Again treasury and equity prices rallied last night, in the wake of Chair Yellen’s semi-annual testimony. Market reactions were rather a surprise, given that the FOMC head’s position was far from dovish. Specifically, she was very upbeat on the US economy, underscoring that rate hikes are coming before long. Why would the market abjectly ignore such information? Continue reading
It has been one of those CNBC days. Not the “loads happening, need to watch tv all day” type of CNBC day, but the “tv on silently in the background” kind of day. So, as Greece and Ukraine simmer, journalists have been thrashing about for other topics to report. Oil took a dive, which was an easy whack, we’ll take a look at that. And dividends keep popping up too. I have a question for you about them… Continue reading
Greece is all over the news once more. It’s true, life in Greece remains awful. The economy has shrunk 5%, not relative to pre-crisis levels, but relative to before it joined the euro. But right now, the Greek story isn’t about the suffering of a people long cheated by their leaders. These days Greece has new, popular leadership, and the story is about how they are going to stand up to Europe’s sadistic policies to defend people’s rights.
Sounds nice, but it is nonsense. Greece’s new leadership is pursuing a determined campaign to pick apart the substance of European unity, the essence of the European project, which Mario Draghi saved when he promised to do “whatever it takes”, which Germany signed up to when it finally allowed the ECB to decide a program of broad government debt purchases.