Positives

1) UoM confidence rises to 5 month high
2) Initial Jobless Claims 4 week avg falls to lowest since Sept ’08
3) NFIB small business optimism index rises almost 3 pts to best since May
4) Wholesale Inventories jump more than expected, good for GDP
5) Global criticism of Fed’s money printing exercise

Negatives

1) Consumer 1 yr inflation expectations rise to 3%, most since June
2) 30 yr bond auction very weak, yield rises to 5 month high, 10 yr yield at two month high, avg 30 yr mortgage rate rises to one month high, has Fed lost QE2 war before it really began?
3) Chinese stocks slammed on inflation and rate hike fears
4) PIG debt blowing out, Spain and Italy also see rise in yields, pressure for Ireland to tap EFSF grows
5) From equity contrarian view, individual investor’s most bullish since Jan ’07
6) Wholesale Inventories rising, unwanted inventory?
7) CSCO disappoints, co specific or not?

Category: Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

19 Responses to “Succinct Summation of Week’s Events (11/15/10)”

  1. philipat says:

    USD/Gold not significant?

  2. cfischer says:

    Just curious BR, why is “5) Global criticism of Fed’s money printing exercise” a positive?

    I think the fact that S&P was down over 1%, while bond yields simulatously spiked (5 year jumped 17bps!) is a big negative.

  3. pielou says:

    http://www.huffingtonpost.com/2010/11/12/fed-animation_n_782929.html , this seems really funny, but should we laugh about it?

  4. franklin411 says:

    @cfischer
    This post was written by Peter Boockvar, who is one of the Bond Bois, not BR.

    Personally, I would note that the Japanese, Chinese, and Germans are all export-economies that have grown fabulously wealthy by exporting to the US, without allowing American products into their countries. It seems highly unlikely that our trade enemies–Japan, Germany, and China–want what is best for the American economy. If we rise, they fall.

    My position might change if I was like Boockvar–one of the people who have been destroying the American economy since 1980.

  5. spider92 says:

    Negative: US goes 0-2 in Far East with failure to secure free trade agreement with South. Korea and inability to persuade China to let the Yuan appreciate at a faster pace.

  6. Long term says:

    7) CSCO disappoints, co specific or not?

    unlikely to be co specific

  7. VennData says:

    Far Right Senator calls for a smidge of tax hikes.

    “I think the problem can be solved without any tax increases, but I’ll do what’s best for the country in the long term,” said Sen. Tom Coburn (R., Okla.). “If all I can get is 90% spending cuts and 10% revenue increases…I’ll go for that.” He added: “The point is that no one’s going to get it all their way.”

    http://online.wsj.com/article/SB10001424052748704756804575608944154277532.html?mod=googlenews_wsj

    P.S. Cisco is a commodity producer, Huawei is eating them alive.

  8. beaufou says:

    Peter, Ireland…

  9. Thor says:

    We need to cut back to get the budget under control. Let’s start by closing all our bases in South Korea and Japan. I think we’ve been covering the cost of their security for long enough.

  10. txbankruptcynerd says:

    Addendum to Negatives:

    8 – Perverse incentives in mortgage lending still rampant

    see also: http://txbankruptcynerd.blogspot.com/2010/11/blogtasm-more-socialized-losses-for.html

  11. Chew on this one boys. They aren’t even hiding it any more:

    Bush: “I’d have endorsed Obama if they’d asked me”

    ……President Bush told British officials in the heat of the 2008 presidential election, “I’d have endorsed Obama if they’d asked me,” according to a November 9 blog entry by Financial Times of London correspondent Alex Barker. The Financial Times is the chief British financial newspaper, a newspaper that corresponds roughly to the New York-based Wall Street Journal.

    Barker observed that his two sources for the quote note that Bush had been asked by British officials in a private meeting that included British Prime Minister Harold Brown what Bush thought of McCain and the U.S. presidential election. According to Barker, his two sources said Bush responded:

    “I probably won’t even vote for the guy,” Bush told the group, according to two people present. “I had to endorse him. But I’d have endorsed Obama if they’d asked me.”…..

    http://www.thenewamerican.com/index.php/world-mainmenu-26/europe-mainmenu-35/5158-bush-id-have-endorsed-obama-if-theyd-asked-me

  12. number2son says:

    Let’s start by closing all our bases in South Korea and Japan. I think we’ve been covering the cost of their security for long enough.

    Agreed. Close every last base in Europe, too. And get the f#$k out of Afghanistan and Iraq already! Cancel expensive and obsolete weapons systems programs and close more military bases in the U.S.

    But you can bet the loudest fiscal conservatives will get very quiet indeed when it comes to rolling back the military industrial complex. Just watch, VennData, Sen. Coburn will be mouse-like in his silence.

    I’ll work until I’m 69 (if I can find work) if that means taking on my share of the sacrifice all Americans must assume to truly solve this mess, but unless it is a shared burden (and yes, that means repealing the Bush tax cuts for everyone making > $150K, goddamit!) then it won’t fly. And yeah, I’m in that group.

    But President “Hope and Change” has a different plan: appease the far right to make his prospects for reelection glow a little brighter. He’ll learn in 2012 that this is doomed to failure. In any case, it’s long past time for this man to show some genuine leadership.

  13. number2son says:

    ‘Commonman, it’s no surprise whatsoever that there is no love lost between Bush and McCain. And why wouldn’t Bush like Obama? There has been virtually no difference in their mismanagement of the financial crisis.

    The Who said it best: http://www.youtube.com/watch?v=Rp6-wG5LLqE

  14. Greg0658 says:

    “rolling back the military industrial complex” .. I understand the sentiment .. but what do you do with the unemployed .. 1. turn those factories into butter factories 2. put them on unemployment benefits until the next required war 3. make buses and commuter trains that put car makers out of work ??

    unfortunately we have made a good living (spinning stuff) and have transformed j6p into that MIC support (on our overall tax base for the world corporacy to tap on the shoulder whenever needed) … funny thing this economics spin zone

  15. louis says:

    Positive- When I google The big picture, Barry is #1

    Negative-When I google big picture, Barry is # 2

    2. We bailed out GM but cannot buy any of their stock this week. Cue the Ostrich.

  16. Greg0658 says:

    louis .. I been playing that one too (only in my head) .. 1. is the government protecting you because they see the end game .. or 2. is the K& Wstreets cutting you out …..

  17. “rolling back the military industrial complex” .. I understand the sentiment .. but what do you do with the unemployed .. 1. turn those factories into butter factories 2. put them on unemployment benefits until the next required war 3. make buses and commuter trains that put car makers out of work ??

    rumor has it the southern border needs defending

  18. obsvr-1 says:

    @pielou Says:

    http://www.huffingtonpost.com/2010/11/12/fed-animation_n_782929.html , this seems really funny, but should we laugh about it?

    art imitates life … very funny … the sad part is we are living in the the wake of the mess and BB is still the captain of the ship and has the throttle set at full speed ahead

  19. Ryan Caldwell says:

    Off topic here… just have to make a comment on the Quote of the Day on this page re: Dave Silverman and athiesm. I challenge any athiest who doesn’t believe in God to prove to me there isn’t one.

    ~~~

    BR: It is incumbent upon any putting forth any claim to prove — not for everyone else to disprove.

    Otherwise. I can just declare the Flying Spaghetti Monster the one true lord and then challenge you to disprove that . . .