Monday, August 31, 2015

Tuesday September 1 Housing and Economic stories


Malaysia and Indonesia lead emerging markets currency rout - (www.ft.com)  Here comes trouble. Emerging market currencies are enjoying a moment of respite today after relentless pummeling in the last few weeks. (That 'emergency markets' moniker seems to have been on the money.) The dollar has weakened 0.3 per cent against the Turkish lira, 0.1 per cent against the Malaysian ringgit, 0.25 per cent against the Indian rupee, 0.4 per cent against the South African rand and so forth, writes Joel Lewin. But if the rouble is anything to go by, this is nothing but a little breather. The dollar is up 1.09 per cent against the oily Russian currency, breaking Rbs60 per dollar for the first time since March.

23 Nations Around The World Where Stock Market Crashes Are Already Happening - (www.zerohedge.com)  You can stop waiting for a global financial crisis to happen.  The truth is that one is happening right now.  All over the world, stock markets are already crashing.  Most of these stock market crashes are occurring in nations that are known as “emerging markets”.  In recent years, developing countries in Asia, South America and Africa loaded up on lots of cheap loans that were denominated in U.S. dollars.  But now that the U.S. dollar has been surging, those borrowers are finding that it takes much more of their own local currencies to service those loans.  At the same time, prices are crashing for many of the commodities that those countries export.  The exact same kind of double whammy caused the Latin American debt crisis of the 1980s and the Asian financial crisis of the 1990s. As you read this article, almost every single stock market in the world is down significantly from a record high that was set either earlier this year or late in 2014.  But even though stocks have been sliding in the western world, they haven’t completely collapsed just yet. In much of the developing world, it is a very different story.  Emerging market currencies are crashing hard, recessions are starting, and equity prices are getting absolutely hammered. Posted below is a list that I put together of 23 nations around the world where stock market crashes are already happening.  To see the stock market chart for each country, just click the link…

Grad-School Loan Binge Fans Debt Worries - (online.wsj.com) Graduate students account for 40% of borrowing; many seek federal forgiveness.  Virginia Murphy borrowed a small fortune to attend law school and pursue her dream of becoming a public defender. Now the Florida resident is among an expanding breed of American borrower: those who owe at least $100,000 in student debt but have no expectation of paying it back. Ms. Murphy pays just $330 a month—less than the interest on her $256,000 balance—under a federal income-based repayment program that has become one of the nation’s fastest-growing entitlements. She plans to use another federal program to have her balance forgiven in about seven years, a sum set to swell by then to $300,000.

A ‘death cross’ in Apple’s stock is coming - (www.marketwatch.com)  One bearish chart for Apple Inc.’s stock doesn’t a bear market make…but how about four scary-looking charts? Apple shares AAPL, -2.35%  have stabilized just above multi-month lows, but this slideshow of charts warns that not only should investors be wary of buying the stock, but that a further selloff into bear-market territory could be right around the corner. First is an impending bearish “death cross” pattern, in which the 50-day moving average crosses below the 200-day moving average. This pattern is seen by many as marking the spot that a shorter-term decline graduates into a longer-term downtrend. While the validity of the “death cross” has been widely debated, the last time one appeared, just as the stock was pulling back from record highs, the stock fell another 27% in four months. Based on the current trajectories of Apple’s 50-day and 200-day moving averages, a “death cross” should be confirmed in a little over a week, or at least by the end of the month.

Oil Cash Slump Triggers New Risks at World’s Biggest Wealth Fund - (www.bloomberg.com) The sudden slowdown in capital flows into the world's biggest sovereign wealth fund will add to risks and make it more costly to adjust its strategy, its chief executive officer said. As crude has plunged below $50 a barrel, Norway's fund has seen a precipitous drop in cash injections from the government. It received just 12 billion kroner ($1.4 billion) in the second quarter, compared with an average of 60 billion kroner over the past 10 years. ``We still have a net positive inflow, although it's very small these days,'' Yngve Slyngstad, head of the fund, said in an interview in Oslo on Wednesday. While it won't immediately change its strategy, the fund won't have ``the same amount of cash to reinvest,'' he said. 



Fed Officials in July Saw Rate Rise Conditions Approaching - (www.bloomberg.com)
Emerging-Market Losses Spread as Vietnam to Kazakhstan Devalue - (www.bloomberg.com)
Chinese slowdown sends ripples across Asian banks - (www.reuters.com)
Emerging Currencies Come Unstuck as China, Russia Fallout Grows - (www.bloomberg.com)
Turkey Lira Drops on Security Concern After Istanbul Explosion - (www.bloomberg.com)

Europe Stocks Fall as Miners, Auto Shares Retreat on China Fear - (www.bloomberg.com)
Chinese stocks go on wild ride as economic gloom deepens - (www.reuters.com)
PBOC Opens MLF Liquidity Tap Again as Yuan Defense Drains Funds - (www.bloomberg.com)
Why Fed minutes could be market mover - (www.cnbc.com)

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