Or select individually:
- In A Crisis, Its Much Worse To Be An American Worker, Than A Japanese One
- In Case You Didn’t realise How Much Gold Investors Love Bernanke
- The Dollar Is Collapsing? Well It’s Beating The Stock Market
- Is This The Stock Chart Of The Future?
- Where Every Major Country Is In The Global Debt Cycle
The US economy is frequently compared to Japan in the early days of its lost decade, but here's one way it's way different: the US is a much worse place to be a worker.
As this chart from Deutsche Bank nicely illustrates, US unemployment took off like a rocket when the crisis hit. In Japan, it barely budged, just gradually getting slightly worse over the years.
The price of gold spiked dramatically right around 2:15 PM ET today, as the Fed released its latest statement on the strength of the economy.
The FOMC mentioned the word quantitative easing, and left the door open for future asset purchases by the central bank.
The result was a rush out of the dollar, and into a myriad of other assets. But gold's mov was the most dramatic.
Thanks to the prospect of more quantitative easing (money printing) from the Federal Reserve, and the Eurozone's apparent stabilisation, the U.S. dollar has become a global whipping boy once again. Gold and many currencies such as the euro are soaring against it.
Yet despite all the dollar-bashing, the dollar hasn't actually done that badly year-to-date.
The Dollar Index, which represents the dollar's value vs. a basket of world currencies, was up 3.3% for the year as of yesterday according to Bespoke Investment Group, beating the stock market's S&P 500 index, as shown below. This is pretty impressive given that the Federal Reserve's easy-money policies place downward pressure on the dollar via low interest rates and growing money supply, while providing upward pressure for stocks via low interest rates earned on cash or bonds.
A new way of looking at the trading day, based upon the discrepancies in times which volume spikes has been created and we think it's pretty cool (via Felix Salmon). The chart, designed by Proteus Financial per Felix Salmon's suggestion, has the trading day broken up by volume, rather than a traditional time scale.
So for example, where as the traditional chart -- shown via the blue line and using the axis at the top -- breaks the day up into 40-minute increments, the volume chart (in red) is broken up by increments that represent 10% of the day's trading volume.
With volume so high at the beginning and the end of the day, the chart smooths the movements of the market, compared to the traditional time based chart. Check out the axis for the time within each period.
Check out the chart (via Felix Salmon) (Time based in blue, Volume based in red).
Societe Generale has mapped out the world by each country's place in the global debt cycle.
The cycle starts with countries paying down debt, followed by growth with little debt, then a rapid increase in leverage, closing with the bubble bursting.
Every major developed country fits on a part of the chart.
Right now, the U.S. is starting over, paying down debt and a long way from the growth portions of the cycle. At the opposite end of the spectrum are Brazil and China, ramping up growth and increasing debt.
Might be a good graph to follow if you're someone who plays the markets by country.