We did not mean that you should short bonds. Rather there is still time to make money on the long side. At least until the Fed stops supporting the market.
Rather, we meant that it's time to issue bonds. Those of you who have not done so, should consider issuing long dated debt securities.
Interest rates are headed up, and this is the time to take advantage of the opportunity.
* * * * * J B K * * * * *
San Francisco
As consumption increases this year, we could easily see GDP go higher.
Inflation is still low - so far. The Big Ugly is still coming though.
Read the whole report. It'll cheer you up.
Stay long the stock market. Get rich.
* * * * * J B K * * * * *
San Francisco
Feb. 26 (Bloomberg) -- The U.S. economy expanded at a 5.9 percent annual rate in the fourth quarter, more than the government reported last month, reflecting stronger business investment and a greater contribution from inventories.
The rise in gross domestic product, which exceeded the median forecast of economists surveyed by Bloomberg News, marked the best performance in more than six years, the Commerce Department said today in Washington. Inventories added 3.88 percentage points to GDP, more than previously reported, and investment in software and equipment grew at the fastest pace in almost a decade.
http://www.bloomberg.com/apps/news?pid=20601068&sid=al3FNswDlTkw
The problem with the Fed not regulating banks, is the difficulties of the Fed seeing the complete picture and acting quickly.
There is a real danger here Congress will blunder and foil any chance the Fed has of managing the money supply.
Oh, and Dodd? He's one of the ones who caused the Fed to blunder so badly.
* * * * * J B K * * * * *
San Francisco
Bernanke, 56, has said moving the powers to another agency would make it tougher for the central bank to act as the lender of last resort and conduct interest-rate policy. Dodd, a Connecticut Democrat, has said the Fed did an "abysmal" job supervising banks before the financial crisis.
http://www.bloomberg.com/apps/news?pid=20601087&sid=ayBArJ_YleFM&pos=5
There must be a flood of money coming into the US stock market.
* * * * * J B K * * * * *
San Francisco
Some heavyweight hedge funds have launched large bearish bets against the euro in moves that are reminiscent of the trading action at the height of the U.S. financial crisis.
The big bets are emerging amid gatherings such as an exclusive "idea dinner" earlier this month that included hedge-fund titans SAC Capital Advisors LP and Soros Fund Management LLC. During the dinner, hosted by a boutique investment bank at a private townhouse in Manhattan, a small group of all-star hedge-fund managers argued that the euro is likely to fall to "parity"—or equal on an exchange basis—with the dollar, people close to ...
Greece plans to issue a 10-year bond next week, after the government announces a new austerity package that will reduce spending between €2 billion and €2.5 billion ($2.7 billion to $3.4 billion), people familiar with the situation said. The government hopes to raise €3 billion to €5 billion from the offering.
This'll be fun.
I've got a bet that the new securities yield 100 basis points more by this time next week.
* * * * * J B K * * * * *
San Francisco
http://www.bloomberg.com/apps/news?pid=20601087&sid=a.DJ3JHmieCU&pos=3
Not much to see here. Standard part of the business cycle.
* * * * * J B K * * * * *
San Francisco
Compare US monetary reporting to any other country and you'll see why the US is the favored place to invest the majority of your assets.
We all dabble in emerging markets, but our money lives in the US.
* * * * * J B K * * * * *
San Francisco
"On matters related to the conduct of monetary policy, the Federal Reserve is already one of the most transparent central banks in the world," Bernanke said in prepared remarks to the House Financial Services Committee. He plans to appear tomorrow before the Senate Banking Committee.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a4Vhl8tdMr70&pos=2