Investment Markets Overview – w/e 21 Feb 2014

As the 30:1 leveraged Lehman Brothers Bank collapsed in the autumn of 2008 it would appear that the Bernanke Fed were both divided and fairly clueless on how to respond, at least that’s how it appears from the transcripts of the September 2008 FOMC meeting released this week. Apparently Ben, who remember spent the whole of his academic career studying the 1930s depression, thought that cutting interest rates would be inflationary, despite the fact that US CPI had fallen from 1% in June 2008 to 0.7% in July and was at -0.1% by August. The records certainly show Fed officials struggling to understand the magnitude of the financial crisis that was underway and the potential fallout for the economy, albeit that another member of the FOMC committee did state the obvious, “the failure of a major investment bank, the forced merger of another, the largest thrift and insurer teetering, and the failure of Freddie and Fannie are likely to have a significant impact on the real economy.” Don’t hold your breath for wise-guidance and unity going forward.

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Subscribe to the Full Investment Markets Overview Newsletter which contains the following:-

Additional Commentaries:

  • US economic data . . .
  • Euro-Zone   . . .
  • The UK . . .
  • Out East   . . .
  • The $US index  . . .
  • Within the commodities complex  . . .
  • Economic data due next week includes  . . .
  • The G20 road-show opens in Sydney this weekend, with the official theme stated as, “restoring global growth,”

Charts:

  1. Indices Weekly
  2. US Housing Starts vs US Home Builders Sentiment
  3. UK Retail Sales by Volume Q on Q vs UK Average Regular Pay Q on Q
  4. Japan GDP Q on Q vs Japan Department Store Sales
  5. Commodity 1 Week Moves

Table:                

13 Indices, 11 columns of detailed information, for accurate analysis

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“Divide and Conquer or Divide and Fail?

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Click  HERE to view Details of the full version of this Newsletter which includes full text and detailed Charts for each section

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