SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 396.31-0.6%Dec 31 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: carranza2 who wrote (59314)12/23/2009 7:23:48 PM
From: TobagoJack1 Recommendation  Read Replies (1) of 218882
 
just in in-tray, per FEAR n greed

· The close of the year has been marked by a lease of life for the US dollar which was clearly overdue given how “oversold” the currency had become. The rationale seems to be part greater optimism on the US economy, and part renewed jitters about the financial and fiscal integrity of Euroland courtesy of the widening spreads on Euroland government bond yields.

· This US dollar move should be seen as an opportunity for owners of dollars to sell dollars, though GREED & fear would not be in too great a rush to do so. GREED & fear would advise investors to buy more gold bullion if they see the gold price back at the US$1,050/oz level and buy more if bullion goes lower.

· The ten to two year US Treasury bond yield spread is now at its widest in more than 30 years amidst almost near universal consensus that the yield curve is going to continue to steepen in 2010. But if deflationary pressures remain as stubbornly entrenched in 2010 as GREED & fear suspects, then the surprise will be that the gap gets filled by a renewed decline in Treasury bond yields.

· Restoration of Glass-Steagall, or some modern equivalent, is clearly the only sensible public policy towards the financial services sector given the vast losses sustained by taxpayers as a result of securitisation gone mad and given the continuing reluctance of officialdom to allow banks to fail.

· Bank of England Governor Mervyn King has again made the point that “Too Big to Fail” was a luxury that Britain could simply not afford. Yet it remains remarkable to GREED & fear how little has been done in 2009 to combat “Too Big to Fail” despite the vast sums lost. It also remains remarkable to GREED & fear how little has been done so far to reform the role played by credit rating agencies.

· One seemingly concrete development for greater discipline in the system has been the new Basel BIS proposals for banks’ Tier-1 capital which recommends that core Tier-1 capital should consist predominantly of common shares and retained earnings, and not “hybrids”.

· Still the tough new mechanism is not as tough as made out because of the policy on implementation, which is hardly aggressive. And doubtless it will become even less aggressive if market focus switches during 2010 to the very real risks still lingering in Western banking systems.

· GREED & fear is confused about what the Copenhagen pantomime has achieved, if anything. Still it is clear that neither America nor China would agree to meaningful cuts. If governments really want to confront environmental degradation then they should tax fossil fuel consumption aggressively. This is a much more direct approach to addressing the problem than the carbon trading scam.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News