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How stocks react to the macroeconomy

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Mohamed El-Erian has the best explanation of what happened in the markets yesterday. First and foremost, there were ?technical factors?. This doesn?t mean lines on charts and head-and-shoulders patterns and similar astrological nonsense, but rather the dynamics of where investors? money was being held and the amount that the market would fall given a modest downward nudge. Sometimes that number is tiny, but it can fluctuate a lot, and yesterday it just happened to be huge.

Insight: Jaded traders ask "What, another crisis?"

Traders work on the floor of the New York Stock Exchange
When Charles Berry started his career as a bonds trader in 1993, he used to draw "point and figure" charts on pieces of paper. He checked his old charts recently to remind himself how calm markets were in those days. Back then, it took three months for a price to move 200 ticks -- the measure traders use to show changes in futures or currency markets. Now the market moves 400 ticks in a week.
At Issue: U.S. Job Market

U.S. Economy Added 117,000 Jobs in July: Better Than Expected

The U.S. economy unexpectedly added 117,000 jobs in July and the unemployment rate dipped to 9.1 percent, the U.S. Labor Department announced Thursday. Equally significant, the private sector added 154,000 jobs. The report was a pleasant surprise, but the nation is still in a deep hole job-wise -- short about 14 million jobs.
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Time to explore post-prohibition model by decriminalizing drugs

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Indiana state lawmakers, who are analyzing the implications of amending its drug laws to decriminalize marijuana, were told by a panel of experts that the prohibition of marijuana in U.S. is a failed model and Indiana stands a chance to benefit from decriminalizing marijuana.

Is Madeleine McCann in India? The Confusing Answer

Madeleine McCann, the British girl who has been missing for four years, was reportedly spotted in the northern Indian town of Leh. However, details of the spotting are unclear and the McCann family is not optimistic.
International Monetary Fund (IMF) Managing Director Christine Lagarde

IMF chief urges U.S. to immediately resolve debt spat

IMF chief Christine Lagarde on Tuesday urged the United States to quickly resolve a political stalemate over raising the debt ceiling, warning that failure to reach an agreement would have serious consequences for the world economy.
A protester waves a Greek flag during a rally against austerity economic measures and corruption in Athens

Moody's warns Greek default almost certain

Moody's cut Greece's credit rating further into junk territory on Monday and said it was almost certain to slap a default tag on its debt as a result of a new EU rescue package.
Factory in Japan

Elusive Rebound Better Come Soon

American consumers, faced with grim job prospects and the looming threat of a national debt default, are in no position to support the global economy with a new wave of spending.
Standard & Poor's building

Ratings agencies rattle cages in U.S., Europe

The credit ratings agencies are again angering governments, but this time they are taking on the big fish of the world economy. From Washington to Brussels, Moody's, Standard & Poor's and Fitch have added to the intense pressure on governments trying to deal with crushing sovereign debt.

Gold Price Set to Zoom to Higher Records on Possible Dollar Sell-Off, EU Soverign Crisis

If the Fed wades further into muddy stimulus waters, that will set the stage for a certain gold boom in the short to medium term. Historically, a dollar sell-off has been the biggest force behind a gold boom. If the Fed takes recourse to another round of easing in pursuit of its goal of propping up job creation and real growth, it will inadvertently cause a dollar sell-off and trigger, in turn, a gold super rally.
Five-tael (6.65 ounces or 190 grams) gold bars are seen at a jewellery store in Hong Kong in this April 21, 2011 illustration photo.

Another Gold Boom in Sight: Chinese Inflation, Dollar Sell-off and Sovereign Debt Crisis Set Perfect Stage

The setting is perfect for another gold boom cycle to kick in, perhaps pushing the yellow metal into a super cycle. There are several factors aiding gold's further push into higher price records, greater investment worth and long-term reign as a de facto currency. There are all sorts of classic factors supporting gold all the way, like the demand from China and India bursting at seams, continued worries for the US dollar and the worrisome prospect of sovereign default in some European countri...
Greece: Bond Vigilante Target

'Bond Vigilantes' Could Trigger U.S. Sovereign Debt Crisis

Greece, tiny Mediterranean nation plagued by debt problems, still bears watching by U.S. investors/readers. The reason? Bond vigilantes who have driven up Greece's interest rates could do the same in the United States, if Washington doesn't eliminate its budget deficit.
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China's Jiang Zemin Rumored Brain-Dead: Military Hospital Tightens Guard [VIDEO]

On July 1, Jiang was absent at an important event in Beijing commemorating the 90th anniversary of China's Communist Party.A few days later, an important figure was urgently hospitalized into 301 Military Hospital located in Beijing, China. The figure is reportedly the former Chinese leader Jiang Zemin, who was rumored to be in sickness since his last public appearance in Jiangsu on May 14th.

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