Monthly Archives: October 2008

What is the Value of Market Dividend Yields?

Blogging is often a cooperative venture, so this piece begins with thanks to three people: James Picerno of The Capital Spectator, who gave me the idea for this piece in his article, WHAT, IF ANYTHING, CAN DIVIDEND YIELD TELL US? Eddy Elfenbein, who saw a question that I posted on Bespoke’s website, and sent me […]

Redacted Version of the FOMC Statement

The Federal Open Market Committee decided today to lowerkeep its target for the federal funds rate 50 basis points to 1at 2 percent. The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures. Business equipment spending and industrial production have weakened in recent months, and slowing economic […]

Eight Notes and Comments on the Current Crisis

1) Greenspan — what a waste.  A bright, engaging man becomes a slave to the Washington political establishment.  Now he gives us a lame apology, when he should be apologizing for his conduct of monetary policy, which encouraged parties to take on debt because of the Greenspan Put.  Now the debts are too big to […]

When What Cannot Happen Happens, More Surprises Likely Await

After not feeling well for a few days, I am back to writing.  Let me start with a blast from the past from RealMoney, during happier times: David Merkel Swap Curve Inverts a Teensy Bit, for a Moment 2/17/2006 12:29 PM EST Nothing big here, but the swap curve briefly inverted twos to tens a […]

The Collapse of Carry Trades

In his usual brief style, jck at Alea displays the collapse of carry trades through the appreciation of the yen. Carry Trade: EUR/JPY Carry Trade: AUD/JPY Put on your peril-sensitive sunglasses before viewing.  When I was at RealMoney, I wrote a lot about carry trades, and how the end would be ugly.  We are experiencing […]