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Popular myth and, allegedly, the laws of aerodynamics have it that the bumblebee should not be able to take flight. Yet still, our good bumblebee refuses to be pulled down by such details and year after year it takes flight as if nothing has happened. This allegory applies, with some imagination, to Japans economy too. [...]

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The US Financial Conditions Index (BFCIUS) is a composite measure of the condition of U.S. financial markets, using yield spreads, indices from bond, equity and money markets. Right now, it is at a 32-month high.

But, while this is supposed to measure market strength, it really seems to measure market bullishness. I see the US [...]

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FT.com – Spain has the means to avoid Greece’s fate
FT.com – Mohamed El-Erian – How to handle the sovereign debt explosion
BofA under regulatory pressure to shrink: report| Reuters
Second Lien Writedowns, II « Rortybomb
Discouraged older job seekers give up, calling themselves retired – MSN Money
Chase Returns Retired Teacher’s Stolen $6,200 – [...]

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Highlights
The US dollar is mixed against the major and emerging market currencies.  The euro is consolidating in yesterday’s range as bonds stabilize and despite a smaller than expected German trade surplus.  Comments from EU spokesperson Altafaj just before the NY open that measures taken by Greece are sufficient have so far failed to take the [...]

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The US dollar and yen are trading with a firmer tone against the major and emerging market currencies.  But the markets still appear to be consolidating and we expect the “rule of alternation” to remain in play meaning that the top side of the euro’s range was tested yesterday and the bottom side around [...]

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The following is a post by Marc Chandler, global head of Brown Brother Harriman’s top ranked Currency Strategy Team. For more of BBH’s currency views, please visit the BBH FX website here.
Highlights
The US dollar was largely weaker vs. the majors, as early gains were wiped out during the North American session.  EUR/USD made a marginal [...]

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The following is a post by Marc Chandler, global head of Brown Brother Harriman’s Currency Strategy Team. For more of BBH’s currency views, visit the website here.
Greek bonds are continuing to recover from the sell-off at the end of last week that took the 10-year yield to 6.65%.  Now quoted near 6.12%, it is the [...]

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That’s the question on everyone’s mind and the one Bill Gross of Pimco attempts to answer in this month’s Investment Outlook. He starts out defining the problem as a lack of aggregate demand – the Keynesian understanding of depression.
To begin with, let’s get reacquainted with the fundamental economic problem of our age – lack of [...]

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Uber-technician Louise Yamada is now warning that the secular bear market in equities is likely to be joined by one in bonds as well.  In the video below, she talks with Bloomberg’s Pimm Fox about her view that bond yields are going to rise over time.
I find her analysis that secular cycles in the bond [...]

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The following is a post by Marc Chandler, head of Brown Brother Harriman’s Currency Strategy Team. For more of BBH’s currency views, visit the website here.
Pessimism pervades discussions of Europe today.  Optimists are not to be found.  Many warn that the entire economic and monetary union project is likely to falter over the large deficit [...]