The RBA has announced how the CLF – a kind of pre-emptive bank bailout would work.
Of course… they won’t call it that.
November 29th, 2011 | Dan Denning | 6 comments | ContinuedArchive for Dan Denning
Dan Denning is the author of 2005's best-selling The Bull Hunter (John Wiley & Sons). He began his financial publishing career in 1997 and has covered financial markets form Baltimore, Paris, London and, beginning in 2005 Melbourne. He’s the editor of The Daily Reckoning Australia and the Publisher of Port Phillip Publishing.
Europe’s Credit Crisis is China’s Trading Problem
Europe isn’t a huge customer of raw commodities. But China is Europe’s largest trading partner. So there is a knock-on effect…somewhere down the line.
November 29th, 2011 | Dan Denning | 0 comments | Continued
Australian Government Bond Yields Fall
Australian government bond yields are under four per cent, and headed in the complete opposite direction of bond yields in Europe.
There are two important aspects to this story…
November 28th, 2011 | Dan Denning | 0 comments | Continued
IMF Considers Loan to Italy
If the IMF does find the money to loan to Italy, it will have to find money for Spain, and for Ireland, and for the Belgians (who just had their credit downgraded again over the weekend). Unless the Italian “solution” brought down government bond yields generally, the basic problem in Europe is still the same: the governments need to borrow more money than anyone actually has.
November 28th, 2011 | Dan Denning | 1 comment | Continued
Commodity Correction
Excellent. Australia has a brand new mining tax just in time for a huge correction in commodities. Yesterday we mentioned the probability that the bond crisis in Europe was inherently deflationary. Europe’s debt reckoning will result in massive deleveraging in the financial system. And the last time that happened, a lot of long-term speculative bets on commodities were liquidated.
November 23rd, 2011 | Dan Denning | 1 comment | Continued
US Bonds Ride Euro’s Demise
The looming breakdown of the Euro is a massively deflationary event for stock and commodity prices (although not US bonds, as you’ll see in a moment). It’s going to dominate the news until the moment reaches its crisis. And the crisis may be at hand.
November 22nd, 2011 | Dan Denning | 4 comments | Continued
MF Global the Broken Dealer
The collapse of broker-dealer MF Global Holdings Ltd. The firm declared bankruptcy on October 31st after making a $6.3 billion bet on European government debt. And that was the good part of the story.
November 21st, 2011 | Dan Denning | 3 comments | Continued
Let The Fireworks Begin
“Very little has changed in the last week,” writes Slipstream Trader Murray Dawes. “European bonds continue to implode and the Equity market is continuing to ignore it at their peril. When credit markets and equity markets diverge it is uncanny how often the credit markets are right and the equity market is wrong.
November 16th, 2011 | Dan Denning | 2 comments | Continued
The Case of Mines
You know that saying, “If you don’t have anything nice to say, don’t say anything at all”?
We’ll now turn today’s Daily Reckoning over to Slipstream Trader Murray Dawes. Remember, yesterday’s DR included a chart showing the price of Brent Crude oil. Murray generally applies his theory of price action to stocks and indexes. But it can be useful for currencies and commodities, too.
November 9th, 2011 | Dan Denning | 5 comments | Continued
Bi-hydrocarbonic Investments
At the risk of further alienating readers, we’re going to push ahead with the idea that the world needs energy and will have to keep getting at least some of it from hydrocarbons like oil and natural gas. Every time we broach this subject it costs us readers. We get nasty emails and unsubscribe requests in droves. It’s bizarre.
November 8th, 2011 | Dan Denning | 5 comments | Continued
Energy Wild Cards
The day fast approaches when Greece will ditch the euro, default on its debt, and leave Europe to deal with Italy and Spain. And the fall of the European centrists is nigh. But before we get to that, we want to begin another week of reckoning with a practical investment observation about energy.
November 7th, 2011 | Dan Denning | 4 comments | Continued
The Mineral Resources Rent Tax Siphon
Green and Gold Greed…
The last thing Australia needs right now is to worry that China’s manufacturing economy is sputtering. After all, that Chinese engine of growth consumes huge amounts of Australian resources, like coal and iron ore. The government is keen to siphon off revenue from mineral and energy exports in order to do what it does: take from one party in order to give to another, while sounding self-righteous and looking important.
November 2nd, 2011 | Dan Denning | 5 comments | Continued
The Deeper the Greek are in Debt
“Hooray” for democracy.
From out of the blue, Greek president George Papandreou has called a referendum on the Greek debt situation and whether Greece should accept the terms of the financial and political surrender imposed on it by the “Troika” of interventionists from the International Monetary Fund (IMF), the European Union (EU), and the European Central Bank (ECB).
November 2nd, 2011 | Dan Denning | 3 comments | Continued
Gold, Silver, and the New Opium Wars
Watching the global currency markets right now is like watching a horse race nobody wants to win. The closer a currency gets to the lead (world’s strongest) the more its jockey (the central bank) does to slow it down. Some of the horses have been run into the ground. And as we come down the home stretch of the competitive currency devaluation sweepstakes, it wouldn’t surprise if one of the jockeys took out a shotgun and blasted his mount away.
November 1st, 2011 | Dan Denning | 4 comments | Continued
Qantas – a Grounded Investment?
What a weekend! Qantas was grounded. Now it’s un-grounded. Airline union strike action is certainly putting workplace laws through their paces. And everyone had something to complain about!
We don’t have much to say about it except that it roughly fits with our theory that the world is contracting.
October 31st, 2011 | Dan Denning | 4 comments | Continued
