Wednesday, May 30, 2012 – Spanish Winter, Mexican Spring – by Sinclair Noe

DOW – 160 = 12,419SPX – 19 = 1313NAS – 33 = 283710 YR YLD – 0.11 = 1.62%OIL – 3.38 = 87.38GOLD + 7.70 = 1563.50SILV +.05 = 28.03PLAT – 28.00 = 1406.00 Yesterday the Dow gained 125 and I said: “The reason du jour for today’s market gains: positive news regarding Greece. Really? I’m not buying it. Make up your own reason for today’s gains because we are just as likely to see declines tomorrow.” And sure enough. The problem du jour was Spain and the Dow dropped 160. This economic stuff is easy. Remember when I told you a couple of months ago to get out in May? The S&P 500 has fallen nearly 6 percent in May, heading for its worst monthly performance since September. You’re welcome. The Nasdaq is down 6.9% for the month. US Treasury benchmark yields fell to their lowest in at least 60 years. Oil dropped more than 3 percent to the lowest level in nearly six months; oil prices are down 16% in May. The dollar remains the cleanest shirt in the dirty laundry hamper, up 5.5% for the month. The euro dropped below $1.24 to a 23-month low. Spain’s stock market hit a 9 year low. Yields on 10-year Spanish bonds topped 6.6%, which is close to levels at which Ireland and Greece sought international bail-outs. The news from Europe was all Spanish overnight as the country struggles to find traction on any plan that will lead it away from the …


March, Thursday 22, 2012

DOW – 78 = 13,046SPX – 10 = 1392NAS – 12 = 306310 YR YLD -.02 = 2.28%OIL +.16 = 105.51GOLD – 5.20 = 1645.90SILV -.58 = 31.69PLAT – 17.00 = 1624.00 Do you remember hearing that there will be no more bailouts? Well, it’s not just a lone voice. The Dallas Federal Reserve has just issued its annual report and the title is “Choosing the Road to Prosperity. Why We must End Too Big to Fail – Now”. Ending bailouts is not a new idea, but we’ve never really heard it from one of the branches of the Fed. The letter also voices strong opposition to Dodd-Frank, but not for the reasons you might think; rather, that Dodd-Frank doesn’t go far enough. Dallas Fed President Richard Fisher, generally known as one of the most hawkish and conservative Fed Presidents wrote the letter; I’ll share some of the highlights: Letter from thePresidentIf you are running one of the “too-big- to-fail” (TBTF) banks—alternatively known as “systemically important financial institutions,”—I doubt you are going to like what you read in this annual report. Memory fades with the passage of time. Yet it is important to recall that it was in recognition of the precarious position in which the TBTF banks and SIFIs placed our economy in 2008 that the U.S. Congress passed into law the Dodd–Frank Wall Street Reform and Consumer Protection Act. While the act established a number of new macroprudential features to help promote financial stability, its overarching purpose, as …