Floors, Ceilings, Camels, Straw

There was a very interesting article in the Pimco Investment Outlook for December 2006 by Bill Gross entitled Reality Check. Gross talks about a new derivative credit product retailed to institutional buyers under the sticker known as a CPDO or “constant proportion debt obligation.” It is a very interesting conversations so let’s tune in.Things are…

Maxed Out

Are we about to see a trend reversal in reality television shows from the likes of Flip This House to Maxed Out? I have not seen Maxed Out but I am positive it will be a welcome change over the current financial wizardry garbage telling everyone years too late how to make a fortune off…

A Lit Fuse in Key West

I have a new set of posts from a friend living (and renting) in Key West who posts on my board on the Motley Fool under the name “FreeThinkerKW”. The first post is from a week or two ago, and the update to that post is from December 1. A Lit Fuse Every Friday in…

World Trade Progress

Reuters is reporting Brown, Paulson call for WTO progress. I must note that Mish has been calling for world peace for years but no reportable progress has been sighted. Is this a chicken/egg which comes first kind of thing (no free trade without world peace/no world peace without free trade)? While pondering that question here…

An email from Bernanke

I was quite surprised to wake up this morning and find an Email from Ben Bernanke sitting in my inbox. It was in response to Bernanke’s Box. I wanted to share it with everyone. It seems the Fed is about to initiate a new policy of speaking exactly what is on their minds. The following…

Bernanke’s Box

The box Bernanke is in keeps getting tighter and tighter. First-time jobless claims Soar State unemployment benefits rose by 34,000 to 357,000 The number of U.S. workers applying for jobless benefits climbed by the highest amount in more than a year last week, to 357,000, the Labor Department said Thursday. First-time claims for state unemployment…

It’s all an illusion

MarketWatch is reporting Fed’s big worry gets revised away. A huge spike in wages and salaries in the second quarter proved to be an illusion, according to the latest data from the Bureau of Labor Statistics and the Bureau of Economic Affairs.The revisions released Wednesday show that growth in unit labor costs (and therefore in…

Open Market Operations, Interest Rates, and Gold

I have been reading many claims in many places lately that “The Fed is pumping M3″. Others claim that Fed Open Market Operations (repos and coupon passes) are purposely being used by the Fed to fuel the stock market. Others still point to manipulation in gold. This post attempts to look at those claims. Let’s…

Is California Going Bankrupt?

History is about to repeat in California as the State’s cash flood may be receding. It’s familiar: A handful of Californians make a killing on investments, and their tax payments send state revenues soaring. Lawmakers go on a spending spree, without a plan for paying the bills when fortunes turn. That was the late 1990s,…

October Housing Starts, Permits, Foreclosures

Was it just last month that Greenspan and David Lereah at the National Association of Realtors were declaring a bottom in housing? That myth was shattered on November 17th when the Census Bureau released the Residential Construction Report for October 2006. Building Permits Building permits fell 6.3 percent to a seasonally adjusted annual rate of…