Thorough credit summary without HYPE

100% Thorough Analysis
Here's an important summary of the present state of credit markets. LIBOR, TED-spread, US Treasuries, and many more indexes. The article is rich with graphs, so it's easy to see where we are and where we have been. It's written matter-of-factly which makes it non-inflammatory.
If you're looking for something over these holidays to sit back with for a few minutes and take stock of the situation, it's extremely worthwhile.
One final reminder... continue to watch the credit markets, not the stock markets, for a most true reading on the economic state of the world.

MERRY CHRISTMAS!



The photo is of our home's entrance... lots of snow!

On Coming Train...

Exports Collapsing
From the New York Times...
Japanese exports collapsed 27% in just one month! If you think the bottom is already in the stock market and dollar, there's this bridge in Brooklyn you might wanna buy.
I hope to pen an extended prognosis on our political economy before the New Year is upon us. The general thesis will be: for the past 25 years or more, stock market return have been abnormal by historical measures. Therefore, the market indexes are going to reveret to the historical norms. Can you visualize the Dow at 2000?
Cheers!

Not Cheerful or Hopeful

Severe Recession
Bloomberg Japan reports a record drop in exports, a record rise in the Yen (which = a record fall in the USD), and the Japanese central bank is now buying corporate debt (the FED is doing that here in the US).

Bread and Circus Free-For-All

From the Financial Times 12/20/2008
http://www.ft.com/cms/s/0/989db158-ce30-11dd-8b30-000077b07658.html?nclick_check=1

According to reports in the Financial Times those who know more than us, are going to lend your (as in YOUR) money to the hedge funds. Oh, don't fret, it's only $200 Billion.
Keep in mind, that among other stellar reasons to trust this is a good idea, is that hedge funds did second tier investing with Bernie Madoff. "What Me Worry?" Seriously, I'm waiting for the Mad Magazine "FED" issue. Are Alfred E. Newman and Ben Bernake the same person? Seems more and more likely.

Going For Baroque!

Sadly, the over-the-top days of Baroque architecture are long past. Happily, the days of over-the-top Baroque banking are everywhere. They, led by the FED, are all Going For Baroque!