Canadian Dollars – The US in Real Terms – … In Canadian-dollar terms, US GDP is the lowest it has been since the first quarter of 1998. While significant inflation has yet to show up in US CPI numbers, it is apparent that the US ‘growth’ of the past decade was largely a money-illusion. ... – Plan B Economics
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Welcome to the 2009 Worldwide Bull Market Rally – Mark Perry’s Carpe Diem Blog
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Charts: Betting Your Dollar’s Bottoming – by RANDALL W. FORSYTH – … Veteran technical analyst Martin Pring sees signs the Dollar Index may be on the verge of a rebound. In his weekly note to subscribers, Pring says the dollar has the potential to rally as it is “challenging” its downward sloping trend line while its rate of change is turning positive. At the same time, however, there also is a potential for the Dollar Index to break down as it has been moving in an ever-narrowing channel. “The battle lines then, are at 77 on the upside and 74.4 on the downside,” Pring writes. … – Barron’s
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Investors strategize for Fed’s exit from MBS market – By Julie Haviv and Daniel Bases – Investors who reaped robust gains in U.S. mortgage-backed securities by piggy-backing on the Federal Reserve’s $1.25 trillion buying program are bracing for the end to the central bank’s support — and positioning themselves for a new round of profits as prices cheapen – Reuters
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2 interviews – Danielle Park Provides More Sense on Cents – we hare half way thorugh a aseclar bear market says Danielle – good thoughts on risk – Larry Doyle – Sense on Cents
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Carry Trade and market rallies – The Fed’s airheaded bubble orthodoxy – By Steven Pearlstein – … For many investors, in fact, the cost of money is effectively less than zero, as economist Nouriel Roubini likes to point out. If you borrow dollars at near zero percent interest in the United States, exchange the dollars for Thai bhat, and invest the bhat in government bonds paying 4 or 5 percent, you not only get the benefit of the interest rate arbitrage but you also gain when you sell the bond and exchange the bhat back into dollars that have since depreciated. Roubini calls it “the mother of all carry trades,” … – Washington Post
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How US investors can play the carry trade – Felix Salmon – has a list – When I wrote my blog entry on currency ETCs yesterday, I wasn’t aware of the various carry-trade products available on US exchanges. But after a very informative conversation with Morningstar’s Bradley Kay this morning, I’m now much more up to speed. And while there’s nothing in the US quite like the UK products, there are still a fair few carry-trade vehicles to choose from. – Reuters Blogs
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Picture du Jour: Plunging dollar erodes non-US investors’ returns – Posted by Prieur du Plessis – … The graph below shows the performance of US 10-year Treasury Notes since the beginning of March in both US dollar terms (red line) and euro terms (blue line). Whereas US investors are showing a poor return of -2.8% for the period, European investors are completely under water to the tune of -17.5%. … – Investment Postcards from Cape Town
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New York Fed Bringing Mortgage Bond Purchasing In-House, Halves External Managers – Submitted by Tyler Durden – … has chosen to throw sand in the eyes of all those who claim its days of secrecy must end, and has decided to beginning purchasing the QE allocated portion of MBS/Agency bonds directly from the market using in-house personnel, and bypassing external managers. This way, most information leakage will be prevented, the Fed can buy (never sell) however many MBS it wants while disclosing whatever (if anything) it chooses, with nobody being the wiser, and 30 year mortgage rates continuing their inexorable creep to zero percent. – Zero Hedge