The CFTC's much debated new rule to increase margin requirements (decrease leverage) that registered FCMs are allowed to offer their clients is going into effect on October 18, 2010. Maximum leverage will now be 50:1 on majors and 20:1 on minors.

CFTC New Margin Requirement Rules continued

Germany, the most powerful economy in the EUR zone is enjoying the lower EUR while at the same time being able to dictate to other countries how to conduct their business. This was the whole point of the union, and it's working out just fine for those in power (i.e. Germany). Membership in the EU, or any other such union, is only beneficial to you if you are holding the reins. It is a form of colonization. This is not a new idea - just a new way of doing the same old thing.

Germany Dominates Europe continued

Markets were shocked into action earlier today as the Securities and Exchange Commission is suing Goldman Sachs over failing to disclose, as well as misrepresenting key facts related to a subprime mortgage derivative, just as the market was teettering on collapse.

Goldman Sachs Sued by SEC continued

As expected, new loans to consumers and businesses expanded at a much faster rate in January 2010 than in previous months (CNY1,390B vs. CNY380B in December 2009). With large consuming economies such as the US and Europe showing sluggish growth, and the near exponential rise in Chinese capacity over the past few years, credit expansion may be the last thing the Chinese economy needs - it will simply fuel further overcapacity.

Chinese Credit Expansion continued

Global markets have experienced some resurgence so far this week, as evidence is mounting with regards to an EU bail out of Greece. This is of course great in the short term and terrible in the long term. It would seem that most "advanced" economies have completely given up the fight and have allowed themselves to drown in debt.

EU to Bail Out Greece continued

The US economic recovery was called into serious question today as the number of Americans claiming unemployment benefits rose to 480,000 from a previous 472,000 (revised from 470,000) vs. a drop to 461,000 predicted by analysts. This does not appear to be in line with an economic recovery, although the market reaction was likely a little overdone.

Unemployment Claims Disappoint 04-02-2010 continued

Due to recent days' price action, USD/JPY seems to be in the process of completing an Inverse Head and Shoulders pattern, signalling a possible longer term reversal of the down trend.

Inverse Head and Shoulders in USDJPY 03-02-2010 continued