Wall Street

Wall Street

Wall Street Trapped In The Inability Of Yields

Many important assets have been trapped in broad trading ranges in recent years despite substantial political upheaval Some examples are the US Treasury 10-year yield which moved between 1.5-2.5% for 3 years or the German Bund 10-year yield between 0-1% for 3 year. According to BoAML, “this inability of yields, the US dollar & volatility
 to break out reflects the inability of the economic cycle to generate strong growth & inflation.”


Markets know the game: Reducing investors’ EPS expectations so firms can beat them

The Corner | April 12, 2015 | Earnings season is warming up on Wall Street. During the week the major US banks will present their results (tomorrow, JP Morgan and Wells Fargo), which will impact the course of American stocks in the short/medium term. Should US companies show a pessimistic picture with their 1Q earnings, that would mean the US economy is in worse shape than predicted. But are these expectations part of a wider game?


No Picture

The Tea Party and Wall Street might not be best friends for ever, but they are for now

WASHINGTON | By Mike Konczal at The New Republic, via The Next New Deal | Our problem today was not caused by a lack of business and banking regulations,” argued Ron Paul in his 2009 manifesto End the Fed, which outlined a theory of the financial crisis that only implicated government policy and the Federal Reserve, while mocking the idea that Wall Street’s financial engineering and derivatives played any role. “The only regulations lacking were the ones that should have been placed on the government officials who ran roughshod over the people and the Constitution.”


Moscow

Russia, an Italy with 8,500 atomic bombs

WASHINGTON | By Pablo Pardo | According to the IMF, Russia and Italy have about the same nominal GDP, though, if you adjust it to its purchase parity power, the Russian economy may be 50% greater than Italian. Still, Russia has two and a half times the population of Italy, which explains why its nominal GDP per capita is half of Spain’s (even in real terms, Spaniards are 60 percent richer than Russians). So, Vladimir Putin has managed to achieve for its country a global importance that, taking its economy into account, it does not deserve.