Fraud is king? Italian police said last week they had seized about $6 trillion worth of fake U.S. Treasury bonds and other securities in Switzerland, and arrested eight Italians accused of international fraud and other financial crimes. The operation, co-ordinated by prosecutors from the southern Italian city of Potenza, was carried out by Italian, Swiss [...]
Who is right stocks or bonds? As you can see, the S&P and the 10-year yield moved closely together up until about last December, when the stock market started taking off, and the yield stayed low. It’s not some iron law that they have to move together, but it is weird that there’s a divergence, because [...]
British austerity working? British unemployment rose by 48,000 to 2.67 million in the three months to December. The unemployment rate rose from 8.3 percent to 8.4 percent, the highest level in 17 years, according to the Guardian. British unemployment is now worse than American (8.3 percent). The UK saw 6,900 new jobless claims, worse than market estimates [...]
What is the Real U.S. Concern with Iran – The Petrodollar or WMDs? The current United States and the European Union bombardment of the airwaves proclaiming that Iran must be punished for continuing its efforts to develop a nuclear weapon. The European Union, who did not support the U.S. invasion in Iraq, is vowing now [...]
The budget battle begins for 2013. Although President Obama’s $3.8 trillion budget was dead even before it was delivered Monday to Congress, it drew plenty of comment on Capitol Hill. Democrats praised it for outlining investments in education and transportation, and higher tax rates for the wealthiest of Americans, Republicans criticized the president for failing [...]
US exports – the engine of growth? A weaker dollar, a shift in policy, and a world hungry for natural resources has boosted US exports to 14% of GDP in 2011. It also helps that the US now has some of the cheapest electricity rates in the developed world, and even cheaper natural gas. Two [...]
More Greek riots – when will it end? Riots engulfed central Athens and at least 10 buildings went up in flames in mass protests late Sunday as lawmakers prepared for a historic parliamentary vote on harsh austerity measures demanded to keep the country solvent and within the eurozone. A three-story corner building was completely consumed by [...]
Home owners getting the shaft again? Federal and state officials announced a $25 billion settlement of a long-running probe into allegedly shoddy foreclosure practices at the nation’s five largest banks. It is the largest joint state-federal settlement in history, and involves banks that collectively service almost 60 percent of the nation’s mortgages. So is this [...]
Low IQ & Conservative Beliefs Linked to Prejudice? There’s no gentle way to put it: People who give in to racism and prejudice may simply be dumb, according to a new study that is bound to stir public controversy. The research finds that children with low intelligence are more likely to hold prejudiced attitudes as [...]
Bluepoint daily market view – February 22, 2012
All is well in Europe now? Euro zone finance ministers agreed a 130-billion-euro rescue for Greece on Tuesday to avert an imminent chaotic default after forcing Athens to commit to unpopular cuts and private bondholders to take bigger losses. The complex deal wrought in overnight negotiations buys time to stabilise the 17-nation currency bloc and [...]