A bounce of 50% of what was lost is not unusual. That’s what happened after the Crash of ‘29, for example. So, there’s nothing exceptional about what we’re seeing on Wall Street.
November 17th, 2009 | Bill Bonner | 1 comment | ContinuedAll Posts Tagged With: "imf"
We Can Expect More and More People to Want to Own Gold
Gold seems to be advancing towards a new milestone – $1,100. Makes us nervous. We always feel more comfortable out in the wide, open spaces…
November 9th, 2009 | Bill Bonner | 1 comment | Continued
India Beats China to Walk Away With 200 Tonnes of IMF Gold
India’s central bank is now the proud owner of 557 tonnes of gold. That gives it the tenth largest gold holdings among central banks. But it probably isn’t finished. Gold makes up just six percent of India’s foreign exchange reserves. There’s plenty of room for that to grow.
But don’t forget China. China has $2.3 trillion in foreign exchange reserves…
November 4th, 2009 | Dan Denning | 5 comments | Continued
Rally in Stocks and Rise in Aussie Dollar is a Result of the Carry Trade
That’s just what happened last year. Only then, it was both a dollar and yen carry trade that led to a rise in Aussie assets. Once the credit crisis set in, the yen carry got dropped and investors fled risk assets and piled right back into the greenback and U.S. Treasuries.
October 29th, 2009 | Dan Denning | 9 comments | Continued
Banks Could Face Larger Asset Writedowns and Losses than IMF has Modelled
Next time around, though, we reckon the losses – when they come – will be on domestic real estate assets. And with so much exposure to domestic real estate (mortgage loans), the assets could face a world of hurt. But even if bank asset quality doesn’t crash (housing prices don’t crash), an external shock affects Aussie bank liabilities.
October 28th, 2009 | Dan Denning | 2 comments | Continued
IMF Report Concludes Aussie Banks are “Very Sound”…
The Guv also said he would not be too timid about raising interest rates. He believes the threat [of global financial calamity] has passed and that the bigger threat may well be inflation. That kind of tough talk sent the Aussie dollar right up to over 92 cents against the greenback. If it weren’t late fall, now might be the perfect time to take a trip to America and see how cheap things really are.
October 16th, 2009 | Dan Denning | 13 comments | Continued
Bubble Age Jobs Lost Because of Recession
Millions of people, for example, earned their money in ‘housing.’ They were putting up houses in the sand states…or building granite countertops…or selling, flipping, financing the houses.
October 7th, 2009 | Bill Bonner | 7 comments | Continued
Is Inflation Necessary for Recovery and Growth in the United States?
It was French economist Jacques Rueff who revealed the scam more than half a century ago. The whole idea of Keynesian stimulus, he explained, was to cause inflation…which would reduce the real price of labor. In a modern democracy, politics prevents wages from falling.
August 3rd, 2009 | Bill Bonner | 0 comments | Continued
The Bubble Deniers Deny that Their Own Stimulus Caused it
In the non-communist world, if a man had money and no bread, he exchanged the former for the latter…and sat down to dinner. As if guided by an ‘invisible hand,’ millions of people did the same thing. Everyone tried to get a bit more grease on his plate, by making his own decisions based on the facts before him.
July 20th, 2009 | Bill Bonner | 9 comments | Continued
Dividends and a Sea Change in Corporate Behaviour Toward Shareholders
Maybe we’re getting ahead of ourselves with the idea that Aussie companies will begin boosting dividends to attract shareholders. After all, Bloomberg reports that Aussie firms tapped the equity markets for over $90 billion in capital in the last fiscal year. It’s what you do when you’re rebuilding your balance sheet and paring back debt.
July 8th, 2009 | Dan Denning | 1 comment | Continued