The Economist – Buttonwood: Neither liquid nor solid Where the next financial crisis may appear Repos are the oil that greases the wheels of the financial system, allowing financial institutions to manage their cash needs. Global repo turnover is estimated at $1.6 trillion every day. In recent weeks, however, there has been a sudden surge… Continue reading More On Fails
<Click on chart for larger image> Reuters – Japan economics minister warns of premature QE exit, sees room for more easing Japanese Economics Minister Akira Amari warned that it would be premature for the Bank of Japan to consider an exit strategy from its massive stimulus program, voicing hope instead for further monetary easing if… Continue reading The BoJ Needs More QE
ECB – Central Bank Macroeconomic Forecasting During The Global Financial Crisis The European Central Bank and Federal Reserve Bank of New York Experiences Overall, we reach the following conclusions. First, macroeconomic forecasting during the global financial crisis was a challenging task faced by the Federal Reserve Bank of New York and the European Central Bank.… Continue reading Should Central Banks Forecasts Use Financial Markets?
Reuters – Exclusive: Carl Icahn says ‘time to be cautious’ on U.S. stocks Billionaire activist investor Carl Icahn said on Thursday that it is time for U.S. stock market investors to tread carefully after the run-up on Wall Street. “In my mind, it is time to be cautious about the U.S. stock markets,” Icahn said… Continue reading Icahn Turns Cautious
The Wall Street Journal – Slowing Customer Traffic Worries U.S. Retailers Warm Weather Hasn’t Dispelled the Doldrums; Container Store Cites a ‘Funk’ Results at retailers haven’t been uniformly bad this spring. But there are enough negatives to shake earlier hopes that shoppers would whip out their wallets and resume shopping after the long, tough winter.… Continue reading Retailing Struggles, Or Not?
The Washington Post – Poor man’s polar vortex to make shocking summer return in eastern U.S. next week Call it the ghost of the polar vortex, the polar vortex sequel, or the polar vortex’s revenge. Meteorological purists may tell you it’s not a polar vortex at all. However you choose to refer to the looming… Continue reading The Return Of The Polar Vortex?
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Comment Today at 9 AM CT (10:00 AM ET, 7:00 AM PT, and 15:00 BST), Bianco Research, in conjunction with Arbor Research & Trading, will be hosting a webcast/teleconference moderated by Jim Bianco. In recent months the economy and markets have been giving mixed signals. While GDP and earnings have been poor, other metrics such… Continue reading Mixed Signals: The Economy And The Markets
The Wall Street Journal – Jon Hilsenrath: Fed Sets October End for Bond Buying The Fed first started bond buying during the heat of the financial crisis in early 2009. It expanded its efforts in September 2012. Since the last expansion, its total holdings of bonds, loans and other assets have grown from $2.8 trillion… Continue reading The FOMC: So Much For Watching The Data
The Washington Post – Jeremy Stein: The exclusive exit interview Q: Why is that so important — that the facility be rate-based versus quantity based? A: I think that makes the implementation a little bit easier. But I think what really matters in the end is just how much financing you do this way, with… Continue reading Jeremy Stein Speaks
The Wall Street Journal – European Markets Tumble on Portuguese Bank Woes Shares Fall and Bond Yields Rise on Concerns About Financial Health of Country’s Biggest Lender Worries over the financial health of a major Portuguese lender sent a wave of panic though the whole continent’s markets Thursday, drubbing shares heavily in southern Europe and… Continue reading The PIIGS Are Back!
Bloomberg.com – Student Debt: The Rising U.S. Burden In terms of American exceptionalism, student loan debt stands out. No other country imposes the kind of costs on college and university students that the U.S. does, and nowhere else do loans cover so much of those costs. Experts think that the $1.2 trillion in outstanding education… Continue reading Student Debt