Saturday, February 6, 2010
Time will tell whether the strategy proves successful.
The stance by Wells, the country’s fourth largest bank, marks a sharp contrast to the three bigger ones.
While Wells cut its bond portfolio by $34 billion in the second half of last year, JPMorgan Chase, Bank of America and Citigroup increased their holdings by an average of $35.5 billion, Bloomberg reports. (more)
The unemployment picture painted by today’s jobs report headlines is much rosier than reality. Yet, the Dow broke below 10,000 for the first time in months. The real unemployment number reported by the Bureau of Labor Statistics (BLS) is much higher and scarier than they want you to believe. What's next?
How do fish get caught? They open their mouth. How do investors get ensnared or misled? They believe in non-existent phenomenons like a “jobless recovery.”
Surprising as it is, for nearly a year, investors have shrugged off mounting jobless claims and rising unemployment as an ingredient that is not really required for an economic recovery.
Yesterday’s (2-4-10) announcement by the Department of Labor that claims for unemployment benefits rose by 8,000 to 480,000 sent stocks spiraling. (more)
Representatives from 24 central banks and monetary authorities including the US Federal Reserve and European Central Bank landed in Sydney to meet tomorrow at a secret location, the Herald Sun reports.
Organised by the Bank for International Settlements last year, the two-day talks are shrouded in secrecy with high-level security believed to have been invoked by law enforcement agencies. (more)
A great - and still growing - divergence appeared in 2009 between public statements by leaders and their public performance. The politicized, romanticized theater of increasingly populist “democratic” leaders and media seemed to be of a different planet from activities taking place in the real world.
While a large part of the global population appears still transfixed by words, there is a growing perception that great fissures already rend the global strategic architecture.
This is a trend which will compound during 2010.There is a widespread belief that the world has “ducked the strategic bullet” of global economic collapse, but this is merely the delusionary euphoria of the severely wounded patient. Severe structural damage has occurred to the key driver of global economic stability, the United States. Most major economies of Western Europe and Asia, although in plight, have been protected in their fall by a complex web of structures and the fact that they were not, in many respects, as leveraged as the US. Britain and Japan, however, remain leveraged in their debt-to-asset ratio, to a death-defying degree. (more)
The Devaluation and Fight for Survival of the American Middle Class – How Three Decades has Shifted the Concentration of Financial Wealth to the top 1
The Dow rose 10.05 points to 10,012.23 at 4 p.m. in New York, and the Standard & Poor’s 500 Index rallied 0.3 percent after plunging 1.8 percent in what would have been the biggest two-day slump since March. The MSCI World Index cut its drop in half to 1 percent because of the recovery in U.S. stocks. Oil pared its loss to 1.8 percent and gold and copper climbed at least 0.3 percent in electronic trading after the close of commodities exchanges. The U.S. Dollar Index gained 0.5 percent.
Stocks and commodities had plunged around the world earlier on growing concern European nations will default on their debt. The recovery by U.S. equities showed confidence among investors that a solution will be reached in Europe. The retreat in American shares had been limited after the nation’s jobless rate unexpectedly fell to a five-month low of 9.7 percent. (more)