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Monthly Archives: May 2010

German Short Sell Ban

Probably the most significant financial news was when the German financial system regulators spooked stock, bond, commodity, and forex markets this week. They announced a ban on naked short selling of stocks and bonds of Germany’s 10 largest banks, German sovereign bonds – called Bunds, and credit default swaps on Bunds. Short selling is where you borrow a security, then sell it with the plan to […] Read the rest of this entry »

The Abby Joseph Cohen Show

Abby Joseph Cohen is a Sr analyst at Goldman Sachs. She is trotted -out from time to time to be head cheerleader and hype things up.  On Thursday, CNBC TV interviewed Abby. She had the impossible job of trying to convince viewers that despite the fact that she sees the US economy slowing in the 2nd half of the year, she still sees the S&P500 index at 1250 – about 9% […] Read the rest of this entry »

$1T PIIGS Bailout

On top of the $145B Greek emergency loan package, we now have another loan package worth 750B euro or roughly $970B to help stave-off a default from any of the PIIGS: Portugal, Italy, Ireland, Greece and Spain. Here’s how it breaks out: The 15 eurozone countries (those countries that use the euro as their currency) other than Greece are on the hook for $570B.  […] Read the rest of this entry »

1Q 2010 GDP is weak

The 1st quarter advance GDP report was released. Estimates were for 3.4% growth, but we saw 3.2% reported. 3.2% GDP growth is very respectable and likely one of the highest growth rates we’ll see in the next several years.   The report’s good news is consumers increased spending and helped propel economic growth last quarter. The bad news is they reduced their savings rate […] Read the rest of this entry »

Housing is set for another dip

US Housing saw an increase in sales activity in April -as expected — since April lies in the peak of the annual housing sales cycle. Plus this April 30th marked the deadline for home purchasers to benefit from the extended home buyers credit.  Housing remains one of the core impediments to US economic growth. Given that we’re now living through a hangover period that […] Read the rest of this entry »

US Unemployment Update

Friday saw the release of the April employment report from the Bureau of Labor Statistics (BLS). Results were that we saw an increase of 290,000 jobs in April. This was the strongest rate of hiring in 4 years. So why didn’t the stock market rise on the good news?   I’ll leave aside the concerns over European debt, Thursday’s trade error, and that fact […] Read the rest of this entry »

PIIGS Update. Euro Meltdown?

The Economist magazine says “Greece looks bust”. No argument there… Given that we here in the US are essentially the pot calling the kettle black, we need to pay attention because the stakes are very high. How high?: several estimates for eventual losses on bonds from:Portugal, Greece & Spain total $800B. This is more than sufficient to bring down the large European Banks. As […] Read the rest of this entry »