“Further significant improvements in the unemployment rate will likely require a more rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies.” – Ben Bernanke
Does this mean QE3 is full steam ahead? Or does this mean Ben Bernanke is beating that dead confidence-horse, reminding us (again) that rates are not going to be raised.
Don’t be surprised when you get caught having read too far into this. If Bernanke could get away with printing, he would have done so already. It’s not exactly a secret that the jobs market is fostering under-employment.
I’ve already picked my side. I’ll see you QE3 speculators at your one year anniversary.
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10-Year Bond Yields:
Greece 20.36%
Portugal 12.58%
Hungary 8.93%
Spain 5.31%
Italy 5.00%
Belgium 3.32%
France 2.92%
Netherlands 2.45%
U.K. 2.26%
U.S. 2.25%
Germany 1.87%
Greece yield is up and over 20% gaining almost 250 basis points since Thursday. Portugal is moving sideways and their yield curve remains inverted from the 5’s thru the 30’s indicating recession ahead. Hungary steadily climbs higher day after day. Yields are blowing out higher; perhaps a bell will ring when it hits 9%? Spain’s plans for austerity are hitting a snag today in addition to the slaps in the face from Italy and Finland. Spain 10-year yield is moving sideways, actually lower than Friday, now at 5.31%. Italy sits directly on top of the 5% level. France is below 3% the first time in a week.
Decoupling…
Cain,
Slightly off topic but I remember you writing about CLP a few weeks ago and I recently came across some decent research reports on REITs. If you’re interested, I’d be happy to send you them. Nevertheless, do you still like CLP?
Yes I still like CLP. I’m nervous about the impact phasing out Fannie and Freddie might have. But the performance of AEC and CLP has been strong. And they are taking full advantage of this housing market.
very under employed mr.cain,i see it all around me everyday now. so what little,to less, we have now, still goes into what is needed for every day life,which just keeps people flat…so yea,the country is just going nowhere,quicker.
I added TVIX this morning around $6.60. Just keeping that position around .5% of assets.
Sorry I’ve been out all morning. I took the day off to get some relaxation in with the Mrs.