Morning Reading – December 27, 2010

FT BeyondBRICS: China: the long-awaited Xmas gift

China’s decision to raise interest rates on Christmas Day has given investors time to digest the news without rushing into action. Even when trading resumes on Monday, it is likely to be quiet, with the last week of the year traditionally a time for low volumes and subdued price movements.

FT BeyondBRICS: Asia markets wrap: Shanghai at 2-month low after rate rise

Chinese stocks fell nearly 2 per cent on Monday, after Saturday’s interest rate rise raised concerns of further tightening. The Shanghai Composite had gained earlier in the day, with analysts suggesting that lower liquidity had already been priced into the stocks, and that efforts to tackle inflation were welcome. Other Asian stock indices were broadly positive.

The Big Picture: The Only Constant Is Change (1881-2010)

I love this chart from Jame’s Montier’s latest missive, In Defense of the “Old Always.” We learn that major events occur quite regularly, while P/Es fluctuate fairly constantly . . .

The Big Picture: Job Offers Rising

The weekend WSJ reports on a positive economic development that might surprise some people: The increasing number of job offers…

The Big Picture: Going Bankrupt: 100 Bailed Out Banks

The WSJ reports today that nearly 100 U.S. banks that got TARP funds from the federal government in Q4 2008 are in danger of going bankrupt.

The Big Picture: Lessons from the Muni Bond Market in 2010

1) When Meredith Whitney talks about Munis, I turn down the sound.

2) The bond market can survive without bond insurance.

3) Bond insurance is not totally dead.

4) Build America Bonds (BABs) were a good thing.

What happened at the end of 2010?

Reuters: New claims may add to Nakheel’s legal woes: sources

Property developer Nakheel’s NAKHD.UL restructuring plan is being complicated by new claims from trade creditors that could lead to more legal headaches, two sources familiar with the matter said.

The Slope of Hope: Some Musings

As 2011 unfolds before us, I am thinking hard about my portfolio and how to position myself with the upcoming volatility.  To me, even if the FED is actively buying and adding liquidity to the market, headwinds are already blowing strongly.

The Slope of Hope: My Morning’s Inbox

Appropriate combination, yes?

Anyway, here’s what Tony sent me (which I appreciate). An ungodly high bull/bear sentiment.

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