Globalization and the End of the Labor Aristocracy, Part 3 - On the current structure of globalization and its implications for the distribution of income within and between countries.
10 minutes ago
The U.S. Federal Reserve is also active in currency markets, German Economics Minister Rainer Bruederle said Friday.
His comments come on the heels of remarks made by his Swiss counterpart who said that the Swiss National Bank purchased euros to buttress the single currency.
"It is a regular procedure of central banks," to intervene in currency markets, Bruederle said. "It is not a secret," that central banks have a foreign exchange rate target, he added.
Bruederle said "eruptive" movements have to be avoided. He previously said that China holds 25 percent of its foreign exchange reserves in euros.If the fed feels that they need to participate in the currency markets...treasury markets, bond markets, derivative markets - why not stock markets - stock market futures no less? Where will they stop? In any case, the one thing that is clear is that the Fed will lose...the main question is when? Everything in my system work is saying its pretty soon - if not now. A rally is possible, not necessary.
With first-quarter earnings basically in the books (99% of S&P 500 companies have reported for Q1 2010), today's chart provides some long-term perspective to the current earnings environment by focusing on 12-month, as reported S&P 500 earnings. Today's chart illustrates how earnings declined over 92% from its Q3 2007 peak to Q1 2009 low -- the largest decline on record (the data goes back to 1936). Since its Q1 2009 low, S&P 500 earnings have surged (up over 700%) and currently come in at a level that has only been exceeded during the latter years of the dot-com and credit bubbles.