“We will continue with Fed purchases until unemployment falls below 6.5%” Ben Bernanke
Non Farm Payroll data is positive. No doubt. Payrolls has been remarkably stable, but this represents an acceleration. All the 3 month, 6 month, 12 month averages are now at around 200k post revisions… But it is also within a broader, weak context. Unemployment is still 7.6%. Continue reading Stimulus is not working: The truth about US jobs
“The rules enshrined in countless pages behind the Basel Capital Accords did not prevent the crisis… In effect, faith in markets has given way to faith in regulation” – David T Llewellyn
“We will be the healthiest of the cemetery”. These are the words of a banker after hearing the results of the European agreement last week. Continue reading Euro Banks and the Dangers of Over-Regulation
The play year-to-date has been that historical QE would push yields lower, as they have in the US QE process, but there appears to be sharp rotation away from JGB’s in recent days. Continue reading Japan and Manga Money
“Artificially pushing interest rates down and forcing investors into junk bonds has only one end. It’s just a case of when, not if “(Sohn Investment Conference).
The slump of bond yields seen recently is not the result of the successful policies of our governments. We have seen most growth estimates revised down in recent months. We are seeing a “bond fever” worldwide. Continue reading The Big Bond Bubble