iBankCoin
Home / 2012 / June (page 30)

Monthly Archives: June 2012

How to Distinguish if You’re Running With Smart or Full Retard Money

“Market observers often divide investors into “smart money” and “dumb money.” Our researchshows there may be a way to figure out which group you are in.

The first place to look is prices, which reflect the interaction of smart money and dumb money and may contain valuable information about the proportion of either in the market. In other words, the price knows which category we belong to. The trick is to extract that information.

Consider a simple example of a simple market: betting on a horse race. Say there are two horses, A and B. And there are two types of bettors, smart money and dumb money. We place our bet on horse A because we think it is more likely to win. It turns out that 75 percent of the money is on horse B, and 25 percent is on A. These “prices” can help us learn whether we are more likely to be the dumb money or the smart money.”

Full article

Comments »

GM to Close a Plant in Germany

GM will close its first plant in Germany since WW2. Amazing how plants stayed open longer in Germany than here at home. Makes you wonder if labor costs were really a problem here at home.

Full article

Comments »

The Swiss Central Bank Continues to Weaken the Franc; They Vow to Stay Vigilant

“The Swiss central bank pledged to keep defending its franc cap and left borrowing costs at zero to protect the economy from “exceptionally high” risks as the euro area’s crisis intensifies.

The Swiss National Bank (SNBN), led by President Thomas Jordan, today maintained the ceiling at 1.20 francs per euro and reiterated that it will uphold the measure “with the utmost determination.” The Zurich-based central bank also kept its benchmark interest rate on hold, as projected by all 20 economists in a Bloomberg News survey.”

Full article

Comments »

The Swiss National Bank Says Credit Suisse Needs a “Marked Increase” in Capital Reserves to Combat EU Debt Woes

Credit Suisse Group AG (CSGN) needs a “marked increase” in capital this year to prepare the bank for a possible worsening of Europe’s sovereign-debt crisis, the Swiss central bank said. Credit Suisse shares fell as much as 8.8 percent.”

Full article

Comments »

The Greenback Takes a Step Back as QE is Widely Expected by the Market

“The dollar declined before a U.S. report that economists said will show consumer prices fell in May, strengthening the case for the Federal Reserve to take more steps to bolster the economy.

The U.S. currency declined versus 13 of its 16 major counterparts ahead of data tomorrow forecast to show industrial production almost stalled in May and manufacturing in the New York region slowed this month. Gains in the euro were tempered after Spanish bonds slumped after Moody’s Investors Service cut the nation’s credit rating and Italy’s borrowing costs rose. New Zealand’s dollar strengthened after the central bank left interest rates unchanged.”

Full article

Comments »

Merkel Continues to Stall; Says Germany Will Lead in Crisis Solving, But Looks to G-20 for Help

In expected form Merkel continues to play games with really acting swiftly to curb European debt problems. She is looking for G-20 help. Q: If the G-20 did not help last year with Greece, then why would they help now with Spain, Italy, and Cyprus ?

The G-20 meets in Mexico next week and Merkel plans to pitch them. Hopefully she drinks the water and gets Montezuma’s revenge.

Full article

Comments »

European Markets Fall on Moody’s Downgrade of Spain and Cyprus

“The European debt crisis deepened as the credit ratings of Spain and Cyprus were downgraded by Moody’s Investors Service.

Moody’s yesterday cut Spain’s rating three steps to Baa3, one level above junk, from A3, citing the nation’s increased debt burden, weakening economy and limited access to capital markets. Moody’s also lowered Cyprus’s bond rating to Ba3 from Ba1, attributing the downgrade to the material increase in the likelihood of a Greek exit from the euro area, and the resulting increase in the probable amount of support that the government may have to extend to Cypriot banks”

Full article

Comments »

Visual History of Financial Crisis 1810 to 2010

This graphic is based on the New York Times and Wall Street Journal best seller This Time Is Different: Eight Centuries of Financial Folly by Carmen M. Reinhart & Kenneth S. Rogoff. Using data developed by Reinhart and Rogoff, it maps the cyclical history of financial crisis from 1810 to 2010 for sixty-six countries representing 90% of world GDP.

See the graphic here.

Comments »