2012 Presidential Election

Wall Street Journal: Obama Wins a Second Term

MarketWatch: Of 5 'fiscal cliff' outcomes only 1 is disaster

MarketWatch: Of 5 'fiscal cliff' outcomes only 1 is disaster

FRB October Beige Book

FRB October Beige Book

The FOMC's October Statement

October 24, 2012 FOMC Statement

National Manufacturing Day

Facts from the U.S. Census Bureau on manufacturing:

• 12 million people currently work in manufacturing
• U.S. manufacturing is the world’s ninth largest economy
• 80% of the U.S. thinks manufacturing is critical to our nation's economy

http://www.mfgday.com/

The Federal Reserve's September Economic Projections

FOMC projections: September 2012

Home Depot Continues To Lead In The Consumer Discretionary Sector

Home Depot (HD) reported strong second quarter 2012 sales in its earnings call on August 14. The company grew net sales 1.67 percent from the previous year and 15.51 percent for the quarter. Read more ...

Investment Opportunity In The Real Estate Market Focused On The Construction Industry

Freddie Mac's July 2012 U.S. economic and housing market outlook provides some interesting insights on the real estate market and, more specifically, the construction industry. In July, the agency increased its second-quarter outlook on housing starts, housing sales, and housing price appreciation. Based on the report, housing starts show the greatest potential for improvement in the next 12 months. Read more ... 

The housing market recovery

Wall Street Journal

Has Housing Hit Bottom on Your Street?

European Leaders Divided

Wall Street Journal

EU Leaders, Divided, Push Growth

Retail Sales Advance

Wall Street Journal

Retail Sales Advance

Bank Earnings Reports

Wall Street Journal
Bank Earnings Worry Investors

Gold Prices Settle Higher

The gold futures price on June contracts rose $13.80 to $1,643.90 a troy ounce. The commodity's price gain followed March's weak employment report, which speculators feel will lead to continued accommodative policy moves by the Federal Reserve. Increased demand for gold continued on Monday as many investors seek to hedge against the effects that easy-money policies have on the dollar.

Wall Street Journal
Gold Prices Settle Higher

Euro Zone Raises Crisis Firewall Ceiling to €700 Billion

In a meeting Friday, Euro-zone finance ministers decided on an increase to the Euro-zone's bailout limit on both the EFSF and ESM funds to 700 billion euros ($930 billion). The expansion option must now be ratified by the 17 Euro-zone member parliaments.

The expansion decision follows recent injections by the ECB of liquidity in the form of low lending rates for the Euro-zone region.

Despite the liquidity boosts, the yields on Italian and Spanish debt have continued to rise. The Euro-zone finance ministers increase to the lending limits for the EFSF and ESM funds are ahead of expected requests for aid by these two countries as well as continuing aid needed by Greece, Ireland, and Portugal.

Wall Street Journal
Euro Zone Raises Crisis Firewall Ceiling to €700 Billion

Fed Comments Fuel Stocks

Wall Street Journal
Fed Comments Fuel Stocks

Bernanke Says Low Rates Didn't Fuel Bubble

Wall Street Journal
Bernanke Says Low Rates Didn't Fuel Bubble

Bond Trading Revives Banks

Wall Street Journal
Bond Trading Revives Banks

Greece and the Eurozone

Wall Street Journal
March 8: Europe Bank Forecasts Economy to Shrink
March 9: Greek Debt Restructuring Triggers CDS Payouts
March 10: Greece Defaults, and Tries to Move On

Fed Bond Buying

'Sterilized' Bond Buying an Option in Fed Arsenal
Fed Statement Following March Meeting

Fed Takes a Break to Weigh Outlook

Wall Street Journal
Fed Takes a Break to Weigh Outlook

Greek Debt Swaps

Greek debt investors face huge losses if their bond holdings are required to be converted following a default. Payouts have not yet been triggered but plans for payout are on the horizon. The payout anxiety follows laws passed this week that would force write downs and conversions on the country's bond holdings in the effect of a default.

The author reports bondholder write downs of 53.5% for private sector investors. Additionally, bondholders would be required to swap their holdings with new bonds that have longer maturities and lower coupons. These write downs and conversions would provide payout aid for Greece but cause significant bondholder losses.

