Bernanke hit the stop-orders of the foolish investor-crowd
Today almost all the markets had crashed, after a publication of protocols of an old FED meeting held on March 13th. On that meeting it becomes clear that the FOMC doubts on starting the QE3. Panicked by this the markets went on bear tactics and everything went down, while dollar - up. But let's see what exactly happened. On March 27th (2 weeks after the protocolled meeting) Bernanke said that may be QE3 will soon start. At that day the FED Chairman must have known of the March 13th meeting, as he has chaired it. So Bernanke knows of the minutes of the meeting and knows that they will be published on April 3rd. Anyway on March 27th he demonstrates that the QE3 is highly probable. The reaction of markets then was bullish.
Read more...Germany undermined the EU-salvation program
German government has undermined its own efforts to save the euro and the EU as a whole, after it negotiated a 6,3% rise in salaries of public-sector workers. Chancellor Angela Merkels team faced a risk of general strike of public workers, after their union, called Verdi, placed an ultimatum and requested a 6,5% rise in salaries. The syndicalists rejected a 3,3% offer from government and insisted on 6,5%. Finally the government accepted 6,3% making itself look funny on a stage of all-EU-wide spending cuts.
Read more...Did Bernanke detonate the markets, or it was the inflation...?
Today a hesitating talk from Bernanke has made most markets to explode, starting a new rally, motivated by inflationary expectations. Bernanke said he is not sure, but maybe he will print some more money to help further the economy that already has given some signals of recovery... At the moment investors heard this, the markets of almost everything skyrocketed, killing irreversibly any hopes of bear-investors.
Read more...$8 per gallon - not just a nightmare
The news that Saudi Arabia is intending to act on oil markets to press the prices down led to a small 1% decrease of the crude-oil-price on Tuesday. On that day came the information that the top oil producer has hired 11 supertankers (2 million barrels each) to transport an extra oil to United States in response to rising oil prices. On the same day the Saudi Oil Minister Ali al-Naimi said that the kingdom was pumping 9,9 million barrels per day - the highest level in decades. He added that they have readiness to supply every request from customers and Saudi Arabia is willing to turn the taps to maximum capacity of 12,5 million barrels per day immediately. Months ago Saudi Arabia announced that it finds $100 per barrel as "ideal" oil-price.
Read more...Is Apple bribing investors?
March 19th was a great day for Wall Street, for technology business, for S&P 500 index and for generally exhausted from uncertainty in this crisis investor. On that day Apple announced it will pay dividends and will buy back some shares in a 3-years operation that will cost billions of dollars.
This generous decision by Tim Cook and his board kicked up all the market and created new hopes for an end of already years long markets confusion. Apple is paying, Apple has big cash, Apple will save the technology and the business at all...
But let's look a little ahead and analyze what is happening, out of emotions...
