Weekend Reading – Stuff we found interesting this week

Welcome to our weekly roundup of the stuff we read that was interesting to us and hopefully to you.

It was big week for equities which were under pressure, USD likewise.  Risk does feel a bit like old cheese though.

Phil Chronican, ANZ Australian Banking Boss spoke candidly about housing – text only version here

The new Australian Treasury Boss, Martin Parkinson spoke of a golden age but at least gets the fact mining isn’t the whole Australian economy.

AFTER ALL OF THIS WEEK’S POSTS  and with the weakness evident we wonder how anyone can think that  the economy is doing well and in good shape if mortgage arrears are rising. It is irreconcilable with strong retail sales. RBA can not tighten surely

Janet Yellen changed her tune on the effect of the Fed’s QE but scared us about neophytes using leverage. We blogged here  

Gee the Eurozone problems are becoming a disaster. Martin Wolf, the world’s best financial journo here. Overnight bounces suggest the money is coming for Greece though.

China is emerging in a way that suits them. A currency that is as weak as they can get away with and a military force that is constrained but worrying. What a challenge for a big country of only 20 odd million people like Australia.

Is Jean Claude Trichet trying to crash the Euro? We thought this was a step beyond. If  Europe wants to integrate then fabulous get on with it but to tell the Greeks were taking over sure…try that on West Australia, oh sorry the Fed’s did. That didn’t work!

We live in the best country on the planet, stable, friendly, egalitarian…we are lucky:

The US ISM (institute of supply management) used to be called the National Association of Purchasing Managers (NAPM) – at least when I started in the market – and we used to call it napalm, and it was the second most important number each month after non-farm payrolls. The name change seems to have changed its importance – very important to us behaviorists – but napalm is pointing DOWN DOWN DOWN…watch out for Monday’s post on this topic and what it means for markets.

We’ve all got to eat but this is scary…it’s easy to pretend it won’t effect us, but it will.

And of course the FT’s week in review

Have a great weekend

Greg McKenna

greg@lighthousesecurities.com.au

www.twitter.com/gregorymckenna

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One Comment on “Weekend Reading – Stuff we found interesting this week”

  1. Tristen Cosgrove Says:

    We do indeed live in the “Lucky Country”. Regarding the article on rising food prices squeezing the poor, I totally agree. I published a newsletter, dated 23rd December 2009, which included the following when talking about the period ahead:

    “Potential for global shortages in food and energy which can lead to price rises for those commodities. This can lead to higher prices in wealthy nations and disaster for poorer nations.”

    Well done, Greg!

    Reply

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