November 2010 Monthly Archive

The “tail” risk of two Eurozones that wags the dogs …

We have been saying for years now that Germany is sucking the wind out of Europe. But, then again that should be a surprise to exactly no one who ever bothered to consider the initial structure of the so-called common monetary union. It wasn’t so common and it sure wasn’t structured for a lasting union. Read more

Risk: when it rains, it pours …

It’s resurfacing. Perhaps not in the exact same places or at the exact same frequency or with the exact same magnitude, but things are resurfacing. Read more

Artillery Fire Setting the Stage for an Economic Bombshell from the Fed

The markets are a bit shaken up – the Korean won is down more than 3%; the US dollar is the recipient of some safe-haven flow; the S&P 500 futures are down about 1% at writing. Read more

“All one market” concept – does gold lose its luster?

The all one market concept, by viewing “tops” soon after the Fed officially announced QE2 on November 3rd, suggests that all good liquidity news was already in the price: Read more

Risk appetite has shifted dramatically from yesterday to today…

The Ireland news and related concerns are calming a bit, even though there is still plenty of attention on China after they bumped up reserve ratio requirements again today. Take a look at the VIX action yesterday (latest price bar); seems the market was ready for a risk-back-on type of day. Read more

Risk sentiment: up and down and up and down …

Keep smiling: the US dollar has been supported by activity in China and Ireland. Throw in a relapse of the US housing market collapse and you’ve got yourself a recipe for a big, fat risk sandwich. Read more

Sick and tired of “sanction of the victim”

Is it a stretch to say the Chinese wish to destroy the United States? Maybe! But it isn’t a stretch to say that China wants to become the primary global economic and military power in the world. Read more


It may look like China is acting civil in responding to the rest of the world’s fingers pointed squarely their lead role in an imbalanced global economy. After all, the yuan has strengthened versus the dollar in the last couple days; China has been hiking bank reserve requirements and raising interest rates … with unusual frequency. Read more

A second guess.

The fun has begun and fiscal conservatives have taken back control of the US House. The rally in US stocks over the last couple months has been credited in part to this expectation that a shift in power within the US House of Representatives will help ease the burden of potential taxes and regulations that have heretofore been among the biggest reasons corporations have held back from hiring and investing. Read more