Last week, we looked at a perfect central bank intervention. Markets reacted immediately shedding about 400 points off the value of the Yen against the Dollar.
Despite positive market signals and an extension of a Greek default, fundamentally nothing has changed and more is sure to unfold in this European saga.
Developments in Europe are showing the effects of investors who have lost the least bit of hope that Greece can come out of their quagmire without a default.
Markets are dysfunctional because they mirror dysfunctional political systems and political players and dysfunctional monetary policies.
Market Wrap offers a summary of this week’s interesting market events and major economic news from financial risk-management expert Clemens Kownatzki.
In this Week’s Issue Weekly Snapshot Market Barometers Weekly Chart Lines In The Sand Recommended Read Weekly Snapshot • Dow sinks below 12,000; stocks had the sixth straight weekly loss (AP) • China posted a smaller-than-expected trade surplus in May of $13.1bn (Reuters) • The average U.S. homeowner now has 38% equity, down from 61% a … Continued
Can’t see the above video? Click this link to watch. In this video, Davide Accomazzo, adjunct professor of finance, discusses the global currency imbalance and what implications it carries. Questions for Professor Accomazzo: 1. What is the “global savings glut?” 2. How has the United States tried to reverse current account deficits in the past? … Continued