Posts Tagged ‘DPJ’

Notes From Underground: MOODY’S Downgrades Greece again, and yet the DOLLAR fails to gain strength

March 7, 2011

Moody’s, the major seers of economic events, has done it again. The Greek sovereign debt rating was lowered and rates on 2-year Greek notes increased to more than 15 percent. Rates on Greek 10-year debt rose to more than 12 percent, yet this is not an inverted curve that one would wish to buy. The group at Moody’s is awakening to the coming dreadful effects of the “NEGATIVE FEEDBACK LOOP.” The more the economy is squeezed, the less tax revenue is collected and that results in a further deterioration of the GREEK BUDGET. The Greek government is going to have to go back to the EU/IMF bailout gurus and ask for further assistance in preventing the next round of financing from causing a greater drain on Greek Government coffers. Imagine the deleterious effects of the Greek polity having to refinance its DEBT at current market rates rather than the considerable lower rates offered through the European Financial Stability Facility (EFSF).


Notes From Underground: BOJ is emergency meeting tonight–Shirakawa leaves Jackson Hole early

August 29, 2010

The Jackson Hole Symposium is over. The talking heads attempted to spin the Bernanke speech as the mainstay of the discussion. However, we are hard pressed to find anything new in what Bernanke had to say. He basically laid to rest the idea of cutting the interest rate on bank reserves since the FED seems to be very uncertain about the effects it would have on various market participants. Also, Chairman Bernanke seemed to slay the idea that the FED will move toward an inflation target. The markets took solace in the fact that the FED will be there to support the markets if the recovery grinds to a halt, but for now the FED sees no immediate need to undergo a new more robust QE 2.


Notes From Underground: Kan faces a big test within the DPJ–can he remain prime minister?

July 11, 2010

The biggest story from the weekend was the release of the Chinese trade numbers and surprisingly the export component rose 44 percent year-over-year, while the imports slowed resulting in an increase in the trade surplus.We know that this will not play well in Washington and will provide fresh fodder for the protectionist drumbeat that is looking for more participants to march along.