Financial Sense

Germany Fights on Two Fronts to Preserve the Eurozone
Stratfor's picture

The European Court of Justice announced Sept. 22 that hearings in the case against the European Central Bank's (ECB) bond-buying scheme known as Outright Monetary Transactions (OMT) will begin Oct. 14.


Big Four Economic Indicators Update
Doug Short's picture

According to the Bureau of Economic Analysis, Personal Income (PI) in August rose 0.3%. Transfer Payments (TP), which includes Social Security, Medicare, Medicaid, government & private pensions and miscellaneous welfare programs) rose 0.7%.


Priming the Pump for Q3 Earnings
Sheraz Mian's picture

Today’s data from China and Japan provides further evidence that the emerging signs of a growth spurt at home will remain unsupported by weakness abroad. This may not be a big deal for U.S. economic growth, but it could become a challenge for the corporate earnings picture.


Future Bull
John Mauldin's picture

Let me admit up front that this EVA has been rolling around in my mind for quite awhile. Its genesis may be directly related to the fact that I’ve been desperately yearning to write a bullish EVA — besides on Canadian REITs or income securities that get trounced by the Fed’s utterances.


How Much Longer Can the Global Trading System Last?
Michael Pettis's picture

My last blog entry inspired an old Brazilian friend of mine, with whom I hadn’t had any contact for years, to comment on this section of the interview...


How Rising Interest Rates Could Spell the End of the U.S. Energy Boom
Oil Price's picture

The winding down of extraordinary measures taken by the U.S. Federal Reserve to ameliorate the effects of the financial crisis could reverberate through energy markets.


Myths: Past, Present, and Future
Jeffrey D Saut's picture

In past missives I have discussed why I do not believe the Cyclical Adjusted Price Earnings Ratio (CAPE) is a good measure of valuations. The problem is that the CAPE uses a 10-year backward looking average of earnings.


Why a Peak in the Bond Market May Be Near
Sober Look's picture

One of the factors contributing to treasury market's strong performance this year has been the Liquidity Coverage Ratio (LCR), a Basel III-based requirement for banks. These rules go into effect in 2015 and are phased in gradually through 2017 in the United States


MIT vs. ShadowStats – Who’s Right on Inflation?
Matthew Kerkhoff's picture

Few financial topics elicit as strong an emotional reaction as inflation. That's probably due to a number of factors including its "hidden tax" nature as well as the seemingly ambiguous process of calculating this illusive figure.


Why Stock Investors Should Care What Happens in the Junk Bond Market
Chris Puplava's picture

While Bill Gross is capturing headlines today, what carries far greater significance to the market is the action in the junk bond markets. Someone in the space yelled fire at the start of the year and investors have been heading for the exits.


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