Christmas Snow job on Wall Street Dow ended Christmas Eve Day above 18,000 for second day Catalyst was bigger than expected revision to Q3 GDP to 5% Big disconnect between economic performance and expectations Consumer spending up mostly on healthcare Inventory increases in expectation of future sales Data for Q4 is lower Home sales continue
Christmas Snow Job on Wall Street – Ep. 39 Read More »
In a normal economic times falling energy costs would be considered unadulterated good news. The facts are simple. No one buys a barrel of oil to display above the mantle. No one derives happiness from a lump of coal. Energy is simply a means to do or get the things that we want. We use
Could an Energy Bust Trigger QE4? Read More »
SNB Takes Snap From The Fed And Markets Run With The Ball Negative deposit rates in Switzerland send U.S. stocks up 420 points. Two-day Wall Street rally over 700 points on nothing but Central Bank inflation Swiss move triggers QE speculation and higher gold prices Janet Yellen merely suggested the economy is strong enough to
SNB Takes Snap From The Fed And Markets Run With The Ball – Ep. 38 Read More »
Yellen Bluffs Future Rate Hikes and Traders Pretend to Believe Her – Ep. 37 FOMC wrapped up meeting with Yellen press conference Most people expected “considerable time” to be dropped Bloomberg believes “considerable” dropped in favor of “patience” The Fed didn’t change anything The Fed didn’t actually say anything Markets up on Yellen’s optimistic non-news
Yellen Bluffs Future Rate Hikes and Traders Pretend to Believe Her – Ep. 37 Read More »
Apparently Bill Clinton, the man who helped us ponder what the meaning of “is” is, now writes statements for the Federal Reserve. With the economic statistics apparently painting a rosy economic picture (In my opinion: ignoring the more numerous data points evidencing the opposite), I feel the majority of observers believed that the Fed would finally
Fed Statement Stretches “Considerable” Considerably Read More »
You Know the Bubble’s About to Pop When Jim Cramer Gives Germany Economic Advice Ep. 36 Oil and Russia viewed to be at the epicenter of this week’s market chaos Why is the oil price dropping? The market anticipates a drop in demand due to global recession Winding down of QE triggering market instability Economic
The stunning 40% drop in the price of oil over the past few months has scrambled global economic forecasts, changed the geo-political landscape, and has severely pressured many energy sector investments. Economists are scratching their heads to determine if the drop is good or bad for the economy or whether cheap oil will add to
Black Gold Loses Glitter Read More »
Yellen’s Recovery is as real as George Costanza’s Hamptons Beach House Ep. 35 Volatile Friday followed by Monday rally trend The stock market has rallied very high very fast with little technical support. The gold market had its best week relative to equities. Only a dozen markets have beaten gold this year. Rally started with
Yellen’s Recovery is as real as George ‘s Beach House Ep. 35 Read More »
Was the U.S. Oil Boom Just Another Fed Inflated Bubble and is it Contained? Ep. 34 If oil goes down to $35/barrel we will not be able to produce oil for export at that price. It is no accident that oil prices are dropping as the Fed is ending QE. What are the implications for
Was the U.S. Oil Boom Just Another Fed Inflated Bubble and is it Contained? Ep. 34 Read More »
Much Ado About Nothing and Economic-Policy Truthers Ep. 33 Catalyst for the rally was the Retail Sales Report Cars represent the largest part of the gain Any slight good news is overblown Bad news is ignored Economy is not driven by spending Economy is driven by savings and production Gold stable and up on the
Much Ado About Nothing and Economic-Policy Truthers Ep. 33 Read More »