<Click on chart for larger image> Real Time Economics (WSJ Blog) – Ahead of April Fed Meeting, Big Banks Expected First Rate Rise in September Wall Street’s biggest banks told the Federal Reserve recently they were projecting the central bank would start raising short-term interest rates in September. According to a survey of so-called primary… Continue reading Timing The First Rate Hike
<Click on chart for larger image> Real Clear Markets – The Fate of the Fed’s Exit Strategy Is In Foreign Hands …In short, QE killed the federal funds market which had already been deeply wounded by the crisis. Along with any change in structure there is likely to be a shift in character. There are… Continue reading The Federal Reserve’s Liquidity Problem And The Exit Strategy
<Click on chart for larger image> <Click on chart for larger image> The Federal Reserve Bank Of New York – Household Debt and Credit Report The Federal Reserve Bank of New York’s Household Debt and Credit Report provides a quarterly snapshot of household trends in borrowing and indebtedness, including data about mortgages, student loans, credit… Continue reading Household Debt
Bloomberg Business – Yellen Haunted by Taper Tantrum as Fed Rate Rise Draws Closer Janet Yellen is haunted by the taper tantrum as the Federal Reserve lays the groundwork for its first interest-rate increase in almost a decade. Chair Yellen and her colleagues are fretting that bond yields near record lows could surge once the… Continue reading What Scares Yellen
Bloomberg View – A Backdoor Way to End the Fed There is, however, another way to neutralize the power of the Fed that would be far easier politically. This is the notion of passing a law to tie the Fed’s interest-rate setting policy to a simple arithmetic rule. If that were done, most of the… Continue reading The Taylor Rule vs The Federal Reserve
<Click on chart for larger image> The Wall Street Journal – It’s Dead Around Here: Stock Trading Slows to Lowest Volume in Months Through Wednesday, an average of 5.76 billion shares have changed hands. On average, 6.55 billion shares have traded hands each week so far this year. Stocks also are in no rush to… Continue reading Low Volume
The Federal Reserve Bank Of New York – Why Are Interest Rates So Low? In a recent series of blog posts, the former Chairman of the Federal Reserve System, Ben Bernanke, has asked the question: “Why are interest rates so low?” (See part 1, part 2, and part 3.) He refers, of course, to the… Continue reading Why Interest Rates Are So Low
The Financial Times – Gillian Tett: Credit derivatives deserve a revival but only if financiers grow up Investors will need all the help — or instruments — they can find to hedge risks in the next year This month, Wall Street is back with a new lobbying campaign. But this latest battle is not about… Continue reading More On CDS
The Wall Street Journal – Fed Proposes Relaxing Rules Affecting Municipal Bonds Large U.S. banks will be able use some municipal bonds to meet new postcrisis rules aimed at ensuring they have enough cash during a financial-market meltdown under relaxed rules proposed by the Federal Reserve. The long-awaited move reflects a change of heart by… Continue reading Deregulation
Reuters.com – Greece sees reforms deal with lenders in next 10 days Greece expects to reach a cash-for-reforms deal with its creditors in the next 10 days and aims to meet all its payments in June, the government’s spokesman said on Friday, after the prime minister met with EU leaders. German Chancellor Angela Merkel and… Continue reading Your Daily Dose Of Greece
CNN Money – We’re on the verge of a crisis, bears warn After nearly six years of a surging U.S. stock market, investors are worried about how much longer it will last. Suddenly, the views of the negative Nancys are getting a lot of attention. The bears build their case that a crisis is near… Continue reading What Scares The Bears
(He sold his shares on April 12, 1976)