Even gold – which set a record high USD terms overnight – will not be immune. In fact, any time you see something making record highs, a correction is not far away. With gold, investment demand (as a hedge against bad monetary policy) is pushing the price up.
June 9th, 2010 | Dan Denning | 90 comments | ContinuedAll Posts Tagged With: "Standard and Poor’s"
Defiance at the Fed
Any real recovery would be accompanied by interest rate increases from the Federal Reserve. Instead, the Fed stuck to its guns and butter interest rate. Dan Denning is another step closer to his free beer bet coming off.
March 20th, 2010 | Nickolai Hubble | 0 comments | Continued
U.S. Home Sales Up Because of Congress Tax Credit
In November, first home buyers taking advantage of the tax credit made up 50% of demand for existing homes. In December, it fell to 43%. Those two months were supposed to be the final months of the credit. The December decline shows that most people who intended to take advantage of the credit had already locked it in.
January 27th, 2010 | Dan Denning | 0 comments | Continued
Ratings Agencies Put Spain on Negative Debt Watch
Spain’s debt has grown from 36% to 66% of GDP in the last two years. This is thanks to a budget deficit of 11.2 per cent this year, and will still be around 10.2 per cent for next year.
Not only that, but the unemployment level in Spain is heading for twenty per cent in 2010. Already a staggering 43 per cent of people under the age of twenty five are out of work.
December 10th, 2009 | Dr. Alex Cowie | 4 comments | Continued
Commercial Mortgage Backed Securities Are Back
Today’ Age reports that the Trust will try to raise $280 million from the issue. Some of that will be used to pay off nearly $450 million in securities that mature in December. Hmm. Selling more debt to pay off old debt. There’s never a bad time for that if you don’t have cash.
August 27th, 2009 | Dan Denning | 6 comments | Continued
Paying Attention to the Risk from Deleveraging in Commercial Real Estate
Standard & Poor’s is preparing to downgrade some $235.2 billion of commercial mortgage-backed securities (CMBS), according to our friend Dan Ferris. When these downgrades occur, the banks and insurance companies that own this paper are going to have a big problem,” Dan says. “Prices are already down around 25% in the past year.”
June 30th, 2009 | Dan Denning | 13 comments | Continued
Fed Willing to Print Money to Buy More Bonds to Keep U.S. Interest Low
Meanwhile all sorts of mischief is afoot in financial markets and the Australian energy market. U.S. stocks fell over 1.5% in Thursday trading. The minutes of the Federal Reserve’s April meeting were published. The notes said there were “significant downside risks” to the U.S. economy and that the global financial system remains “vulnerable to further shocks.”
May 22nd, 2009 | Dan Denning | 0 comments | Continued
