HBOS speaks with forked tongue - April 28, 2008 23:59

A month ago HBOS was screaming about unfounded rumours as to the state of its capital. It went crying to the FSA as its share price collapsed from just over 700p to just under 400p asking that the “rogue shorter” be hunted down and hung by the neck until severely punished. Talk circulated that it […]

China, Gold and The Coming Flood of Wealth - April 28, 2008 23:57

The Chinese government has set its sites on an average of 10% growth per annum and is achieving that because it has the power to ensure that this happens. The full, synthesized Chinese economy is under the firm control of the government.

More positive tech earnings drive equities - April 25, 2008 9:55

Several more US tech stocks helped strengthen US equities during Wednesday and Thursday (April 24) trade. Following in the footsteps of impressive earnings from companies like IBM, AT&T, and Yahoo, Apple and Microsoft helped lead another new earnings push in the technology sector.

Starve the rich to feed the poor, how Japan may cause the failure of current Federal Reserve policy - April 24, 2008 10:59

Having written 2 in-depth articles about the rationale behind the Federal Reserve and US Govt plans to bail out the financial system some readers of the last couple of Occasional Letters may well have wondered if I was about to change my outlook. This article should put paid to any such thoughts.

Tech stocks buoy US equities - April 23, 2008 12:48

Many people have been amazed at the resilience of US equities markets over the last several months, especially considering the ongoing bad news in credit and real estate. Even with recession talks and consistently bad earnings for the fourth quarter and early into 2008, the Dow remains about 1,000 points above its low late last […]

The Long Wait – Bank of America - April 22, 2008 13:24

Well they didn’t disappoint, Bank of America joins the bailout/writeoff club big league, they even went one better and managed to miss already easy street estimates. BofA posted Q1 earnings of $1,21Bn or 23 cents a share, the estimates were looking for 43 cents. Thats not just missing the barn door, thats being at the […]

The Weekly Report - April 20, 2008 20:46

Welcome to the Weekly Report. This week I have to highlight conditions in the bond markets as a priority, we maybe about to endure a bust of quite large proportions. I will also look at some longer term stock market indicators, confirmation that the Bank of England will follow the US and show why the […]

The Cost of Banking - April 18, 2008 19:18

It is becoming more apparent that the cost of banking is weighing heavily on the financial sector. The continuing list of firms requiring capital injections rises by the week. Whilst some would have you view this as banks “strengthening” their capital base, I would view it as bailouts, begging – pure and simple. These bailouts […]

Falling dollar helps some blue-chip stocks? - April 18, 2008 9:14

The news about consumer prices continues to get worse for Americans.  Record wholesale and consumer prices were reported again earlier this week.  Gasoline surpassed a national retail price average of $3.40 per gallon today (April 17), and more price rises are expected.  Milk, cheese, eggs, and other basic grocery items continue to sell for high […]