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Posted

Early openers have a spring in their step: Kiwis +0.9%, Aussies +0.7%, Nikkers +1.2% and Sth Korea +1.2%.

 

In Aussie sectors, Energy +1.6% and Miners/Materials +1% with Gold taking a rest, -0.3%.

 

 

 

t?s=%5ENZ50

 

 

t?s=%5EAORD

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Posted

Latest Story





The Deeper Meaning of the Facebook Flop





May 21, 2012
By Lee Adler




rfwslogosmall.png?affiliate=selfAaron Krowne joins Lee Adler to talk about the Fecebook flop, the idea that the Fed conducted a stealth QE (it didn’t), and a few observations from the NY hard money conference.

This is a subscriber only podcast.

If you are not a subscriber, click here to access the most recent free podcast posted on Monday, April 23.

Posted

w?s=%5EAORD

 

 

All Ords did a reasonably strong bounce today, closing +1.2%. Energy +1.8% was the leading sector followed by Telecomms +1.5% and Materials +1.2%. IT -0.2% was the only down sector and Gold finished relatively flat, +0.1%.

 

Similarly green in Asia: China +0.8%, Honkers +1.2%, India +0.7% and Nikkers +1.1%.

 

 

On to UK/Europe

 

 

 

image;size=239x110

 

 

 

image;size=239x110

 

 

 

image;size=239x110

Posted

Fineary, I got it wolking!

 

 

<p><strong> Latest Story</strong><br />

<span style="color: #444444"><br />

<br />

<strong> <a href="http://radiofreewallstreet.fm/2012/05/21/the-deeper-meaning-of-the-facebook-flop/" class='bbc_url' title='External link' rel='nofollow external'>The Deeper Meaning of the Facebook Flop</a></strong><br />

<span style="font-family: Verdana, Arial, Helvetica, sans-serif"><span style='font-size: 10px;'><br />

<span style="color: #888888"><em><br />

May 21, 2012</em></span>By <a href="http://radiofreewallstreet.fm/author/dler/" class='bbc_url' title='External link' rel='nofollow external'>Lee Adler</a></span></span><br />

<br />

<span rel='lightbox'>rfwslogosmall.png?affiliate=self</span>Aaron Krowne joins Lee Adler to talk about the Fecebook flop, the idea that the Fed conducted a stealth QE (it didn’t), and a few observations from the NY hard money conference.<br />

This is a subscriber only <a href="http://wallstreetexaminer.com/paid/rf052112.mp3" class='bbc_url' title='External link' rel='nofollow external'>podcast</a>.<br />

If you are not a subscriber, <a href="http://radiofreewallstreet.fm/?p=1785" class='bbc_url' title='External link' rel='nofollow external'>click here to access the most recent free podcast</a> posted on Monday, April 23.</span></p>

 

Riiight.. :rolleyes:

 

I'm finding pasting is really tricky.... :wacko:

Posted

Shouldn't a "risk-free" rate in practice at least not be negative?

 

My point is, where governments intervene on behalf of policy goals in a manner that wildly distorts the yield curve, the resulting rates are no longer market rates. Even if one isn't an efficient market acolyte, the distortion impounds the rate with a "policy risk" that negates their function as a "risk free" rate.

 

Put differently, one should not expect a market-based risk free rate to swing wildly or abruptly - it can wander, of course, but it shouldn't exhibit excessive volatility.

 

Anyway, the relationship between finance theory and finance reality is always disputed: making recourse to "risk free rate" after 2008, especially in reference to soverign debt/US Treasurys, fails to recognize just how different our world is now.

Shouldn't a "risk-free" rate in practice at least not be negative?

 

My point is, where governments intervene on behalf of policy goals in a manner that wildly distorts the yield curve, the resulting rates are no longer market rates. Even if one isn't an efficient market acolyte, the distortion impounds the rate with a "policy risk" that negates their function as a "risk free" rate.

 

Put differently, one should not expect a market-based risk free rate to swing wildly or abruptly - it can wander, of course, but it shouldn't exhibit excessive volatility.

 

Anyway, the relationship between finance theory and finance reality is always disputed: making recourse to "risk free rate" after 2008, especially in reference to soverign debt/US Treasurys, fails to recognize just how different our world is now.

 

We've had negative NOMINAL rates in some cases the last few years... if inflation calculations weren't so subdued (not to say outright manipulated) I think you'd have a hard time finding lots of periods with positive risk free real rates.

And why not? If you just want to lay back sitting on your dough eating interest and don't want any risk, you should pay a premium for keeping your money, that's what happens.

Posted

Stinky position still open

 

http://www.bloomberg...-may-widen.html

 

"“They’re not out of those positions,” Michael Platt, co- founder and chief executive officer of BlueCrest Capital Management LLP, said today in an interview on Bloomberg Television’s “Inside Track.” “If we end up with a catastrophe in Europe in the short run, they’re probably not positions that anyone would want to have.”"

 

"Platt said he doubted Dimon’s explanation that the trades had spawned from hedges intended to protect the value of credit assets such as corporate loans."

 

"“I don’t think they could be described in any way as a hedge,” he said. “I think it’s a trading loss. They deliberately put the positions on. The London whale, who has subsequently been harpooned, put the positions on.”"

Posted

The Impossible Mission Force says UK needs to print more!

 

"The Bank of England needs to inject more stimulus into the U.K. economy through more bond purchases or by cutting interest rates as “large” risks from the euro-area crisis may derail growth and inflationary pressures remain weak, the IMF said."

"“Evidence suggests that quantitative easing can continue to support demand by lowering long-term interest rates and improving banks’ liquidity” the report said. “The Monetary Policy Committee should also reassess the efficacy of cutting the policy rate below its current level of 0.5 percent.”"

 

http://www.bloomberg.com/news/2012-05-22/imf-says-u-k-needs-more-monetary-stimulus-possible-tax-cuts.html

Posted

While the West dwindles in money printing, China's doing what Keynesian economics is really about: paying the work force to open up holes and cover them up afterwards.

 

"China will fast track approvals for infrastructure investment to combat a slowdown in the economy, a state-backed newspaper reported on Tuesday, showing how Premier Wen Jiabao's call for policies to support growth is being put into action."

 

http://www.reuters.com/article/2012/05/22/us-china-economy-idUSBRE84L05320120522

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