Investment Markets Overview – w/e 9th May 2014

Week Ending 9 May 2014.

In her testimony this week before the congressional Joint Economic Committee, Federal Reserve Chair, Janet Yellen, said the US economy is on the mend but reiterated that the central bank is prepared to act should it falter, going on to state, “a high degree of monetary accomodation remains warranted.”She appeared blasé about the weak first-quarter GDP growth and aside of putting it down to the harsh winter weather, as she did the other week, she also mentioned that events abroad, such as the turmoil in emerging markets and the ongoing crisis in Ukraine, could impact US growth. In fact she appears ready to blame anything except, of course, the Fed’s own monetary policies which have been so damaging in helping to create enormous speculative bubbles and mal-investment. However, the adulation and “lip-service” that politicians have accorded the Fed is on the change, as evidenced by remarks from Representative Kevin Brady. He said, “having served on the committee in the early to mid-2000s, your able and very highly respected predecessor sat where you sat and assured the committee that maintaining low interest rates for an extended period wouldn’t cause general price inflation or inflate an unsustainable asset bubble – which didn’t prove to be the case.After the credit-fuelled housing bubble burst in 2007, your predecessor assured the committee that the resulting weakness would be confined to the subprime segment of the housing market and the damage would be limited to about $150 billion- it wasn’t.

9 May Comm

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 . . .

Returning to the “blame game” phenomena developing between congress and the Fed, UK Chancellor, George Osborne….

Charts:
1.Indices Weekly
2.US Consumer Credit Outstanding V Net Change
3.E-Z Investor Confidence V Retail Sales
4.Japan Monetary Base V CPI
5.Commodity 1 Week Moves

_______________________

The Real Test of a Great Leader is to Accept Responsibility

_______________________

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

Table:

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

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: