2010

The Federal Reserve is attempting to reflate the US economy to close the output gap and create jobs. They have decided to purchase medium-term Treasury paper to do so. But monetary policy is a blunt instrument. QE is already having all…

Andy Lees of UBS writes that quantitative easing is having the (designed) effect of diluting and transferring US debt elsewhere. It is already a success. In a morning note he tells us: Yesterday Saudi shifted its oil price target…

Highlights The dollar weakness after the FOMC gave way to a pretty steady and small trading range through the Asian session.  But the dollar experienced a sharp selloff in the European session as investors further increased their…

Despite austerity in Ireland, things have gone decidedly pear-shaped for the Irish government as its bank bailout-ridden deficit has ballooned to a magnificent 32% of GDP and debt spreads to German bunds are at record levels.…

By David Galland, Managing Director, Casey Research Last month gold broke into new record territory – reaching an all-time high of $1,387 on October 14. A new record in nominal terms, that is. To top the previous high in…

Financial Bubbles | Wired Science | Wired.com Fed QEII: $600 bln over Next 8 Months (Anti-climatic?) | Credit Writedowns EUR/NOK | Credit Writedowns Four Rather Sick Patients | Credit Writedowns Fed Easing May Spur Deflation in…

The dollar has sold off on the news that the Federal Reserve will buy $600 bln of Treasuries over the next 8 months.  It will relax its 35% self-imposed limited per security.  This is in addition to the $35 bln per month it…

The Norwegian Krone looks interesting with oil prices high and the Norwegian domestic economy doing well. Andy Lees of UBS writes: Whilst I like the Norwegian currency, benefitting from its oil and gas, its oil fund and the fact that…

The Absolute Return Letter, November 2010 by Niels Jensen “If I were BoJ, I would set a trap for all the currency speculators in the world. I would intervene in the currency market, appearing unsuccessfully, to lure speculators to…

by Win Thin S&P affirmed Hungary’s BBB- rating but kept the negative outlook in place, signaling that all is not yet clear for the country.  We believe that markets have gotten too bulled up on Hungary lately and are overlooking…