Stocks and Dollars

The co-ordinated liquidity push by the large central banks worldwide yesterday has brought some stability into the market. While this is not the answer and solution to the problems in Europe, it does provide much needed relief in the near term.

Risk appetite soared today as key central banks acted to provide liquidity by lowering interest rates on dollar swaps. The Fed, ECB, SNB, BoE, BoC, and BoJ announced they will lower the swap rates by 50 bps starting December 5 and extending swap lines to February 2013. The action was

Risk appetite soared today as key central banks acted to provide liquidity by lowering interest rates on dollar swaps. The Fed, ECB, SNB, BoE, BoC, and BoJ announced they will lower the swap rates by 50 bps starting December 5 and extending swap lines to February 2013. The action was

The Fed’s Summary of Commentary on Current Economic Conditions, otherwise known as the Beige Book, compiled in preparation for the December 13 Federal Open Market Committee (FOMC) meeting, characterized economic activity as having increased “at a slow to moderate pace” since the last report, although one of the 12 Fed

The Fed’s Summary of Commentary on Current Economic Conditions, otherwise known as the Beige Book, compiled in preparation for the December 13 Federal Open Market Committee (FOMC) meeting, characterized economic activity as having increased “at a slow to moderate pace” since the last report, although one of the 12 Fed

Economic activity expanded at a “slow to moderate” pace in 11 of the 12 Federal Reserve Districts during the second half of October and first half of November. St. Louis was the only District to report weaker economic activity.

The details of the report revealed ongoing improvements in consumer spending. Auto

By Jason Schwarz:

<< Return to Part I

From a big-picture perspective, Europe has become a region without a defined political or economic identity. For more than 60 years in Western Europe and 20 years in Eastern Europe, elected leaders have been given the charge to govern their respective nations in a form of democracy built upon a foundation of socialized programs.

The status quo is quickly morphing into something entirely new and unexpected. I call it the rise of the financial markets. Financial markets have more clout than voters and more power than prime ministers. And to think…all those science fiction movies spent their time fretting over apes, aliens and machines. Turns out that financial markets end up ruling us all.

Greece and Italy have already been forced to remove their elected leaders and have appointed unelected technocrats to clean up the debt mess. The new leaders are tough, smart, economically literate

Complete Story »

By Jason Schwarz:

<< Return to Part I

From a big-picture perspective, Europe has become a region without a defined political or economic identity. For more than 60 years in Western Europe and 20 years in Eastern Europe, elected leaders have been given the charge to govern their respective nations in a form of democracy built upon a foundation of socialized programs.

The status quo is quickly morphing into something entirely new and unexpected. I call it the rise of the financial markets. Financial markets have more clout than voters and more power than prime ministers. And to think…all those science fiction movies spent their time fretting over apes, aliens and machines. Turns out that financial markets end up ruling us all.

Greece and Italy have already been forced to remove their elected leaders and have appointed unelected technocrats to clean up the debt mess. The new leaders are tough, smart, economically literate

Complete Story »