Thursday, January 2, 2014

Some news for the evening

Here's a bit of stuff for you:

Bonddad - New Deal Democrat vs Calculated Risk: deathmatch! They have totally divergent opinions about housing in 2014. Personally, I'd take Bill McBride's side of the bet. The US economy certainly can handle 1% higher mortgage rates; in fact, rates rising off the zero bound might be a tremendous boost to the US economy, as Rosenberg has noted.

FT Alphaville - mountain of maturing loans in China. If there is a severe market correction in 2014, it'll be because of this. After which you'd expect US manufacturing to take off, as it all gets reshored.

Toronto Star - end of the gold rush. Quotes:
Investors dumped as much gold from exchange-traded products in 2013 as had been purchased in the previous three years, according to data compiled by Bloomberg. They sold 789.3 metric tons since the start of January, pushing holdings to the lowest level since March 2010 and wiping $67.5 billion from the value of the funds.
So the people who drove the gold bubble have basically all sold by now, eh?
Speculation now is that a U.S. recovery will curb demand for the metal as a safety net. “The economy is picking up and everyone is very bullish on the U.S. dollar, which is not a great backdrop for gold,” adds Hartnett.
Let me know when Indian and Chinese people start holding US dollars instead of gold.
The good news for the industry is that metals-hungry China still has a voracious appetite for gold.

China’s net imports of gold from Hong Kong reached 129.9 tons in October, the second highest total on record, Bloomberg reports.

Chinese consumer demand for the metal rose 30 per cent in the 12 months through September, according to the World Gold Council. That puts it on track to overtake the world’s top consumer, India, where purchases gained at a slower rate of 24 per cent amid government import restrictions.
Ah... I see. Carry on.

Yahoo Finacne - Indian iron ore companies throw in the towel. And this is a country that's supposed to be able to start up a gold mining industry? Chidambaram and friends really are well-insulated from the coldness of reality, no?

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