The world has shown EU that a trillion dollar bailout is no more than a flop movie with a lifespan of just one week at the box office. The value of the euro is back to where it was before the announcement of the trillion-dollar bailout. Solutions to highly complex problems are indeed very simple.…Details
Europe has decided to emulate the USA’ is the trillion-dollar news, which translated into ‘a single step by the EU, a giant leap by the global markets’. The European union was established with the main motto of being a different and better economic model than the US. However, at the sign of the first crisis,…Details
Earthquakes and market corrections happen in minutes not months unlike the recovery. Most of us are familiar with breaking news about a major quake (in earth or in a financial market) in some corner of the world. A quake swiftly finishes it work, while the news about it, starting with its magnitude and epicenter continues…Details
While panting during a game of soccer (football), I felt I covered a lot of distance and then I somehow pitied the ball. I felt it was covering more distance than anybody else on the field in addition to getting kicked around very often. I was pondering about the feelings of the ball if it…Details
The current macroeconomic situation in the world can be summarized as many asset bubbles flying blind. The emerging economies are developing asset bubbles while the western ones are flying blind.
The mainstream media in India was busy analyzing the union budget in the first two weeks of March 2010. This annual event in India has lost much of its significance, as the Indian economy is not insulated anymore. Lack of fiscal prudence on the part of the union government was the salient feature of the…Details
Global equity markets are expected to continue their sideward movement in the coming weeks and months until the incidence of some black swan event like a sovereign default.
The global equity markets have remained range bound in the first financial quarter of the calendar year 2010. Deleveraging and lack of lending by banks in the western economies have kept the equity markets within a range. The steps taken by the central banks of countries faced with high intransigent inflation have pulled out some…Details
Commodity markets are expected to remain range bound in the near future. Prices of edible commodities are expected to inch higher while those of base metals and fuels could witness corrections.
The factors that are keeping the global equity markets within a tight range are also keeping the commodity markets within a range. The price of crude oil has reached the upper end of its price range and it is finding the ceiling of US $84 US a barrel very difficult to break. The prices of base…Details
Bullion markets are exacerbating the patience of short-term traders as the prices continue to be highly range bound. No change is expected to happen until some major global financial event occurs.
The prices of bullion metals are expected to remain range bound in the near future just as they have been in the recent past. The tug of war between quantitative easing in the US and UK and austerity in EU and tighter monetary policies in emerging markets is maintaining the price of bullion metals within…Details
The overall health of the world economy seems precarious at the best. The shift of economic strength from the developed economies to the developing economies is evident. Imprudence with which countries continue to print money and stimulate economies will lead to a weaker dollar in the long term. In such a scenario, Gold would be…Details
The German Luftwaffe is on its way to help Greece by bombing the enemy and to protect its empire. The French are also making statements but unfortunately they are famous for losing wars. Most of us would be surprised to know about the war raging in Europe. For a change all the major European countries…Details