The Mess That Greenspan Made - Part 32

Thursday Morning Links

Dow, S&P 500 set new records – USA Today
ECB maintains policy despite waning economy – AP
Riksbank presents ’shock’ interest rate drop – The Local
U.S. jobs data seen reinforcing strong growth outlook – Reuters
Hedge Fund Finds Asset-Backed Bargains in Subprime Debris – Bloomberg
Janet Yellen Signals She Won’t Raise Rates to Fight Bubbles – NY Times
Yellen: Don’t blame the financial crisis on low rates – Fortune
Yellen Says Financial Instability Shouldn’t Prompt Rate Change – Bloomberg
Berlin talks bring Russia and Ukraine closer to resuming ceasefire – Reuters
Saudi Arabia Sends 30,000 Troops to Iraq Border: State-Owned TV – NBC News
Water Fetches Record Prices in Drought-Hit California – Time
China in the Golden Age of Central Bankers – Salient Partners
Similarities Between 1914 And 2014 – GoldSilverWorlds

World stocks rise ahead of US jobs report – AP
GoPro’s Rocket Ride a Sign of a Top? – Fox Business
Many women think stock market is too risky – USA Today
It’s Almost Dow 17000—and Time for Some Lessons From 2008 – WSJ
Treasury Decline Boosts Yield to 15-Year High Versus Germany’s – Bloomberg
Gold slips ahead of U.S. jobs data, ECB Policy Announcement – Reuters
Gold industry bust at $1 300/oz, says Randgold’s Bristow – Mining weekly
Chinese Trader Said to Pledge Metal 3 Times for Loans – Bloomberg
Indian Central Bank plans to swap Gold to improve reserves quality – Bullionstreet
Assets in top exchange-traded gold product up most since 2011 –
The coming two-stage rally in silver – SRSrocco Report
FCA: ‘No evidence’ of gold price rigging – Telegraph

32 states trail US as a whole in job recovery – AP
The economy — surprise — didn’t tank in first half – MarketWatch
Services sector keeps UK economy ‘firing on all cylinders’ – Telegraph
Sir Jon Cunliffe: House prices ‘biggest risk’ to UK economy – BBC
German private sector expands at slowest pace in eight months – Reuters
How Bad Would a Housing Market Crash Be for China? – Businessweek
Mixed Results: U.S. Housing Market Resembled the 2014 World Cup in June – CBS
Not Every Part of the Housing Market Is Improving – Wall Street Cheat Sheet
Obama: more reforms needed to wring risk from banks – report – Reuters
Obama Decries Big Bonuses at Bank Trading Desks as Risky – Bloomberg
Yellen Looks the Other Way – Alhambra Partners


Now that the U.S. team has been eliminated from the World Cup, we ‘Mericans can focus on what we really do best – inflating asset bubbles – and that effort should be bolstered by what is shaping up to be a big number in the nonfarm payrolls data due out from the Labor Department on Thursday, just prior to the nation celebrating its 238th birthday on Friday.

From these two reports at Gallup come the charts below indicating all systems are go.

Of course, it doesn’t hurt that payroll processor ADP reported earlier today that the private sector added 281,000 jobs last month, the biggest job creation total since November 2012.

This should be much more fun than watching soccer…

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Wednesday Morning Links

Are stocks on fire or just overheating? – CNBC
Dow, S&P 500 at record highs on manufacturing data – xinhuanet
Hong Kong Stocks Close at Year’s High on Factory Data – Businesweek
Global investors pare risky bond bets, brace for sell-off – Reuters
Five Questions Ahead of the ECB’s July Meeting – WSJ
World’s ATM Moves to Frankfurt as Fed Slows Cash – Bloomberg
Rate Hikes: What Can History Tell Us that the Fed Won’t? – Cyniconomics
Iraq may become ‘new Ukraine’ due to US interference – Voice of Russia
Iraq conflict put oil companies on ‘knife’s edge’ – Financial Post
China’s Hurdle to Fast Action on Climate Change – NY Times
Australia emerging as new casino hotspot – Channel News Asia
10 things rich people know that you don’t – MarketWatch
Christmas in July: TV week of holiday programming – AP

Global stocks higher on US, China growth – AP
Another financial meltdown on the horizon? – The Hill
Market’s correction-free run tops 1,000 days – USA Today
Gas prices too high? They could be much worse – CNBC
Treasuries Drop as U.S. Companies Top Jobs Forecast – Bloomberg
Gold near 3-month high on fund inflows ahead of U.S. data – Reuters
Will gold be an effective hedge in the next  financial crisis? – arabian money
Gold bullion imports in India hit 13-month high – Resource Investor
Indian gold import duty could be cut but perhaps only to 8% – Mineweb
Gold appetite at 4½-year low in June – CNBC
The Golden Tail? – Barron’s

July 4th gas prices highest since 2008 thanks to Iraq – MarketWatch
We must end this addiction to debt as the engine of growth – Telegraph
Debt Makes You Dumb, Part 2: Borrowing Just To Get By – Dollar Collapse
Britain’s manufacturing activities grow at seven-month high – xinhuanet
Sarkozy Charged With Influence Peddling After Questioning – Bloomberg
Real estate prices decline for a second consecutive month – China Daily
London House Prices Surge the Most Since 1987 – Bloomberg
The Slow Down in the House Price Indexes – Calculated Risk
The Re-Explosion of U.S. House Prices Is Over – Businessweek
Yellen and Lagarde take stock of lessons from crises past – WSJ
The financial instability argument for raising rates – mainly macro
Stability or Sadomonetarism? – Krugman, NY Times


The Institute for Supply Management reported that the U.S. manufacturing sector continued to expand at a healthy pace last month as their purchasing managers index was little changed, down slightly from 55.4 in May to 55.3 in June. Recall that, in this index, readings above and below 50 indicate expansion and contraction, respectively.

The key new orders component improved from 56.9 in May to 58.9 in June, production fell from 61.0 to 60.0 (still indicating robust growth), and employment was unchanged at 52.8. A full 15 of the 18 industries tracked by ISM reported growth last month.

Pricing pressure eased somewhat as this component fell from 60.0 to 58.0, backlog orders fell from 52.5 to 48.0 (indicating contraction), and inventories were unchanged at 53.0.

Obviously, the stock market likes this news quite a bit.

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