Balance Sheet of the Federal Reserve Bank and the M1 Multiplier Ratio

March 23, 2011

Balance Sheet of the Federal Reserve Bank and the M1 Multiplier Ratio


ECB Rate Increase May Hurt Spanish Homeowners Most: Chart of Day

March 10, 2011

This is quite telling of at least one underrated risk of continued economic growth and the eventual raising of global interest rates.  It would be interesting to see the same data for the US.  If US numbers are as high as the PIGS, we are very likely to be back in a recession in the next 1-2 years, and odds are it will be just as bad as the last one, with one exception in that the suspension of mark to market accounting and stiffer capital requirements might work into fooling people that the banking system might still be solvent.  Its really frightening to consider that the end-game of a massive credit crisis is an even larger one.  When I see charts like this it is hard to imagine how we move forward, without worry, until all bad debts are written down.  Does not bode well for asset prices.

ECB Rate Increase May Hurt Spanish Homeowners Most: Chart of Day
2011-03-08 23:01:00.0 GMT

Variable Mortgage Rates in Europe

By Sharon Smyth and Charles Penty
March 9 (Bloomberg) — Homeowners in Spain, where 97 percent of about 616 billion euros ($857 billion) of mortgages have variable interest rates, may be the most vulnerable in Europe to higher borrowing costs, hurting the economic recovery.
The CHART OF THE DAY shows that Spain has the highest ratio of outstanding floating-rate mortgage loans in the region, ahead of Portugal, Ireland and the U.K., according to data compiled by the European Mortgage Federation. Europe’s average is less than 50 percent, based on the figures.
Policy makers, led by European Central Bank President Jean- Claude Trichet, have voiced concern inflation may become entrenched after keeping interest rates at record lows to fight the financial crisis. Trichet said March 3 that the ECB’s key rate could rise from 1 percent as early as next month.
“Higher interest rates enter the bloodstream of the Spanish economy almost immediately like an intravenous injection,” Cesar Molinas, an independent consultant and former head of European fixed-income strategy at Merrill Lynch & Co., said in a phone interview, “Higher interest rates immediately subtract from disposable income so they will have a direct impact on consumption.”
Spain, which has the highest unemployment rate in the euro region, emerged from an almost two-year recession in 2010. While exports underpinned the recovery, austerity measures and rising unemployment undermined consumption at home. Spending was flat in the fourth quarter.

For Related News and Information:
Home-ownership rates: ALLX HOWN <GO>
Spanish economy stories: TNI SPAIN ECO <GO> Global economy top stories: TOP ECO <GO> U.S homebuilder top stories: TNI USTOP HOM <GO> Charts, graphs home page: GRAPH <GO>

–With assistance from Ainhoa Goyeneche in Madrid. Editors:
Christiane Lenzner, Frank Connelly

To contact the reporters on this story:
Sharon Smyth in Madrid at +34-91-700-9601 or;

To contact the editor responsible for this story:
Andrew Blackman at +49-30-70010-6223 or

ECB Rate Increase May Hurt Spanish Homeowners Most: Chart of Day
Bloomberg, Sharon Smyth and Charles Penty
March 8, 2011

Welcome to New York City, 1609

November 26, 2010

Stumbled on this last weekend researching my New York City neighborhood of Greenwich Village.  Thought it was an extremely cool concept, with a whole new and almost endless project for Google maps.

Hey Google Map guys!  Once you map the whole globe by van, can you then try mapping the whole globe again by century, decade, year?

How amazing would it be to take any spot on earth and be able to watch its metamorphosis chronologically?  Assuming the Google Map guys keep on doing what they are doing, this may be possible in 10, 20…100 years time.  But it would be fun to go backwards from today.  I’d love to see Manhattan, block by block, in chronological stop motion.  We might learn something about building cities if we could look at history that way.

In any event the link below to is best described by the summary in the site owner’s own words.  Click on the image of the website to be directed to their page or feel free to cut an paste the address:

Have you ever wondered what New York was like before it was a city? Find out here, by navigating through the map of the city in 1609. You can find your block, explore the native landscape of today’s famous landmarks, research the flora and fauna block by block, and help our team continue to rediscover 1609.

The Welikia Project

Why ‘Welikia’? And Where’s Mannahatta?

Long Term Investment Ideas by Region

April 14, 2010

There has been a lot of discussion over the future potential growth in the United State versus the developing world.  This chart provides a nice summary of the logic driving that argument.

I don’t know about you, but I’d rather be invested in countries with high growth rates, little or no deficits, low inflation and low unemployment.  Judging by those standards, it would seem that China, South Korea, Taiwan and Brazil may be smart places to be allocating capital.

World Market Capitalizations April, 13 2010

World Market Capitalizations April, 13 2010

You Can’t Make This Stuff Up… “Dick’s added: BJ’s removed from US 1”

April 13, 2010

A recent research piece from Bank of America Merrill Lynch actually carries this title:

Dick’s added; BJ’s removed from US 1

Apparently BOAML has added Dick’s Sporting Goods (DKS) to its buy list while simultaneously removing BJ’s Wholesale Club from the list.  I guess compliance and marketing staff’s have been cut to the bone!

Copyright prevents me from posting it, but I have clipped the title for posterity.  Call your local BOAML representative for a full copy!

Dick’s added; BJ’s removed from US 1

Friday Afternoon News: $134 Billion in Smuggled US Bearer Bonds

June 14, 2009

Someone once told me to make sure you read the Friday afternoon news, because that is the time that important items that folks want you to miss are published.  That said, there is this strange story floating around about $134 billion in US Treasury bearer bonds that were allegedly being smuggled by two men from Italy to Switzerland.  I have no idea if the story is true, and if it is, if the bonds are real, however since a number of the links I followed came up as 404 errors, I thought I’d memorialize two legitimate sources announcing the story.  One from and the other from The Independent in the UK.  Oddly, despite the fact that the story references $134 billion in US denominated securities, and despite the fact that that amount of money would make the two men one of our country’s largest bond holders, this story has not been syndicated up by US mainstream media.

6.12.09 Bloomberg - Japan Probes Report Two Seixed with Undeclared Bonds

6.12.09 Bloomberg - Japan Probes Report Two Seixed with Undeclared Bonds

6.14.09 The Independent - $134bn bond scam arrests

6.14.09 The Independent - $134bn bond scam arrests

For a deeper analysis as to how legitimate this story might be, see the snarky letter to Tim Geitner at Zero Hedge titled: An Open Letter To The Secretary Of The Department Of The United States Treasury

$134bn bond scam arrests
Hannah McCarthy, The Independent, June 14, 2009

Japan Probes Report Two Seized With Undeclared Bonds (Update2)
Shunichi Ozasa and Makiko Kitamura, Bloomberg, June 12, 2009

An Open Letter To The Secretary Of The Department Of The United States Treasury
Marla Singer, Zero Hedge, June 13, 2009

Geography of a Recession

April 16, 2009

Interactive chart from the NYT.  Click on the image to go to the interactive site.

NYT: Geography of a Recession

NYT: Geography of a Recession