FX Markets 2010 – The Old Maid, Global Imbalances and Carry Trade

This piece was written before Christmas and will appear in the first 2010 edition of the Forex Journal. The data covers the market up until mid December.

Old Maid is a card game where the simple task is to avoid holding a given card (often the queen of spades) at the end. . . . → Read More: FX Markets 2010 – The Old Maid, Global Imbalances and Carry Trade

Shutters Are Closed Up and Down Main Street but Wall Street is in the Money

Shutters are closed up and down Main Street but Wall Street is in the money. How could that be? The bull market in stocks has gone farther for longer than I thought possible.

Just surveying the salient points of the economic situation in 2009 led me to a more bearish view. The anti-business party . . . → Read More: Shutters Are Closed Up and Down Main Street but Wall Street is in the Money

U.S. Telecom Providers to Purchase and Innovate More in 2010

U.S. telecom and cable operators are likely to increase their capital expenditures this year according to estimates from Avian Securities.

In a research report released last week the firm estimates that telecom service providers will increase their spending by 1.5% to $57.7 billion.

Avian estimates that the largest spenders will be AT&T Inc. (NYSE: . . . → Read More: U.S. Telecom Providers to Purchase and Innovate More in 2010

The Political Economy of Europe and the U.S.

In yesterday’s edition of NY Times, Paul Krugman opened a puzzling discussion on the economic performance of Europe relative to the United States (link), suggesting that the European model of social democracy is an envy for economic success compared to the U.S economy.

Retirement Accounts Could Boost Treasuries

The Federal Government is running massive budget deficits which is creating a massive supply of Treasuries.  But there is no demand and so the Federal Reserve is monetizing the debt.  But these colored coupons merely amount to certificates of confiscation.  Where will Congress find the capital to buy Treasuries?  Most likely, your retirement account and . . . → Read More: Retirement Accounts Could Boost Treasuries