money

Wow! That was an exciting, but stomach churning day in the markets. The Dow was way down, 358 points. Oil soared to a new high over $140 a barrel. The Euro hit a record against the yen. The TED spread is rising. Did I miss anything?…

The wage-price spiral is now underway in core Europe as German wages are on the rise. The ECB will surely act as it has no other choice with inflation now the dominant economic concern across the Eurozone.Today, German daily Der Spiegel…

I have been following a story for a few months in the Canadian Press on Transat, a tour operator. I hadn't reported on it until now because they were just bailed out. It seems they have gotten tangled in the ABCP (Asset-Backed Commercial…

Oil prices aren't high because of greedy oil companies or backstabbing middle eastern countries. Oil prices are high because of easy money. That is the message of David Uren in today's Australian. I subscribe to his view but add in peak…

As we get ready for another grueling weak in the markets, one can see that market risk is high. Weekends are always a time of great nerves because there are no trades to validate or question one's market view. However, this weekend is…

For those of you who have been reading my blog for some time, you'll know that I believe deflation is the longer term threat to the global economy despite the temporary inflationary pressures. However, I did believe that the Federal…

Barron's sees recovery in credit markets where others, most notably RBS, are bearish. Who's right? Let's hope Barron's. But, only time will tell.Barron's had this to say: eight important credit-market indicators and their current…

That's the question RBS is asking. In recent research, Bob Janjuah, the bank's credit strategist, advises clients to move to safety in anticipation of potential market volatility. The crux of the matter is inflation and central bank…

Mervyn King correctly assessed inflation risks to be temporary and the downside to come from the real economy. It sounds like he is not hawkish. Chances of a rate cut are down now. I believe the BoE wants some inflation to help do the…

Below is the inside scoop according to famed Washington insider Robert Novak (It remains to be seen whether his sources are reliable). At the bottom is a link to an article from the Telegraph quoting Morgan Stanley's economic team…