Tuesday, November 24, 2015

Some Toosday noos

Here's some reading and stuff to keep you occupied:

New Deal Demoncrat - one long-term indicator changes to yellow. He's worried about mortgage rates. Though to be fair, if rates are still very low compared to the past 50 years, and there's a global savings glut that will keep mortgage rates pinned for decades, then how likely is it really that there is anything to worry about?

FT Alphaville - David Keohane laughs at Izzy Kamizzy. Another story about India's fantastic gold monetization scheme and its one pound take. Hey, why wouldn't you want to earn 2% on gold? Maybe because you're being paid in rupees, and gold is the perfect hedge against rupee currency risk? Anyone living in India is already long rupees by virtue of their location: why would you sell a hedge and go double-long rupees?

Jeffrey Kleintop - India is the fastest growing economy in the world. Unfortunately, with a BA in Business Admin, an MBA and a CFA, he obviously never learned about long-term determinants of productivity, else he would flag in his article that India has a massive infrastructure deficit that is proving impossible to solve. Hey, Jeffy! How does an economy manage to continue growing when it's impossible to move goods?

Mining.com - hedge funds can't exit gold market fast enough. Yay! They dumped 368 tons of gold in the past three weeks and drove the price all the way down to $1065! Go shorter gold, guys! Do it! Dump another 1000 tons! After all, you'll never have to buy it back!

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