Archive for March, 2012

Quantitative Easing — To Be Or Not To Be

Saturday, March 31st, 2012

This last week we saw the coming and going of Quantitative Easing 3. The age old Hamlet soliloquy, circa 2012, “To be or not to be — that is the question,” became the daily mantra. Shakespeare would have been pleased to watch the play unfold. (more…)

Collateral Damage — Welcome To Trading 2012

Thursday, March 22nd, 2012

In the film, Collateral Damage, a bomb is detonated killing 9 people in the Colombian Consulate building plaza in Los Angeles. Among those killed are the wife and son of LAFD firefighter, Gordon Brewer (Arnold Schwarzenegger). They just happen to be in the wrong place at the wrong time. They were collateral damage, incidental to the intended target during the attack. Today, trading has become a similar war zone, with retail buyers and sellers being offered up as sacrificial collateral. (more…)

Crude Oil Prices Are Rising — Want To Play Chicken?

Saturday, March 17th, 2012

Republican presidential candidate Mitt Romney blamed President Obama for high gas prices, saying that “he has not pursued policies that convince the world that America is going to become energy secure, energy independent.” Romney claimed that Obama refuses to build the Keystone XL pipeline from Canada to Texas as evidence that the president is sending a message to the world that: “America’s not going to have the energy we need.” (more…)

The Emperor Really Doesn’t Have New Clothes

Saturday, March 10th, 2012

On Thursday, March 8, during his live press conference, European Central Bank (ECB) President Mario Draghi told the news correspondents in the audience that the ECB is transparent. Transparency to the ECB means providing the general public, news correspondents, and the Markets with “information on its strategy, assessments and policy decisions as well as its procedures in an open, clear and timely manner”. However, when the correspondent from the Wall Street Journal asked him how Greece was going to repay its loans, now that there was increased austerity and higher gasoline prices, Draghi refused to answer the question and instead took issue with the journalist’s recent article on the ECB’s balance sheet. So the Emperor really doesn’t have new clothes. (more…)

It’s Not What You Say — It’s What You Don’t Say!

Saturday, March 3rd, 2012

Last Wednesday, 29 February, 2012, Fed Reserve Chief Ben Bernanke delivered his semi-annual monetary policy report before the House Financial Services Committee in Washington DC. Just prior to delivering his report, he released a prepared statement concerning U.S. monetary policy and its effects on the overall economy. During his testimony and accompanying question/answer period, the Market tanked. It wasn’t what he said in his prepared testimony….it was what he didn’t say. (more…)