Global Economy Bursting?

[Couch Potato]

Crack Between Oil Contracts Grows

Can someone explain what this means? The pros are concerned over the large spread.

http://online.wsj.com/article/SB10001424052702304778304576377980050734192.html

One thing it means is the writer has no clue. Giving one change as a percentage and the other as a specific amount is pitiful writing.

As to want the widening spread the most likely thing it means is market manipulation in one or the other. Multiply those numbers by 1,000 and pretend they are comparable houses. Now evaluate the spread between prices.

 

[Workbox]

Economic data may be as grim as bad summer movie

This could be the seventh possible week for a sliding market. This week will be the test. Any of you out their into numerology:icon_mrgreen:?

http://www.marketwatch.com/story/economic-data-may-be-as-grim-as-bad-summer-movie-2011-06-12

Asian stocks slip on U.S. losses, lower crude

It seems like a domino effect, yet something bugs me about the bad news. Its when its unexpected is when they get you.

http://www.marketwatch.com/story/japan-shares-open-lower-on-weak-data-us-losses-2011-06-12

 

[Randolph Kinney]

Crack Between Oil Contracts Grows

Can someone explain what this means? The pros are concerned over the large spread.

http://online.wsj.com/article/SB10001424052702304778304576377980050734192.html

Brent crude is the oil that is shipped primarily to Europe and comes from Africa and some Mideast countries. Brent is higher because of the hostilities, oil interruption and the threat of supply contraction. There is a risk premium.

Light sweet crude is the oil that the U.S. buys and does not come from the same oil fields that supply Europe. However, there is arbitrage between the two, especially as the price spread widens. This causes WTI price to be dragged up, regardless of supply-demand.

 

[Natalie117]

this might just be the Straw....

Chance of Another Round of Easing by Year-End: Roubini


Published: Saturday, 11 Jun 2011 | 6:09 AM ET



http://www.cnbc.com/id/43364297

 

[Natalie117]

US Is Nearing Even Worse Financial Crisis: Jim Rogers



He called Federal Reserve Chairman Ben Bernanke a "disaster" who has "never been right about anything" since he's been in Washington. "I hope he doesn't come back with QE3 but that's all he knows. The only thing he knows is to print money."He predicted that after the Fed ends its quantitative easing program, known as QE2, this month, it may come back under another name.
"They're gonna bring it back because [Bernanke will] be terrified and Washington will be terrified," he said. "There's an election coming in November 2012. Washington's gonna print more money."


http://www.cnbc.com/id/43328325

 

[Randolph Kinney]

this might just be the Straw....

Chance of Another Round of Easing by Year-End: Roubini


Published: Saturday, 11 Jun 2011 | 6:09 AM ET



http://www.cnbc.com/id/43364297

He cites all the knowns for why there will be QE3.

“First of all, the fed is not going to raise interest rates for a long time; two, they're not going to reduce base money,” he said. “And if they're not going to increase it further, and therefore the fundamentals of relative growth differentials, or relative interest differentials and still a wall of liquidity chasing assets are going to imply that money could flow and continue to flow into emerging markets.”

If, however, money does flow out of emerging markets at the end of QE2, it would be because of risk aversion in the event the global growth scare worsens and drives investors back towards the safety of the U.S. dollar and Treasurys, Roubini said.

The problem with QE, it is not contained within the U.S. We don't get a benefit from rising asset prices outside the U.S. in developing markets. We do get a negative from rising commodity prices.

Safety and risk scares only serves to concentrate cash or near cash hoarding.

 

[Randolph Kinney]

Food prices climb further at grocery stores

http://www.marketwatch.com/story/fo...grocery-stores-2011-06-09?link=MW_latest_news

Shoppers paid 4% more for a basket of 16 food items at the supermarket in May compared to February, the American Farm Bureau Federation said Thursday in its latest informal survey. -- That's a 17% annualized rate of inflation, but don't tell Ben Bernanke.

 

[Randolph Kinney]

Fed gets a taste of painful exit strategies - junk debt does not sell well

http://blogs.reuters.com/columns/2011/06/13/fed-gets-a-taste-of-painful-exit-strategies/

 

[Randolph Kinney]

How The S&P 500 Could Easily Fall Another 10%

Read more: http://www.businessinsider.com/societe-generale-10-fall-in-the-sp-500-2011-6#ixzz1PFtFIvx9

 

[Workbox]

How The S&P 500 Could Easily Fall Another 10%

Read more: http://www.businessinsider.com/societe-generale-10-fall-in-the-sp-500-2011-6#ixzz1PFtFIvx9

Add this video with this chart. This is why they need a QE3 or what ever-else they may call it. A must watch.

http://www.youtube.com/watch?v=tODgOOEgXbc&feature=player_embedded