July, 2011
President and Tea Party Win Big, the National Interest Be Damned
In the debt ceiling melodrama, the President and Tea Party each had political objectives and national interests to serve. Politics won out.
U.S. Equities 7/29
Dow Jones is on some critical support levels at the moment. The 23.6 Fibonacci retracement level was reached on Friday, July 29, 2011. If this level is breached, we will have very strong technical support at 12000 (200 –days moving average) and the full retracement target of 11850.
GDP Growth Goes Flat
The economy expanded a tepid 1.3 percent in second quarter as consumer spending went flat, and imports drained off much of that domestic demand. Higher oil prices, Wall Street contracting and local governments retrenching are killing growth. All on top of a huge trade deficit with China, which sends much of what is not spent [...]
U.S. Equities
Dow Jones plunged 198 points today because the United States politicians were still unable to reach an agreement on the debt limit. The key support 11800 and resistant 12750 levels are still intact from a technical standpoint. The U.S. 10-years yield is still only 3% despite the United States about to go into default and [...]
Cognitive Dissonance and the Debt-Ceiling Morass
Cognitive dissonance-a refusal to accept objective facts that define rational behavior-is at the root of impending disaster in Washington.
Farewell to Pork Belly
The clock is still ticking on the U.S. debt limit. The markets were relatively calm considering the United States is about to go into default. The action is in the foreign exchange markets as the USD hits a new low against most of the major currencies.
Gold – July 25th
Dow Jones Industrial Averages fell 88 points today. Gold price made a new high, reaching $1624 per ounce before settling at $1614 at the New York market’s close. The markets were concerned with the inability of the United States politicians to make a deal on the debt limit issue. The clock is ticking and the [...]
No Budget Deal Possible until the Adults Come to Play
Any parent knows, adolescents are inclined to deny facts when told something they want is not possible. Poor Speaker Boehner is frustrated by Capitol Children’s Players.
Heading off a Securities Market Panic
As Congressional negotiators and the President struggle to obtain a deal to raise the federal debt ceiling, securities markets may soon panic at the prospect of those negotiations failing.
Scapegoats and Deficits
It is an article of faith among Democrats that the Administration of George Bush caused plagues, pestilence and the nation’s economic woes-and by derivation the political morass that bests Washington.
Top News
- Asian markets tense before Fed; Nikkei outperforms June 19, 2013By Ian Chua SYDNEY (Reuters) - Japanese stocks rose on Wednesday, thanks to a positive lead from Wall Street and a softer yen, outperforming the rest of Asia which anxiously waited for clarity on the U.S. Federal Reserve's next policy step. Major currencies, commodities and U.S. Treasuries were subdued and European stocks were expected to open steady ah […]
- Investors look for answers on economy from Fed June 19, 2013WASHINGTON (AP) — Worry and speculation have consumed investors since Chairman Ben Bernanke spoke to Congress last month about the Federal Reserve's drive to keep long-term interest rates at record lows. […]
- Oil falls near $98 a barrel before Bernanke speaks June 19, 2013BANGKOK (AP) — The price of oil fell Wednesday, before the conclusion of a U.S. Federal Reserve meeting. […]
- Fed seen keeping options open on pace of bond buying June 19, 2013By Alister Bull WASHINGTON (Reuters) - Federal Reserve policymakers will likely announce on Wednesday that they will keep buying bonds at a monthly pace of $85 billion, while keeping their options open to scale back the program later this year if the U.S. labor market continues to improve. Economic data since the 19 officials met in May has been mixed. Emplo […]
- Asia Markets mostly down as investors eye Fed June 19, 2013SEOUL, South Korea (AP) — Asian markets were mostly lower Wednesday as investors waited for an update on the U.S. economy from the U.S. Federal Reserve. […]