Liberty Street Economics (NY Fed Blog) – Gates, Fees, and Preemptive Runs We prove these points more formally in a recent Federal Reserve Bank of New York staff report. There, we use a traditional model of financial intermediation to demonstrate the basic proposition discussed in this post: Giving an FI [Financial Intermediary] the option to… Continue reading More On Money Market Gates
Vox – Americans are taking fewer vacations than they used to Nine million Americans took a week off in July 1976, the peak month each year for summer travel. Yet in July 2014, just seven million did. Keeping in mind that 60 million more Americans have jobs today than in 1976, that adds up to… Continue reading Kiss Your Vacation Goodbye
Business Insider – CHANOS: ‘Corporate America Is Not Growing’ Add Jim Chanos’ to the number of voices worried that American companies are running out of gas and in need of real consumer demand to create revenue. In an interview with Bloomberg’s Masters in Business, hosted by Barry Ritholtz, Chanos explained how corporate buybacks were less… Continue reading Jim Chanos Sees No Corporate Growth
CNBC – Blow to banks’ living wills over Federal Reserve’s lending window Global banks can no longer assume continuing access to the Federal Reserve’s discount lending window as an element of their living wills, people familiar with the process have warned. US regulators set out the specific guidance in confidential letters on August 5 detailing… Continue reading Banks’ Living Wills
The Big Picture A transcript of the August 14, 2014 conference call. Audio Link of Conference Call Handout (also shown below) [hana-flv-player video=”https://www.biancoresearch.com/bianco/SubscriberArea/081414.flv” width=”600″ height=”495″ description=”” player=”3″ autoload=”false” autoplay=”false” loop=”false” autorewind=”true” splashimage=”https://www.biancoresearch.com/bianco/wp-content/themes/twentyten/images/splash.jpg” /] <Click above to view webcast> [pageview class=”PDFViewer” url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=199″] Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/081414.mp3|titles=Conference Call ]
Zacks.com – Q2 Earnings Success – Will It Stick Around? The earnings picture is notably reassuring, with Q2 earnings season bringing in a ramped up growth pace. The pace of negative estimate revisions for the current and coming quarters, which has been a recurring theme quarter after quarter for almost two years, has been unusually… Continue reading An Earnings Update
Real Time Economics (WSJ Blog) – How Much U.S. Debt Does China Hold? The U.S. Isn’t Sure China’s buying of U.S. debt is so murky, even the U.S. doesn’t know exactly how much Beijing owns. Each month, the Treasury Department releases its Treasury International Capital report detailing data on capital flows across U.S. borders. That… Continue reading A Look At Chinese Holdings Of U.S. Treasuries
The Wall Street Journal – Fixing Wall Street’s Plumbing With a New Fed Tool Back in 2008, the collapse of so-called repo markets—where cash-rich investors make overnight loans to financial firms and receive securities as collateral—was a signature event in the financial crisis. Now, the market is under pressure and contracting again—this time due to… Continue reading The Repo Market
The Wall Street Journal – Jon Hilsenrath: Federal Reserve Bets Rate Rise Can Wait In a recent Wall Street Journal survey, 30 private economists said they feared the Federal Reserve would wait too long before raising short-term interest rates, while only three said they feared the Fed would move too early. Will the Fed fall… Continue reading A Jackson Hole Preview
The Financial Times – Scott Minerd: Don’t fight the US Treasury bond rally The consensus among market watchers last September was that, with US interest rates so low and the US Federal Reserve about to withdraw stimulus, interest rates would trend higher. I took a different view, writing in a commentary that “10-year rates may… Continue reading An Argument For Bond Bullishness
The Financial Times – US banks plan ahead for UK exit from EU Wall Street banks are drawing up preliminary plans to move some London-based activities to Ireland to address concerns that the UK is drifting apart from the EU. People familiar with Bank of America, Citigroup and Morgan Stanley told the Financial Times that… Continue reading U.S. Banks Looking For A New Home In Europe