Philippines’ Bond Sale Fails for 2nd Time This Year
Reasons for the failure include such one-off country specifics as:
'“The market is risk averse because of the deficit, the exit strategy of central banks and election concern,” said Oliver Jimeno, first vice president and treasurer at Chinatrust (Philippines) Commercial Bank in Manila, one of the nation’s 40 primary dealers. “The market is vulnerable to any bad news.”'Yeah the Philippines are messed up bad.
It Begins: Japanese Post Bank Urged To Diversify Away From Government Bonds
Now this one I almost scanned over, but get this line:
“Nearly 80 per cent of Japan Post Bank’s funds go towards buying JGBs, but from now on [any increase in deposits] could go towards buying corporate bonds . . . and US Treasuries,” said [Shizuka] Kamei, who is also in charge of postal reform.If we have had problems selling debt I am not aware of it, why is Mr. Kamei saying that?
His comments come amid growing fears about the risks of sovereign debt after governments around the world have borrowed record sums to support ailing economies in the wake of the financial crisis.
“The US is having difficulty due to a lack of funds. It’s only natural that we should support the US when it is weakened so Japan Post Bank’s funds may go towards that,” said Mr Kamei.
DR Horton Returns to Profit
When you get to play games with tax windfalls you make money! A winning strategy for the homebuilders.
What is American Corporatism? - By Robert Locke
Loyal reader Gawains submitted this article for a read last night. It was written in 2002 and damned if the guy did not see the future! Long piece but so worth your time.
The last mention goes to Jesse's Americain Cafe. If I could write this well I would put up a donation button and imagine that readers could recognize brilliance when they saw it and make me rich! As things are, my stuff is 100% free!
On Monetary Inflation and M3
The discussion covers monetary issues related to inflation but then describes fiat in a way that I agree very much with. Snippet to get you hooked:
One might look an an unconnected car battery and say, 'oh look it is benign.' But grab hold of each of its terminals with your bare hands while grounded, and see what happens then. And gold is in part measuring that potential, for the Fed and the monetary base and a resurgent economy to generate monetary expansion. There are lags of years involved in the process.
And this is the nature of Bernanke's challenge. He must at some point allow the economy greater access to his excess monetary reserves, and the swollen monetary base, but try to prevent the dollar and the bond from igniting. And gold is where the prudent seek at least a partial refuge while the central bankers conduct their experiments.
Is gold a bubble? It is said to be so by those who wish you to extend your willing hands, and grasp the poles of their mad experiment, without reserve, to help them measure the effect. And, of course, by those who merely to stand by and watch, and plan for their own per capita increase in wealth if you are subsequently reduced to toast.
Have a good night.