July 8, 2013

Doug Kass: Stock market warning of Bumpy ride

I (prematurely) cautioned in January-February (and in the ensuing months) that this market day would come -- a day in which the liquidity, so necessary to recover the world's economies from the Great Decession, would come to an end. Or, at the very least, I suggested that its ending would begin to be discounted well in advance of the triggering event.

I worried that a period lies ahead in which both stock and bond prices fall at the same time, breaking the correlation of the last few years.

July 2, 2013

Thousands of layoffs in refi departments in major banks

I will tell you that refinancings, which buoy cash flows, have rolled over dramatically. There have been thousands of layoffs in refi departments in major banks.

Will higher profit margins be maintained if rates start to head higher? Remember that lower rates were an important driver in pushing margins to record highs.