Commentaries
From FXPedia
List of FXCommentaries
Pipeline Fire Underscores Vulnerability of Russian Oil Supply
August 8th, 2008
- Even though it only represents about 1% of the planet’s daily oil usage, a fire at the BTC pipeline transporting crude from Azerbaijan to Turkey was cited as the reason oil jumped nearly a buck and a half on Thursday to top out at just over $120 a barrel. Kurdish rebels operating in northern Turkey immediately claimed responsibility but officials said it was too early to confirm that the fire was the result of sabotage and not simply a technical failure. more >
July 24th, 2008
- It is unlikely that an increase to the Federal Funds Rate will be announced at the next FOMC meeting on August 5th, but if the Fed decides to hold the line at 2% as expected, this will mark two sessions in a row where the rate was left unchanged. more >
July 15th, 2008
- When I was young, I used to spend a couple of weeks every summer at my Grandparent’s farm. In one of the buildings I remember a small sign that read simply, “Loose Lips, Sinks Ships” and I was always confused as to its meaning more >
July 7th, 2008
- December 2001 marked an important point in China’s economic revolution – on this date, after discussions spanning nearly two decades, China became a member of the World Trade Organization (WTO). By finally coming to terms with the other member nations, China signaled that it was officially committing to its policy of economic reform within the framework developed and mandated by the Western economic powers. more >
CFTC Moves to Close the London Loop
June 20, 2008
- The Commodities and Futures Trading Commission (CFTC) recently released a statement that it would require foreign exchanges dealing in U.S. oil futures to limit the number of contracts that could be held by an individual trader or firm. This is clearly an attempt to protect consumers reeling from what CFTC Commissioner Bart Chilton described earlier in June as “unusual price movements” in oil futures and other commodities. more >
Oil and Interest Rate Uncertainty Makes for an Interesting Couple of Weeks
June 16, 2008
- The next two weeks promise to be interesting on a couple of fronts. First off, oil prices may – and I repeat – may be headed for a holding pattern until a few things play themselves out. Don’t get too excited as this may be nothing more than a bit of a price hiccup as the world grudgingly accepts that we will not likely again see oil under $100 a barrel. more >
May 9, 2008
- Despite gasoline and other refined petroleum products reaching prices on par with the fallout of Hurricane Katrina in the fall of 2005, profit margins for the major refineries are well below historical levels more >
April 21, 2008
- It is hard to imagine any topic occupying the minds of investors and financial professionals to a greater extent these days than the price of oil… well, maybe the price of gold…oh, and the credit problems in the financial markets. OK – one of the items occupying the minds of investors and financial professionals these days, is the price of oil. more >
Who Will Insure the Bond Insurers?
February 6, 2008
- It all started with the mortgage lenders accepting billions of dollars of new mortgages from borrowers with questionable credit ratings more >
Where is the PPT When You Need It?
January 21, 2008
- Urban myth or super-secret government agency pulling the strings behind the market? Rumors of the mysteriously-named Plunge Protection Team (PPT) persist more >
Perfect Storm for the "S" Word
December 19, 2007
- Stagflation. There, I’ve said it – the economic malaise that most economists and all governments are too timid to mention by name. more >
December 13, 2007
- The Federal Reserve announced yesterday the creation of the new Term Auction Facility – or TAF – designed specifically to inject funds into the struggling U.S. commercial banking system still suffering subprime mortgage-related credit problems. While some have dismissed the new initiative as just another form of the Fed’s discount window lending facility, others see it as a way for cash-starved banks to build up much-needed reserves without taking on the stigma associated with the discount window program. More >
November 22, 2007
- For traders active in the forex markets, 2007 has been a fascinating year and 2008 promises to be just as exciting. Everyone has been caught up in the record retreat of the U.S. dollar against the major currencies, but it may be the Canadian dollar that has had the most interesting story lately. More >
Bank of England and Northern Rock Bank
November 15, 2007
- The subprime mortgage problems emanating from the U.S. impacted the U.K. economy in a high-profile manner in the fall of 2007. The Northern Rock Bank had invested heavily in Collateralized Debt Obligation (CDOs) instruments containing high percentages of questionable mortgages issued by U.S. lenders. As the number of mortgage defaults grew and the recognition of the scope of the problem became known, holders of these CDOs were finding it increasingly difficult to sell their stakes in the securities. More >
October 24, 2007
- It is said that you can tell a great deal about a person by how they handle themselves in times of crisis. For the U.S. economy, the recent subprime mortgage meltdown – which has dominated the news for much of the past eighteen months - can certainly be categorized a financial crisis. Ben Bernanke was no economic neophyte when he assumed the Chairmanship of the U.S. Federal Reserve Board of Governors on February 1, 2006, but even he must have had second thoughts as the full impact of the subprime mortgage fallout started to emerge around the time he assumed the top spot at the Fed. More >
October 22, 2007
- Much of the economic news regarding the U.S. has been centered around the subprime mortgage collapse and the effect this is having on not just the U.S. economy, but other countries as well. In the U.S., several high-profile lending institutions have failed and the Bank of England recently stepped in to prop up the Northern Rock Bank when the bank found itself with insufficient liquidity as investors started to withdraw savings en masse. Northern Rock was unable to borrow short-term funds as institutional lenders felt that the bank was overexposed in the subprime market, making them too great a risk in which to invest. More >
