Today, Congress is going to pass quietly behind the scenes changes to the BANKRUPTCY LAWS illustrating the growing fear that we are going to see a sharp economic decline ahead. The proposed new law would eliminate protections for certain financial contracts that made big bank bankruptcies nearly impossible in the past. Under the current law, if a…
The Nigerian Naira and Russian Ruble have been the hardest hit in the last few days as oil-producing nations across the world see their currencies come under increasing pressure. With both hitting new record lows against the USDollar (with the Naira at 184.5, already exceeding the recently devalued currencies upper peg band at around 176 per USD),…
There is a perfect word that describes the current condition of governments and consumers around the world today. The word is obdurate, and it means to be stubbornly persistent in wrongdoing. The word comes to mind when witnessing the renewed enthusiasm of central banks to re-inflate old asset bubbles and to endlessly debase their currencies…
US equities (Russell 3000) took the lead with performance among the major asset classes in November, posting a solid 2.4% total return. US real estate investment trusts (REITs) were in close pursuit with a 2.0% advance, which builds on October’s spectacular 10.0% surge, based on the MSCI REIT Index. In third place: foreign stock markets…
Source After categorically denying it would ever plan to buy government bonds since the ECB was created, the opposition against such a plan seems to be decreasing as the central bank has stated that it plans to do everything it can to increase the liquidity in the system and to avoid a possible (and increasingly…
OVERNIGHT MARKETS AND NEWS December E-mini S&Ps (ESZ14 -0.40%) this morning are down -0.41% and European stocks are down -0.67% on global growth concerns after manufacturing data from China and the Eurozone disappointed. A slump in crude oil prices to a 4-1/3 year low has also undercut energy producers and oil service operators with Exxon Mobile and Schlumberger both down -1.3% in…
Last week was again largely positive for the major markets with only the UK’s FTSE losing ground. It marked the final trading session of November. In Europe over the course of the week, the FTSE was down by 0.42%, it closed at 6722.6, but made 2.7% over the course of the month; the Dax ended…
I keep replaying a recent conversation about risk in my head. You know how it is. Someone says something that does not make sense and you ponder why he or she fails to see what is obvious to you (and to many others). Let me explain. The speaker (whom I will call Bill) asserted that concerns on the…
The US dollar is mostly softer as North American participants prepare to return from what for many was a long weekend. The greenback had initially moved higher, hitting JPY119.15 while the euro slipped to $1.2420. The proximate cause was the continued fall in oil prices and news that Moody’s cut Japan’s credit rating to A1 from…
