Broker News

Some might say that the housing slump in the United States is over. Shocked? It's true but not for the common man. If you happen to be a millionaire with a bunch of houses ready for sale, the world is your oyster because you could be on the verge of getting a whole lot richer. According to the Associated Press, multimillion-dollar homes in Birmingham, Michigan, for example, are back on the market, and the bidding wars are fierce. The agency reports a 21% rise in sales last month from the previous year's numbers. And while the sun shines brightly on this side of the fence, related services and providers are also being positively impacted by the boost from consumers with disposable income. The local country club has dropped its discount offers, and the retail stores are bustling with activity.

The US Federal Reserve has taken quite a few bold steps over the last few years to restore balance to the country's economy. In keeping with this trend, its latest well-intentioned endeavor has become the subject of some debate, mostly about whether the move is justified or whether it's simply too little, too late. Under the engaging title of Operation Twist, which was originally trotted out in the 60s with modest results, the Fed has committed to selling off $400 billion worth of short-term Treasury debt. The proceeds from this transaction are then to be used to purchase long-term bonds by June of next year. The intention here is to drastically lower the cost of mortgages and loans to encourage consumer spending and borrowing, leading to a much-needed boost to the economy. Skeptics, however, remain critical of Operation Twist's ability to do better in the present than it has done in the past.

Despite the show of support from France and Germany, Greece is still the center of a great deal of speculation over its potential debt default and continued membership in the eurozone. Undoubtedly, some difficult decisions lie in store for the country at the core of the sovereign debt crisis in Europe. World Bank chief Robert Zoellick has criticized the situation as a new economic danger zone. Speaking at George Washington University, he said, "?Unless Europe, Japan, and the United States can also face up to responsibilities they will drag down not only themselves, but the global economy." He also pointed out ironically that these were the same entities that had lectured China about responsibility as a global stakeholder only to find themselves in need of taking their own medicine.

What's something that most people take for granted that it will always be there but which is actually finite and running out? If you answered oil, you'd be right; however, if you answered water, you'd also be right. Yes, that's right – welcome to the world of peak water. Here's what you need to know and how to profit from it:

While most of the world's developed nations continue to flounder in debt, an unlikely benefactor has stepped up to the plate with an unexplained offer of assistance. National Development and Reform Commission Vice Chairman Zhang Xiaoqiang told reporters that China is willing to buy bonds from countries struggling under the sovereign debt crisis, echoing the sentiments of Premier Wen Jiabao.

Long-time innovator and entrepreneur Steve Jobs recently stepped down as chief executive officer at Apple Inc., which he cofounded, after years of creating history with the company. Jobs had inspired the world by bouncing back from being fired from Apple in 1985 to go on to set up the hugely successful Pixar and ultimately get rehired as Apple Inc.'s chief executive officer in 1997. Today, the pressure of his career impacting his health has taken its toll, but his legendary status from pitting skill, wits, and determination against adversity is sure to live on.

What do September 11^th have to do with Lehman Brothers and what does any of this have to do with global finance and European economy? Let's take a quick look:

Earlier this month, UBS Investment Research released a report detailing the consequences of a "?Euro breakup" where one or more eurozone countries drop the common Euro. Although it may not have been obvious that the eurozone was even considering such a breakup in the first place, the report poses some interesting points. Since it appears to focus in parts on the consequence of a strong European country such as Germany dropping the Euro, some bloggers have speculated that the institute may have insider information that Germany is, in fact, considering such a move. The report does not confirm this but does state that a breakup would incur significant costs and is therefore not a probable scenario. Instead, UBS sees the Euro moving toward fiscal integration and finds that "?popular discussion of the breakup option considerably underestimates the consequences" of a breakup"”hence the report, which intends to set the record straight here. Some have suggested that a breakup would have a significantly negative impact on UBS and that this is the real motivation behind the focus of the report and its encouragement of moving toward fiscal integration as an alternative to breakup.