Here's a funny Xtra Normal cartoon floating around about quantitative easing. I'd like to see one on robo-signing.
Barclays to End Sponsorship of London Bike Program
21 minutes ago
"I'm hopeful that, I'm confident in fact, that the bank regulators will pay close attention to the kinds of loans being made and making sure that underwriting is done right [whoops]. But I do think that this is just a localized problem and not something that will affect the national economy."
"For most people, the former bit about homeowners not paying their damn bills is the important part, while the latter, about the sudden and strange inability of the world's biggest and wealthiest banks to keep proper records, is incidental. Just a little office sloppiness, and who cares?
But in reality, it's the unpaid bills that are incidental and the lost paperwork that matters. It turns out that underneath that little iceberg tip of exposed evidence lies a fraud so gigantic that it literally cannot be contemplated by our leaders, for fear of admitting that our entire financial system is corrupted to its core......" [full article at RollingStone.com]
"The Fed has spent most of the last 15 to 20 years manipulating the stock market whenever they feel the economy needs a bit of a kick. I think they know very well that what they do has no direct effect on the economy. The only weapon they have is the so called wealth effect"
"What are they going to use as ammunition if they (the Fed) cause another bubble and it breaks, let's say, in a couple of years? Then we might have some real Japanese type experiences"
"We don't like to play games with overpriced assets and that's the world that we're in now. The Fed is driving the S&P, which is overpriced— the Standard & Poor's 500— a broad measure of the U.S. market, is driving it from already substantially overpriced into what I would call dangerously overpriced. This is about the boundary line. We expect on a seven-year horizon one percent only plus inflation from the U.S. market. And now, as you push it up another 20 percent perhaps in the next year, it becomes dangerously overpriced."
"*The age of cheap oil is over, though policy action could bring lower international prices than would otherwise be the case
*Global energy use grows by 36%, with non-OECD countries – led by China, where demand surges by 75% – accounting for almost all of the increase
*Demand for all types of energy increases in non-OECD countries, while demand for coal & oil declines in the OECD
"National/Four Region Overview: National home prices have changed -5.0% quarter-over-quarter. In fact, looking at national home prices since their mid- August peak, price declines are even more dramatic, changing -6.8%.
"According to the third quarter Zillow Real Estate Market Reports, home value depreciation began to accelerate again in September, fueled by lower transactional volumes and increased inventory levels. Home values dropped 0.4% from August to September and 4.3% from September 2009 (see Figure 1 below)."
"Even though the S&P 500 is substantially below its 2007 peak, it is also strenuously overvalued once again"
"Keep in mind that the effective duration of the S&P 500 is now over 50, which implies two things. First, the sensitivity of stock prices to any rise in yield will be exaggerated here. Every 10 basis points of increase in yield (say, from the current 1.89% to 1.99%) implies a price decline of over 5%. Given that the historical norm of the S&P 500 yield is about twice the present level, it is clear that a significant reversion of expected returns from presently depressed levels would require a massive price adjustment."
"My bet is that we get another washout, which will make the market healthy again. And we will go to even higher levels a year from now. But is gold, in the short term, preposterously, egregiously, exaggeratedly, shockingly, surprisingly over-bought? Oh, you bet it is." [read the full interview at HAI]I'm looking for TV interviews. Also check out the rising GLD channel from Feburary 2009. The upper-bound of the price channel hits between $148-154 on the chart if strength continues. Watch that uptrend line from August for any failures.
"Lower risk-free rates and higher equity prices—if sustained—could strengthen household and business balance sheets, and raise confidence in the strength of the economy. But if the recent weakness in the dollar, run-up in commodity prices, and other forward-looking indicators are sustained and passed along into final prices, the Fed's price stability objective might no longer be a compelling policy rationale. In such a case—even with the unemployment rate still high—we would have cause to consider the path of policy. This is truer still if inflation expectations increase materially." [read full article at WSJ.com]Hat tip Zero Hedge