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Markets
More signs of liquidity withdrawal, now from the U.S. Treasury
Yesterday I mentioned the announcement by the FDIC to end its debt guarantee program and opined that this was the first sign of tightening/liquidity withdrawal by the U.S. government. Today the evidence is mounting that this is indeed…
American Casino: How foreclosures breed mosquitoes
A number of new films have been produced chronicling the misadventures in America’s residential property markets and financial system. One such story is American Casino. I have yet to see the film. However, below is a…
Dollar falls to lowest on year
The U.S. Dollar fell to its lowest against the Swiss Franc and Euro, while the Canadian dollar and the Scandinavian currencies are also near year highs as well. If you read Bloomberg, you might think this has to do with a bullish equity…
China issues bonds to “promote the RMB in neighbouring countries”
In the latest move toward China’s long-term strategy of internationalising its currency, the Chinese Ministry of Finance announced today it will issue government bonds valued at 6 billion yuan in Hong Kong. The last article I wrote on…
Selling the good news does not a bull market make
So we started September in an ugly way. With the markets down 2% across the board, and oil and bond yields also falling. Forgive me for thinking this is a bad sign, but selling on good news doesn’t sound very bullish. And the…
Bank leverage: forever blowing bubbles part two
You have heard me use the phrase “liquidity is seeking return” to describe the increase in the price of riskier assets due to monetary stimulus. The Bloomberg News video clip below points to an increase in lending for buyers of riskier…
The U.S. Dollar circa 2005
This skit comes from Saturday Night Live in 2005, back when the Dollar was weak. It’s pretty funny. Hat Tip Andrew.
Getting bearish again
You have probably noticed a change in tone at Credit Writedowns since about June, but a lot more in the past month or so. Once mildly bullish due to the deeply oversold levels this Spring, I have become increasingly alarmed at the…
Existing home sales add to the parade of bullish data
Data on existing home sales were significantly above expectations with a seasonally-adjusted annual rate of 5.24 million sales registered according to the National Association of Realtors (NAR). The NAR released a statement on the…
Major selloff coming?
Stock markets are seriously overbought right now. But, the rally in shares has been bolstered by better than expected economic data and earnings reports. I first pointed to a rally in shares in March, but I didn’t get fully onboard until…