On QE’s Effect on Gold, Emerging Markets and Other Links

The QE1, Victoria Harbour 1972

QE’s effects and afterthoughts

The Fed came out with a plan that was devilishly clever in that it was not geared to the short end but also allowed the banks to continue to benefit from a steep yield curve by dampening rates in the belly of the curve. This is having an impact beyond bonds though as the market was up 2% across the board. Emerging market, European, Asian shares were all up. Gold, silver and commodities are all up too. Asset price reflation is what we got on day one of QE2.

• Jim Sinclair – Gold Bottomed, Dollar Index Headed to 56 – King World News
• Review & Outlook: More Monetary Cowbell – WSJ.com
• U.S. dollar printing is huge risk: China central bank adviser| Reuters
• Emerging market policymakers vow to combat Fed’s QE2| Reuters
• FT.com – Mohamed El-Erian – QE2 blunderbuss likely to backfire
• Currency wars and the emerging markets | vox
• Time to leave LatAm’s overvalued markets? | beyondbrics | FT.com
• EconomPic: Front-End Loves… Long-End Hates… QEII

The QE2, not looking a bit naff

The Usual Fare

• Municipal Bond Market Isn’t Facing Collapse, Wells Fargo Says – Bloomberg
• Meredith Whitney: State Bailouts? They’ve Already Begun – WSJ.com
• Estrategias "Stock Picking" 101 – BOLSA: Revista Mensual de Bolsas y Mercados Españoles
• BBC News – UK house prices face ‘mixed picture’
• Die wunderbare Welt der Wirtschaft!: Irlands Renditen nur noch knapp unter Euro-Rettungszins
• FT Alphaville » The world backs away from Ireland, Spain, Portugal
• FT.com – Portugal’s cost of borrowing hits fresh highs for the year
• Special Report – White House to business: Can’t we be friends? | Reuters

Credit Writedowns

• A Minskian View of the Causes of the Current Crisis | Credit Writedowns
• BBH Weekly FXView: $600B in Asset Purchases, Now What? | Credit Writedowns
• The Aggregate Picture on Mortgage Delinquencies and Foreclosures | Credit Writedowns
• (Don’t Fear) The Reaper, The Fed Says ‘More Cowbell’ | Credit Writedowns
• Will trade action bring back American jobs? | Credit Writedowns
• Chart of the Day: NY Spot Gold and Commodities Respond To Fed Money Printing | Credit Writedowns
• QE Proving a Success But Emerging Markets Respond | Credit Writedowns
• Next Up – BoE and ECB | Credit Writedowns
• Stat of the Day: Ireland soars to number three for highest government default probabilities in the world | Credit Writedowns
• Silver…Silver…Silver….’More on the Case of Silver’ | Credit Writedowns

Tech Stuff

• Twitter Bot Auto-Debates Climate Change Critics – Mashable
• comScore: Android Continues To Close In On Apple, RIM

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