Global Macro Perspectives
U.S. Government support to the housing market could claim another victim – The FHA. WSJ stories: Housing Agency Reserves Fall Far Below Minimum; The FHA’s Bailout Warning. The odds are U.S. government would have to step in once more because failing to react would add another leg to the housing downturn. We have witnessed that […]
All chips in for the Barrick Gold. The largest gold producer in the world plans to issue new equity to terminate hedging contracts. Brave. We will see if it pays off. Reuters story: Barrick to sell $3 billion in stock to buy back hedges
Major news yesterday was consumer credit decline. Reuters story: July consumer credit falls a record $21.6 billion It’s obvious that consumer credit/spending fueled recovery is not at the moment on the table.