Tag Archives: libor


Stalking the Bear Part 5: The Final Installment

No need to stalk anymore, the Grizzly is now in plain sight and gorging itself on hapless bulls.  I started the ‘Stalking’ series on March 30th with the intention of raising the awareness of readers to the dangers lurking in the financial forest. From the April highs to the recent May low, the S&P500 dropped 14.6%, NASD Comp. 15.6% and the […]

US$/S&P 500 Correlation, Dollar Cheaper to Borrow Than the Yen, AIG Momentum Discussed

As the graph above illustrates, a serious correlation between the US$ and the US equity markets has developed over the last 9+ years. This correlation is strong and for policy makers in Washington, rather disturbing. The relationship is as follows: If the US$ loses value the equity markets have rallied and if the US$ strengthens equity markets have sold off. […]

Credit Thaw, LIBOR Trend, Commercial Paper,M Hanson Real Estate, CA Home Sales Report, Earning of Interest ABX, NETL

We have been following the LIBOR story since the beginning of the credit crisis. Conventional wisdom suggests that if the LIBOR rate is going up then there are problems with the credit markets and if rates are going down then credit is flowing freely. This story highlights a possible wrinkle in this theory. Rates are clearly going down but the […]