Category Archives: News

Fed creating “grave distortions” – Brazil Central Bank

Brazil is considering additional measures to keep the Real from appreciating  any further.  We like the Economist’s Big Mac Index, which is based on the concept of purchasing-power parity, to get a sense of the over/undervaluation of a currency.  The … Continue reading

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

World’s Richest Women Are Chinese

The FT published an interesting piece on the world’s richest women, which came as a surprise: The world’s three richest women are Chinese – as are 11 of the top 20 – according to the Hurun List of Self-Made Women … Continue reading

Posted in China, News, Policy, Politics | Tagged , , | Leave a comment

Rising Tide (of liquidity) Lifts All Boats

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

Wall Street: The Speed Traders – 60 Minutes

In case you missed the excellent 60 Minutes piece on robo/algo traders.  It’s worth the 13 minutes of your time. How Speed Traders Are Changing Wall Street Steve Kroft Gets A Rare Look Inside the Secretive World of “High-Frequency Trading”

Posted in Equities, News, Policy, Uncategorized | Tagged , , | Leave a comment

Geithner’s Naughty List?

Look no further than the Economist’s Big Mac Index to understand who is on the Treasury’s Naughty List.  It uses July exchange rates,  so a bit dated as the most recent currency moves are not included. Interestingly,  Japan and Brazil … Continue reading

Posted in BRICs, China, Commodities, Currency, Monetary Policy, News, Policy, Politics, Sovereign Risk | Tagged , , , , , | 1 Comment

Picture of the Day: The Wealth of Nations

Great shot (magnified 22x) of a wood ant holding a microchip in its teeth.  This picture symbolizes, at least to us, the recipe for the “Wealth of Nations:”  1) the work ethic of the ant;  2) the technology of the … Continue reading

Posted in Geopolitical, News, Uncategorized | Tagged , , | 1 Comment

7th-Inning Stretch Reading

A little something to read during the 7th-inning stretch.  Go Giants! China China’s economy buoys super-spenders – CNTN China’s household wealth to double by 2015 – Reuters China Sold the Most Japanese Debt on Record in August – MoneyNews.com Commodities Commodities: … Continue reading

Posted in News | Tagged | Leave a comment

The Store of Value Trade

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

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!

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