Asset Management & Market Research

Tuesday reads & daily charts ...

We scour the best of publications that cover the markets & economy, the world of business & finance, asset & wealth management, monetary & fiscal policy, Europe & Asia, the news & politics, science & technology … and throw in a bit of arts & entertainment, just to keep it light. Here’s what we found particularly compelling in the last 24 hours:

How Thatcher Saved Britain (Owens/Crook)

It’s Time to Practice the ‘Great Secret’ of the Markets (Saut/Minyanville)

Six years of low interest rates in search of some growth (Economist)

The coal industry is in far more trouble than anyone realizes (WonkBlog)

Macro Hedge Funds Still in a Funk (Institutional Investor)

Market Crash Likelihood Goes Up If Stocks Continue to Rally: Marc Faber (CNBC)

Facebook Home = Trojan Horse (The Big Picture)

Yes, people are hoarding bitcoins (Quartz)

Housing’s Big Challenge: $1 Trillion in Student Debt (CNBC)

Chained CPI’s Diminishing Returns for U.S. Budget (Orszag/Bloomberg)

Margaret Thatcher, an enlarger of British freedom (Sir Harold Evans/Reuters)

 

The charts come to us courtesy of Vconomics. Their comments on these charts are worth reading. These got our attention:

If there’s one thing the Federal Reserve has taught other central banks it’s the power of the ‘wealth effect’. And that’s exactly what the Bank of Japan is trying to do. However, what Japan is engaged in is extremely dangerous. Shock therapy has proved to be very successful when trying to stabilize a faltering economy. But using it as a tool to create inflation can cause an avalanche that throws the country into chaos.

On Friday afternoon, circuit breakers were triggered when Japanese Government Bonds fell to a record low of 32 basis points, but violently reversed to 65 basis points … in the same trading session! Instability and volatility in the second largest bond market is not something to take lightly. Especially when their currency has fallen nearly 20% in the last six months.

 

VCONOMICS US Debt & Fed & BOJ debt : gdp Apr 8



Author: Craig Dougherty

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