The Mess That Greenspan Made - Part 21

Friday Morning Links

MUST READS
Iraqi forces ready push, Obama offers advisers – Reuters
Why should we fight the break-up of Iraq? – The Atlantic
Energy Markets Are On The Brink Of Crisis – Alt-Market
What the Heck Just Happened to the Gold Price? – Barron’s
Have precious metals begun a new bull market? – Peter Brandt
Gold price breakout sparks massive move into mining stocks – Mining.com
Did The Fed Misdiagnose the Economic Expansion, And Kill It? – WSJ
Janet Yellen isn’t giving up on the long-term unemployed – Washington Post
International Monetary Fund Says Europe Should Weigh Bond-Buying – NY Times
After 6 Years of Central Planning, Economy Is More Fragile Than Ever – of two minds
The Fed’s Ever-Burgeoning Market Manipulation Support – Naked Capitalism
The typical household with student debt pays $160 per month -Vox
Massachusetts approves $11 minimum wage – CNN/Money

MARKETS/INVESTING
World markets struggle as Fed lift fades – AP
New highs don’t mean you have to sell – USA Today
Wells Fargo’s famous bear is turning a new leaf – CNBC
New Evidence Shows Insider Trading ‘Pervasive’, Rarely Punished – Fiscal Times
What Happens When the Fed Unwinds Their Balance Sheet? – Comstock Funds
Treasury Break-Even Rate Touches Three-Month High on Fed Outlook – Bloomberg
Gold drops, still set for biggest weekly rise in 3 months – Reuters
Gold price on insane surge after massive trade – Mining.com
Big Money Moving Into Mining Shares – SRSrocco Report
Chinese gold demand seen flat to lower this year – Reuters
Why the Big Rally in Precious Metals? – Jesses’s Cafe

ECONOMY/WORLD/HOUSING/BANKING
5 reasons the Fed isn’t troubled by inflation – MarketWatch
Is the recent US CPI increase just noise? – Sober Look
Merrill Lynch: Inflation: bump up or bust out? – Calculated Risk
England’s World Cup Decline Is Good for Economy – Bloomberg
Probe May Hit China’s Imports of Copper, Iron Ore – WSJ
China Property Failures Seen as $33 Billion in Trusts Due – Bloomberg
Homeowners face £1,000 rise in mortgage bill by next year – Telegraph
Sluggish Housing Market A Product Of Millions Of ‘Missing Households’ – NPR
Housing Falters as Forecasters See U.S. Sales Dropping – Bloomberg
Federal Reserve’s Bond-Buying Fades, but Stimulus Doesn’t End There – NY Times
The race to raise interest rates – Mainly Macro
Janet Yellen the Hawk – Fed Watch

 

The Fed Has Been Wrong Everytime

Here’s a rather harsh (and well deserved) assessment of Federal Reserve policy from Sri Kumar, president at Sri-Kumar Global Strategies, who points out the central bank’s abysmal track record on forecasting economic growth and how they have a fantastic track record for “taking the punch bowl away” far too slowly.

His closing comments are interesting. Particularly after the recent developments in Iraq, 2014 is suddenly starting to feel a lot like six or seven years ago when stocks had reached all-time highs and then oil prices started rising rapidly. We all know how that turned out.

Thursday Morning Links

MUST READS
5 Takeaways From the Fed Decision – WSJ
Are We About to See a Single-Digit VIX? – Barron’s
US central bank cuts growth forecast for 2014 – BBC
Here’s the proof that the Fed doesn’t care about faster growth – vox
Stocks Rise With Bonds as Emerging Market Currencies Climb – Bloomberg
Post-FOMC: What Strategists Read in Yellen’s Words – WSJ
Battle for Iraq refinery as U.S. hesitates to strike – Reuters
Ukrainian President Moves to Oust Central Bank Chief – Bloomberg
Ukraine forces battle separatists after truce ‘refused’ – Reuters
Crash the dollar system – Putin economic aide – Mineweb
Currency Probe Widens as U.S. Said to Target Markups – Bloomberg
Budget Busting Obesity Costs Climb Past $300 Billion a Year – Fiscal Times
Obesity Linked to Long-Term Unemployment in U.S. – Gallup

MARKETS/INVESTING
Asian markets up as Fed signals rates to stay low – AP
Investors Should Expect A Great Fourth Quarter – Forbes
Japan stocks climb to four-month high; Shanghai falls – MarketWatch
Countdown to Another Market Peak Has Begun – FSO
Are buybacks good for investors? – USA Today
VIX Is ‘Disconnected From Fundamentals’: JPMorgan – Barron’s
Fed Dots Ignored as Investors Focus on Yellen’s Message – Bloomberg
Gold edges up as dollar drops after Fed; platinum rises – Reuters
Spiking oil price bolsters calls to keep up gold curbs – Mineweb
Gold Solidly Higher on Safe-Haven Demand, Weaker Dollar – Kitco
Reform or die: gold price fix under pressure – Financial Times

ECONOMY/WORLD/HOUSING/BANKING
Yellen Shines a Light on Shadow Unemployment – Fiscal Times
Grant: Fed ‘Pouring Fire’ on ‘Glowing Embers of Inflation’ – MoneyNews
The New York Times gets real about economy – NY Post
Argentina says next bond payment ‘impossible’, default looms – Reuters
Russia to build gas pipeline to China in August – China Daily
Japan business mood defies economic headwinds, backs BOJ optimism – Reuters
PBOC Mulls New Tool for Regulating Money Supply, Guiding Rates – Caixin Online
How a Slumping Property Market Could Drag Down China’s GDP – WSJ
Natural disasters in the U.S. don’t dissuade home buyers – CNBC
Keynesian Fools! Fed’s GDP Hockey Stick Goes Limp – ContraCorner
What the Fed Did and Did Not Do – Marc to Market
Still a Dove – Fed Watch

 

It’s All About the Dots

The Fed will, at some point, rue the day they decided to make dot-plots showing the collective view of central bank members on where they think interest rates are headed.

Here’s an animated version of the recent progression from this CNN/Money story showing why interest rates rising sooner rather than later has become a concern for investors.

While the graphic will be updated at CNN/Money later today, that may not happen here.

© 2010-2011 The Mess That Greenspan Made