Businesses and governments have rushed to raise tens of billions of dollars from bond markets in a frenetic round of new year fundraising amid fears that interest rates are set to jump.
Home prices: There remains a glut of at least two years supply on the market when the ‘shadow’ foreclosed housing inventory data are included in the calculation and home prices on average have 10-15% downside before fully mean reverting with respect to residential rents and wage income.
Even though the S&P 500 has rallied more than 60% off its March 2009 lows, the index is still well below the 1,251.70 level it closed at on the Friday before Lehman’s bankruptcy filing. While the rally has been quite impressive, it pales in comparison to the gains we’ve seen in the corporate bond market. As of last week, the spread between Baa rated corporate bonds and 30-year US Treasuries had narrowed to its lowest levels since July 2007! Yes, you read that right – July 2007.
As investors worry about the prospects of a strengthening dollar in 2010, currency hedging has entered the realm of international exchange-traded funds.
President Obama is likely to propose a fee on financial institutions to help reduce the federal deficit when he releases his budget plans in February, although the details remain unresolved, according to administration officials.
sell SPDR-Financial (XLF);
10 Key Charts To See Before You Buy A Home
In 2040, the Chinese economy will reach $123 trillion, or nearly three times the economic output of the entire globe in 2000. China’s per capita income will hit $85,000, more than double the forecast for the European Union, and also much higher than that of India and Japan. In other words, the average Chinese megacity dweller will be living twice as well as the average Frenchman when China goes from a poor country in 2000 to a superrich country in 2040.
sell SPDR S&P China ETF (GXC);
German machinery and factory equipment orders continued to drop while overall bankruptcies are rising, two reports showed Tuesday, in signs that Europe’s largest economy is still struggling.
In a damning report published as the eurozone grapples with its worst financial crisis since the euro’s launch in 1999, the Commission said figures from Greece’s were so unreliable that its budget deficit and public debt might be even higher than government had claimed last October.
Reading The Herald Tribune over breakfast in Hong Kong harbor last week, my eye went to the front-page story about how James Chanos — reportedly one of America’s most successful short-sellers, the man who bet that Enron was a fraud and made a fortune when that proved true and its stock collapsed