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Monthly Archives: June 2012

Is Buy and Hold for Suckers?

  We’re told a picture is worth a thousand words. What does this picture tell you?   Don’t over-think it. The answer is quite obvious. It is: a nearly risk-free form of investment (moneymarket) has handily beaten the supposed champion of the investment world: the US stock market — for the past 12.5 years. And this is with money market earning next to nothing […] Read the rest of this entry »

Financial Turmoil Is Brewing

  Big Picture: A growing pile of dissappointing economic data tells us the global recession is spreading. The Fed is going to extend the maturity of its balance sheet (via O.T.) but not extend the balance. No QE3 yet. As expected. The crisis in Europe -now over 2 years old- continues to fester. We’re reaching a crescendo. Again. Something big and credible must come […] Read the rest of this entry »

The Fed’s Operation Twist — the extended version. (Greedometer update)

  Since late last year, I’ve been expecting the Fed’s Operation Twist 2.0 to be launched in August this year (that’s what I wrote in a section of the book — when I wrote it 6 months ago).  Apparently I was way off!  Per Dr. Bernanke’s announcement today, there won’t be a break in the Operation Twist program at all (it was slated to […] Read the rest of this entry »

Greek Electoral Math

There are 300 seats in the Greek Parliament. You need a majority (150+) to govern. If your party can’t win an election with an outright majority, you can form a coalition with other parties.  There are 7 political parties in Greece, so coalition parliaments happen a lot. With today’s election result, it looks like we’re likely to see the New Democracy Party (ND) win […] Read the rest of this entry »

Hold your breath

  Hello everyone. From time to time, I review the website statistics. This year has yielded surprising reports. The explosive growth in visitor traffic from New York, London, Singapore, Melbourne, Toronto, and other places has been interesting. Over the past few months, there has also been a large increase in the number of visitors from Cisco Systems.  When I was a Nortel engineer, Cisco […] Read the rest of this entry »

The fine print on Spain’s new €100B credit card

  This should have been a big day for Spain, Italy, the rest of the PIIGS, and risk assets (stock markets) everywhere. But it wasn’t. The S&P500 dropped 1.25%. As you know, the Europeans cooked-up bailout #4 over the weekend. This time, it was for Spain. It was pitched as being ‘way too big’ and therefor akin to a ‘financial bazooka’. The IMF said […] Read the rest of this entry »

Short Economic Stories June 9 2012

  Here in the US: The Fed: Ben Bernanke gave an update on the US economy on Thursday. It was time for the “Beige Book” report — a report summarizing the economy in all 12 Fed regions that happens 8 times a year. The latest news suggests the economy was doing slightly better in early April to mid May than in the first quarter. […] Read the rest of this entry »

Spain is bailed out!

On Friday the denial stopped. Spain admitted it needed outside help. A bailout. Today (Saturday), Spain asked the EU for a bailout of its banking system but did not say how much they’d like. Spain did say, however, that they wanted to wait until June 21st to have the results of two studies suggesting how much money they’ll need. The EU blinked and offered €100B […] Read the rest of this entry »

Short Economic Stories June 2 2012

  As we wave goodbye to the month of May, we take note of the $4T – $5T in wealth that evaporated from global equity markets so far in 2012. Last week was a tough week to be long risk assets (translation: a bad week to own stocks, REITS, junk bonds, and commodities). But as you know, this is the opening salvo. The worst […] Read the rest of this entry »