This is just one hurdle for the debt riddled country as it faces further discussions with its Eurozone counterparts. Eurozone leaders would like to create a plan that would alleviate further future defaults, provide aid to Greece for their payout requirements, and limit the losses to bondholders.

Wall Street Journal
Greek Debt Swaps Explained

ECB's LTRO Has Little Impact on Risky Assets

The European Central Bank (ECB) gave the Eurozone another huge boost this week. The central bank offered 529.5 billion euros ($712.8 billion) in three year loans to 800 of the region's banks.

The ECB's lending strategy, known as the LTRO or Long Term Refinancing Operation, provides term loans to government banks at low market rates. The LTRO lending program is designed to ease liquidity pressures on Eurozone banks by providing them with lower rate loan options.

The offering is the second of its kind by the central bank. The first offering, last December, helped to rally Spanish and Italian bonds. So far, the second offering has minimally impacted risky assets in Spain and Italy but the ECB is hoping the second offering will have broader effects on rate offerings in Eurozone government bond markets.

Wall Street Journal
Banks Use ECB Loans to Suit Own Needs
ECB's LTRO Has Little Impact on Risky Assets

Greece Rated in Default

Wall Street Journal
S&P Declares Greece in Default

New Push for Reform in China

Wall Street Journal
New Push for Reform in China

Greece is about Politics and Not Numbers

Wall Street Journal
Greece is about Politics and Not Numbers

Price-Rise Plateau

Wall Street Journal
Price-Rise Plateau

Dow Passes 13000

The Dow has risen 6.1% over the past seven weeks. With crude-oil prices reaching nine month highs, oil companies are the leading contributors to the Dow's gains. Bullish speculators see attractive stock valuation levels and improving consumer sentiment fueling further market accelerations. However, euro-zone debt woes and bank lending requirements continue to weigh on investor sentiment.

Wall Street Journal
Dow Touches 13000 but Can't Hold On

Moody's Cuts Six Euro-Zone Nations; U.K. Outlook Lowered

Wall Street Journal
Moody's Cuts Six Euro-Zone Nations; U.K. Outlook Lowered

Greek Parliament Approves Austerity Deal

Wall Street Journal
Greece Passes Sweeping Cuts

Obama's Budget Puts 2012 Deficit at $1.33 Trillion

Wall Street Journal
Budget to Call for Taxes on Wealthy

Greece Hope Boosts U.S. Futures

Wall Street Journal
Greece Hope Boosts U.S. Futures

Bernanke's Imprint on Fed Not Easily Erased

Wall Street Journal
Bernanke's Imprint on Fed Not Easily Erased

Romney Wins Big in Florida

Wall Street Journal
Romney Wins Big in Florida

Europe Tightens Fiscal Ties

Wall Street Journal
Europe Tightens Fiscal Ties

The Negative Effect of Low Rates

Wall Street Journal
The Negative Effect of Low Rates

The Federal Reserve's Interest Rate Forecasts

In the Federal Reserve's effort to provide more transparent disclosure on their policy direction they've begun to publish the FOMC's assessments following each of their meetings. This meeting's release showed two key policy categories: 1) Appropriate timing of policy firming and 2) Appropriate pace of policy firming.

In the February 1st release the majority of the participants felt the appropriate timing for policy firming to be in 2014. Of the 17 FOMC members, the majority felt the federal funds target rate would remain at 0.25% from 2012 - 2014 and reach 4.0% in the longer run.

Wall Street Journal
The Federal Reserve's rate forecast projections.

Europe Hit by Downgrades

Nine of the seventeen euro-zone countries had their debt rating downgraded last week. Germany remains the mainstay in the euro-zone keeping its triple-A rating.

Wall Street Journal
Europe Hit by Downgrades

Fed to Publish Rate Forecasts

In January, the Federal Reserve will begin releasing interest rate plans and forecasts. These forecasts are expected to be revealed after the Fed's January 24 - 25 meetings.

Wall Street Journal
Fed to Publish Rate Forecasts
Economists React: Fed Moves to 'Aleviate Uncertainty'