Bloomberg: Geithner: No ‘Magical Thinking’ to Fix Deficit

Related News: Economy · U.S.
Geithner: No ‘Magical Thinking’ to Fix Deficit
By Ian Katz and Rebecca Christie - May 18, 2011 10:49 AM GMT+0900

U.S. Treasury Secretary Timothy F. Geithner said budget deficits threaten to erode the nation’s economy and security and can’t be reduced with “magical thinking.”

Bloomberg: U.S. Industrial Production Stalls on Auto Disruption; Housing Starts Drop

Related News: Economy · U.S.
U.S. Industrial Production Stalls on Auto Disruption; Housing Starts Drop
By Shobhana Chandra and Bob Willis - May 18, 2011 1:05 AM GMT+0900

Industrial production in the U.S. unexpectedly stalled in April and housing starts dropped, posing hurdles to a rebound from the first quarter’s economic slowdown.

Bloomberg: U.S. Wheat Harvest May Be Worse Than Forecast

Related News: U.S. · Commodities · Canada · Latin America
U.S. Wheat Harvest May Be Worse Than Forecast
By Whitney McFerron - May 18, 2011 5:37 AM GMT+0900

Wheat crops in the U.S. Great Plains are showing signs that production may plunge more than the government forecast last week as hot weather and a lack of rain erode plant quality and force farmers to harvest early.

Bloomberg: Geithner Says Default Damage May Be ‘Irrevocable’

Related News: Bonds · Economy · Currencies · U.S.
Geithner Says Default Damage May Be ‘Irrevocable’
By Ian Katz and Daniel Enoch - May 15, 2011 2:44 AM GMT+0900

Timothy
Geithner,
U.S. treasury
secretary

U.S. Treasury Secretary Timothy F. Geithner said a default arising from failing to raise the debt limit could cause “irrevocable damage” to the economy, risk a “double-dip” recession and increase unemployment.

MarketWatch: Home prices won’t bottom until next year: Zillow

REAL ESTATE WEEKLY
May 13, 2011, 4:28 p.m. EDT
Home prices won’t bottom until next year: Zillow

By MarketWatch

The first quarter proved rough on home prices, as U.S. home values fell 3% from the fourth quarter — the biggest quarterly decline since 2008, Zillow.com reported this week.

Reuters: Jim Rogers says may short U.S. Treasuries, later today

Jim Rogers says may short U.S. Treasuries, later today

By Edward McAllister
NEW YORK | Tue May 10, 2011 7:18pm EDT

(Reuters) - Influential investment veteran Jim Rogers said on Tuesday he plans to short U.S. Treasuries, maybe as soon as later in the day, as he expects the end of the Federal Reserve's quantitative easing program to pressure government bonds.

Bloomberg: Commodities Trading Is Banking’s New Battleground: Commentary Matthew Lynn

Related News: Bloomberg, Economy, Africa, Australia, Europe, Latin America, Middle East, Opinion, Emerging Markets, Energy Markets, Finance, Commodities
Commodities Trading Is Banking’s New Battleground: Commentary Matthew Lynn
By Matthew Lynn - May 10, 2011 8:00 AM GMT+0900
Bloomberg Opinion

Forget bonuses. Don’t worry about bailouts. That’s all history. The battleground that matters most for the banking and finance industry right now is the profits it is making from commodities trading.

Bloomberg: Hedge Funds Rose 1.4% in April to Highest in Almost Three Years

Related News: Funds
Hedge Funds Rose 1.4% in April to Highest in Almost Three Years
By Kelly Bit - May 6, 2011 2:05 AM GMT+0900

Hedge funds climbed 1.4 percent in April to the highest level in almost three years as stock markets rallied amid rising earnings and the Federal Reserve renewed its pledge to stimulate growth with low interest rates.

Bloomberg: Europe Producer-Price Inflation Unexpectedly Accelerates on Jump in Energy

Related News: Europe · Economy · Retail
Europe Producer-Price Inflation Unexpectedly Accelerates on Jump in Energy
By Jones Hayden - May 3, 2011 6:20 PM GMT+0900

European producer-price inflation unexpectedly accelerated to the fastest in 2 1/2 years in March, adding to concerns that surging energy costs will feed through to consumers and prompt the European Central Bank to raise interest rates further.

PIMCO: The Caine Mutiny (Part 2)

The Caine Mutiny (Part 2)

- Low policy rates and the increasing negative real yields that they engender as inflation accelerates represent an immediate threat to investment portfolios.
- Bond prices don’t necessarily have to go down for savers to get skunked during a process of “debt liquidation.”
- PIMCO advocates a renewed vigilance, stressing bond market “safe spread” alternatives available globally, including developing/emerging market debt at higher yields denominated in non-dollar currencies.