Posts Tagged 'Media'

Brief Insight

By: Daryl Montgomery

Quantitative easing will encourage large foreign holders to sell U.S. debt and to not make purchases in the future, except for TIPS (treasury inflation protected securities).  Even TIPS will ultimately be shunned because they reflect the understated official U.S. government inflation rate.

The price of gold is strongly linked to the loss of value in paper currencies. While many economists refuse to admit it, this is the definition of inflation. Gold has continually ...

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Is October’s Unemployment Rate Really 12.7%?

By: Daryl Montgomery

The BLS released its non-farm payroll figures for October today and they stated that 80,000 jobs were created and that the U.S. unemployment rate was 9.0%. There are reasons to believe that this number is actually as high as 12.7%.

Except for February and March of this year, the unemployment rate (the U-3 number) has been 9.0% or higher since May 2009. It hasn’t risen well into the double digits because large numbers of workers have supposedly left ...

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The Hasselblad 30 Year Gold Edition

The Hasselblad 30 Year Gold Edition

By: Tanya Palta

There are very few cameras in this world, that command reverence and admiration like a Hasselblad. The most desired camera by any self-respecting photographer. Owning a Hasselblad is not just an artistic coup, but is also the ultimate status symbol. Hence, it comes as no surprise that Hasselblad is universally recognized as being the Rolls Royce of cameras. The fact that the Hasselblad name is linked with cameras since almost the inception of photography ...

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EU Deal With Greece Falling Apart

By: Daryl Montgomery

The market lost its rose colored glasses today with Greece announcing a political referendum early in 2012 on the recent EU bailout deal. This could lead to the deal falling apart sooner rather than later.  Stocks sold off on the news in Europe and the U.S. while interest rates rose in Greece and other troubled EU countries.

The deal that the EU put together last week to handle its debt ridden members and to help ...

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October Consumer Confidence Well Into Recession Territory

October Consumer Confidence Well Into Recession Territory

By: Daryl Montgomery

The October Consumer Confidence number fell to 39.8. It is once again approaching the all-time lows that occurred at the bottom of the Great Recession. The number has never reached the 90 level since 2009, which is the cutoff for a healthy economy. The continually poor levels of consumer confidence  bring into question whether the last recession ever really ended.

While U.S. consumers are gloomy about almost all aspects of the economy, they are most pessimistic about employment prospects. ...

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Can the EU Solve Its Debt Crisis with More Debt?

Can the EU Solve Its Debt Crisis with More Debt?

By: Daryl Montgomery

European and U.S. stocks were rallying on Friday in what appears to be a liquidity frenzy supplied by the central banks. The market is once again hopeful now that EU leaders are beginning six days of meetings on how to save Greece and the euro. Based on their previous track record, which has led to the current crisis, there is little reason for long-term optimism.

Stock prices have not been the only thing rising lately.  Interest rates have ...

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Inflation Picking Up Globally Leading to Stagflation

Inflation Picking Up Globally Leading to Stagflation

By:Daryl Montgomery

Britain shocked the markets on October 18th when it reported an inflation rate of 5.2% for September. This was up from 4.5% the previous month and well above government projections. Inflation isn’t just rising there, but higher prices are a global phenomenon.

The world seems to be entering a new period of stagflation similar to the 1970s. Stagflation is high inflation and low GDP growth. This is very evident in the UK where GDP ...

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60% Cut for Greek Bondholders on the Table

60% Cut for Greek Bondholders on the Table

By: Daryl Montgomery

Bloomberg reported overnight that Greek bondholders were preparing to lose 60% on their investments. This is much bigger than the constructive default of 21% proposed with the second bailout in July. A big cut in the value of Greek bonds will cause major problems for German and French banks — and the ECB itself.

Rumors have been floating around the markets for days about a managed default of Greek debt at around the 50%, or ...

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Wishful Thinking on Economy and Europe Driving Markets

Wishful Thinking on Economy and Europe Driving Markets

By: Daryl Montgomery

U.S. stocks had a major rally on Columbus Day based on the French and German leaders’ mystery plan to recapitalize EU banks and on raised forecasts for U.S. economic growth in the second half of 2011. While both news items seemed to contain nothing but wishful thinking, that’s often enough for short-term traders.

The Dow Industrials closed up 3.0% and Nasdaq 3.5% on low trading volume. Big moves in the market are more likely when many traders are ...

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U.S. Employment Still at Recession Levels in September

U.S. Employment Still at Recession Levels in September

By: Daryl Montgomery

The non-farm payrolls report for September indicated the U.S. economy added 103,000 jobs last month. Mainstream media immediately jumped on the number as proof the U.S. is not in a recession. It indicates no such thing.

While it seems reasonable to assume that employment can’t increase at the begging of a recession, this did not happen in December 2007 when the Great Recession began. Total U.S. non-farm payroll employment actually peaked in January 2008 ...

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