Thought for the day
“A return to first principles in a republic is sometimes caused by
the simple virtues of one man. His good example has such an influence that the
good men strive to imitate him, and the wicked are ashamed to lead a life so
contrary to his example.”
-
Niccolo
Machiavelli (Italian, 1469-1527)
Word for the day
Scofflaw (n)
A person who flouts the law, especially one who fails to
pay fines owed.
(Source: Dictionary.com)
Teaser for the day
Was US war against global terrorism just an extended
exercise to enhance homeland security post 9/11?
If yes, in hindsight should Europeans regret joining the
war?
Bewildered markets picks up wrong threads
She came, she spoke, and she sent stocks to a new all time high.
That is perhaps the simplest summary of what Janet Yellen did yesterday when,
as a result of her droning monotone, she managed to put the VIX literally to
sleep, which closed at the lowest since 2007 and the resulting surge in the
S&P was a fresh record high, because despite the "concerns" Fed
member have about record high complacency, all they are doing is adding to it.
And now that apparently the Fed has a market
"valuation" department, and Yellen can issue fairness opinions on
whether the S&P is overvalued, the only question is whether today, as a
follow through to yesterday's "buy everything, preferably on leverage,
sincerely - the Fed" ramp, the VIX will drop further. (Zero Hedge)
Yellen brushed aside concerns about quickening inflation,
diminishing labor-market slack and asset-price bubbles in a prepared statement
and press conference, emphasizing the Federal Open Market Committee’s view that
rates are likely to stay low “for a considerable time.” (Bloomberg)
The Federal Reserve continued to reduce its monthly bond-buying
program and held interest rates near zero even as it debated persistent
conflicting signals in the economy. In addition to continuing the scaleback of
its monthly money-printing efforts, the Fed slashed its outlook for full-year
economic growth, cutting gross domestic product growth forecast to 2.1 percent
to 2.3 percent. (CNBC)
On sidelines:
Argentina threatened to default on its debt on Wednesday when
the government called it "impossible" to pay bond service due on June
30, citing a U.S. court decision earlier in the day increased pressure on
economically-ailing country.
Remember, Buenos Aires is locked in a 12-year legal fight with
creditors who refused to participate in two restructurings that followed
Argentina's 2002 default on $100 billion in bonds.
The long impasse in the U.S. courts has kept the country from
accessing international capital markets as its economy stagnates, inflation
soars and central bank reserves fall. (Reuters)
Ukrainian troops and pro-Russian separatists were locked in
fierce fighting in the east of Ukraine on Thursday after rebels rejected a call
to lay down their arms in line with a peace plan proposed by President Petro
Poroshenko, government forces said. (Reuters)
Iraqi government forces battled Sunni rebels for control of the
country's biggest refinery on Thursday as Prime Minister Nuri al-Maliki waited
for a U.S. response to an appeal for air strikes to beat back the threat to
Baghdad.
If you are wondering why I
have chosen to reproduce miscellaneous global reports instead of analyzing the
events back home; my clarification is that is what our market is more concerned
about with PM Modi preferring to maintain silence and his minister dressed in
combat gears, searching for the threads where they can begin their “jobs”.
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