-Despite not saying much recently, I never stopped paying attention to the Yen. The chart (shown below) looks to be completing a head-and-shoulders formation. To be more specific, the left shoulder tracks from February to early April of this year, the head goes from early April to mid-June, and the right shoulder has been forming since then, and now appears to be closer to its conclusion than its inception. Incrementally, it has to break below 98, then 97, then 94.5 to confirm the move. If it does all of that, the target would be somewhere back in the mid-80s yen to the dollar. And that would not be according to the script for Abenomics – because as has been pointed out by several very smart folks (including Kyle Bass), the 2% inflation target will require an exchange rate closer to 120.
-An
article that delves into the recidivism prevalent in the government’s foreclosure prevention program. A highlight: “
The Home Affordable Modification Program (HAMP) has worked on 1.2 million mortgage modifications since it started four years ago. Of those, more than 306,000 borrowers have defaulted again on their loans, and another 88,000 are at risk as well.”
