“Oh, Poor Me!” The Stock Holder’s Lament - January 18, 2008 21:06

JUST IN CASE YOU’D forgotten – or you’ve set up a hedge fund in London lately – shareholders come last in line when a listed company goes bust.Yes, yes…you get to vote on who sits on the board of directors. You might even get first dibs on any new share issues set to dilute your […]

Weak US dollar impacts global perspective - January 18, 2008 10:11

The US dollar has remained somewhat range bound against the Euro and Pound as of late.  It currently (January 17) takes $1.4628 to by one Euro, still holding a couple pips under recent record highs.  The dollar remains relatively strong against the Pound with $1.97 fetching one Pound.  The dollar is currently ten pips stronger […]

Recovery in the Commercial Paper Markets? - January 17, 2008 9:40

Over the past few years I have been watching Commercial Paper (CP) with interest. It’s the lifeblood of the credit markets and responsible for the ability to create the financial innovations in derivatives.The issue of various types of CP, i.e short term lending, allowed the channelling of funds into SIVs  and Conduits to purchase longer […]

Gold flies high above $900 - January 16, 2008 11:54

Gold prices soared this week to new record highs against the dollar at an amazing $914 before falling back to current levels just above $900.  The strong surge in the last week left the previous record against the dollar in its wake.  The new mark established a new high since gold first floated against the […]

Decoupling? - January 15, 2008 9:48

The buzz words keep changing, from  2005 to mid 2007, the word was Goldilocks, or how everything in the financial world was perfect and even if the economy slowed, the landing would be gentle. So gentle that the feather filled pillows of interest rate cuts would be hardly used to cushion the slight brush with […]

Mortgage refinancing a viable option for many US home owners - January 11, 2008 9:42

With Bankrate.com showing average 30-year fixed mortgage rates at 5.53% in their weekly survey for today (January 10), there has never been a better time for many Americans to refinance their mortgages.  Even home owners that have purchased at the high end of rates in the last few years with rates steadily hovering between 5.75-6.5% […]

FTSE 100 – Bull or Bear? - January 9, 2008 20:40

A question that vexes nearly all traders is what defines a bull or bear market? You can choose from a myriad of methods and analysis, both technical and fundamental. There are the old favourites, P/E ratios vs Bonds, Elliott Wave theory, Dow Theory, Cycles, Trends,  50 and 200 daily moving average crosses, the list grows […]

A gloomy day for the housing and mortgage outlook - January 9, 2008 10:13

Tuesday started promising on Wall Street, as the National Association of Realtors (NAR) announced a potential for an upswing in the US housing market, possibly in late 2008.  They expressed the possibility of market stabilization.  However, they also said pending home sales dropped 2.6% in November.

Jawboning - January 8, 2008 14:02

During the mid- to late 1960s, the Lyndon B Johnson Administration tried to deal with the mounting inflationary pressures by direct government influence. Wage-price guideposts were set up, and the power of the presidency was used to coerce big businesses and labor into going along with these guideposts.