, commodities, and foreign currencies all in lockstep? This … Continue reading →

Posted in Bonds, BRICs, Commodities, Credit, Currency, Equities, Gold, Monetary Policy, News, Policy, Sovereign Risk | Tagged , , , , | Leave a comment

Europe’s Ricardian Equivalence vs America’s Keynesianism

Posted on October 11, 2010 by macromon

We thought this to be the most interesting chart of the recently released World Economic Outlook from the IMF.  Japan’s 2011 public sector funding requirement is a stunning 60 percent of GDP, which includes the rollover of maturing debt equivalent … Continue reading →

Posted in Bonds, BRICs, China, Commodities, Credit, Currency, Monetary Policy, Politics, Sovereign Risk | Tagged , , , , , , | 7 Comments

The Store of Value Trade

Posted on October 8, 2010 by macromon

Commodity prices closed at two year highs.  Bloomberg writes, The Reuters/Jefferies CRB Index of 19 raw materials jumped as much as 2.7 percent to 295.17, the highest level since Oct. 15, 2008. Every price advanced. Wheat, soybeans and corn led … Continue reading →

Posted in Bonds, Commodities, Credit, Currency, Monetary Policy, News, Policy, Politics | Tagged , , , | Leave a comment

Paradox of Zero Interest Rate Monetary Policy: Loose is Tight

Posted on October 6, 2010 by macromon

Let us take a moment to say we’re thankful for central bankers!  They have an extremely difficult job, make monumental decisions under great pressure and uncertainty, only to be constantly second guessed by a crowd of ignoramuses, including us! Someday … Continue reading →

Posted in Bonds, BRICs, Credit, Currency, Monetary Policy, News, Policy, Politics, Sovereign Risk | Tagged , , | 1 Comment

Japan’s Currency War? Nonsense!

Posted on October 5, 2010 by macromon

Take a look at a 30-year chart of the Yen to see if Japan is trying to weaken its currency in a “beggar thy neighbor” policy.  The Yen has appreciated 50% against the dollar since 2007 and is at an … Continue reading →

Posted in Commodities, Credit, Currency, Geopolitical, Gold, Monetary Policy, News, Policy, Politics | Tagged , , | Leave a comment

Fed, ECB throwing world into chaos – Stiglitz

Posted on October 5, 2010 by macromon

These are the headlines from an earlier Reuters report.   Joe Stiglitz is one smart dude (OSD) and was the World Bank’s chief economist during the 1997 Asian Financial Crisis and 1998 Russian Debt Default.   He says the ultra-loose monetary policy … Continue reading →

Posted in Black Swan Watch, Bonds, BRICs, China, Commodities, Credit, Currency, Geopolitical, Gold, Monetary Policy, News, Policy, Politics | Tagged , , , , , , | 3 Comments

The Three Legs of the Q4 Melt-up

Posted on October 5, 2010 by macromon

1)  Under allocated investors… 2)  Expectation of a Republican victory in the  November election… 3)  The Flood of Liquidity unleashed by ultra-loose global monetary policy… “The Bank of Japan will encourage the uncollateralized overnight call rate to remain at around … Continue reading →

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