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European Central Banks are trying to unload the PIIGS sovereign debt they picked up during the last bout of crisis: At the peak of the debt crisis in Europe, the European Central Bank committed a break with tradition that many at the time considered to be a cardinal sin. The bank began buying up massive […]
Heading into Portugal’s big bond auction last Wednesday, I wrote that things were looking ominous for the PIIGS, as the Euro had broken down, and yields were breaking out. (And I was honored to have Minyanville feature the piece, too!) Portugal’s bond auction went off smoothly, which set off the CNBC cheerleaders. But did anything […]
Our pal Brian Hunt points out today in his must-read Market Notes column that the euro has broken down through key support levels: (Source: DailyWealth) Brian writes: If a country runs its finances like a drug addict and racks up crazy debts, its currency depreciates over the long term. Most smart analysts put the status of […]
Bloomberg reports that Illinois lawmakers have merely days to cover their current $13 billion deficit: Illinois lawmakers will try this week to accomplish in a few days what they have been unable to do in the past two years — resolve the state’s worst financial crisis. The legislative session that began today as the House […]
Courtesy of John Hussman: The U.S. fiscal position is far worse than our present $1.3 trillion deficit and nearly 100% debt/GDP ratio would suggest. On the deficit side, there is certainly a “counter-cyclical” pattern to the U.S. federal deficit. As I noted a few weeks ago, every 1% shortfall of real GDP from potential (as […]
Over the weekend I caught a good interview that Jim Puplava conducted with economic commentator Gonzalo Lira about possible shakeout ramifications for the Euro as a result of the accelerating sovereign debt crisis in Europe. Lira laid out two potential scenarios: The PIIGS withdraw from the Eurozone, leaving the sounder core member (Germany, France, etc) […]
Municipal bonds continue to get taken to the cleaners – here’s an ugly chart for ya: Muni bonds fall off a cliff. (Source: StockCharts.com) Ever since the Muni Bond Put known at the Build America Bonds fund was given an expiration date, investors have shown little appetite for tax-free municipal debt. Mish Shedlock explored the […]
The sovereign debt debacle spotlight is back on Europe at the moment…but could it soon be heading to the land of the rising sun? Japan has quietly boasted astronomical borrowing needs as a percentage of GDP – so much so that the relative calm of Japanese interest rates has lulled many investors to sleep. Is […]
Check out the smack down investors laid on municipal bonds after Obama and Congress declined to extend the Build America Bonds program: Source: StockCharts.com The WSJ reports: If the BAB program is allowed to expire on Dec. 31, ending the sale of those federally subsidized, taxable securities, state and local governments would issue more tax-exempt […]
Dave Rosenberg touched on the subject of Europe today in his daily missive: Ireland, Greece and Portugal are basically insolvent and we will probably find out in due course that while these countries are too big to fail, and Spain is too big to rescue – this saga is far from over. I thought this would be […]
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