2 + 2 = 4
Stocks continue their climb – actually they are going through a sideways trough right now.
Bond interest rates are rising – this is not a good sign.
The Dollar continues its strengthening
Gold continues falling – and I hope it continues for a long time because I want a cheap price to buy back in.
Oil and gasoline are now falling slightly after their recent rise. So, this is a sideways move.
In the news today……
Greece – has had its sovereign debt downgraded by all 3 major rating companies (S&P, Fitch, and now Moody’s). It has been predicted that 2010 could be the year of bad sovereign debt. We will see. Countries in trouble, besides Greece, are Spain, Portugal and Ireland – the PIGS as they are quaintly called – plus Russia, Latvia – and then watch out for surprises by the UK and USA.
An AIG Executive – will get $4.26M bonus this year. This person was decided to be crucial to the operation of AIG, so Obama’s Pay Czar has approved this money. Interesting, isn’t it?
Banks who support politicians by donations – get more help from the government. This was a result of an academic study recently performed. Do you find this as funny as I do? This is like saying 2 + 2 = 4. The newspapers could have just asked any of the economyguy readers, and they would have known the truth of this matter.
The Swiss Government – is thinking about making its banks (UBS and Credit Suisse) have 45% of deposits as reserves. Naturally, these banks are “talking” to their government to ease this burden. BUT, WHY is the Swiss government thinking about this requirement? That is the key question!!!! What could possibly be coming that the Swiss fear that depositors might want to have a run on their bank???? As a reference point, the reserve requirement is 10% in the US.
Tonight’s Dinner Conversation…..
The Budget Deficit. Do you think the government is spending too much money? There are those who don’t think they are. They think we can spend out way out of the recession. Of course, most of these people make their money from that money being spent – so of course they would say that and not jeopardize their income.
Here is a cartoon to focus your mind.
Government Spending
Here are the last numbers for today:
Dow Jones 30 Industrial – 10,414 (up )
10 Year Treasury Bond – 3.68% (up )
Euro – $1.4274
Gold – $1097 (down )
Oil – $73.34 (down )
Gasoline – $1.90 (down )
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