Sunder’s List: QE Gift To Wall Street

Roundup: S&P -0.24%, Dow -0.21%, Nasdaq flat, London -0.02%, Germany -0.34%, France -0.61%. At pixel: Nikkei -0.16%, Hang Seng -1.11%

Finance Ministry is going to crush all currency punters out there. The rupee will stabilize, prices will stop rising, the economy will start clocking in double digit growth and the Congress will be voted back to power… (ET)

While we worry about inflation and fret about onion and potato prices, developing economies are facing deflation. U.S. inflation is at 1.2%, well below its 2% target. Euro-zone inflation is running at 0.7% – the ECB aims at near but just below 2%. Prices in the U.K. have started to move back as well. (WSJ)

Commodity update:

  • Iron ore is extending a bull market on record sales to China. Stockpiles in China were 74.4 million tons on Nov. 8, from 85.1 million tons a year earlier. Steel futures in Shanghai advanced 8.5% from a nine-month low in June. (Bloomberg)
  • Gold miners’ hedging activities might end up pushing gold prices over the cliff. The more producers hedge into thin forward demand, the more likely the curve is to backwardate. (FT) [stockquote]GOLDBEES[/stockquote]
  • The platinum market is heading this year for the biggest deficit since 1999 on the back of record demand for ETFs. (FT)

On average, private equity investors may just break even, net of management fees, carry, risk, and costs of illiquidity. (NBER)

A former Federal Reserve official responsible for executing the centerpiece program of the Fed’s first plunge into the bond-buying experiment known as quantitative easing, says he is sorry. “The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.” (WSJ)

Good luck!

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