The Financial Times – Top ECB policy maker warns on US taper fallout The fallout from the US Federal Reserve reducing its massive stimulus programme might exceed even that of 1994, a senior European Central Bank policy maker has warned, as he stressed the importance of clear communication from central bankers. Global financial markets have… Continue reading Taper Fallout
The Financial Times – Markets: The debt penalty Wall Street bond-trading desks are shrinking as banks hold more capital. The liquidity they provided may be missed Lack of liquidity in the secondary bond market has led to an unusual development in the financial industry – an attempt at co-operation. Last year the buyside investors who… Continue reading Where Are The Bond Traders?
The Financial Times – Robin Harding: America’s economic growth is built on sand Washington could do much to place the recovery on firmer foundations, says Robin Harding In 2009, Mr Obama was speaking for a consensus about how the US should rebalance. The share of exports and investment should rise while consumption, imports and housing… Continue reading The U.S. Economy
The Wall Street Journal – Volcker Rule to Curb Bank Trading Proves Hard to Write The Volcker rule, a centerpiece of the sweeping overhaul of financial regulation known as Dodd-Frank, is an attempt to protect the financial system from risk. It is simple in concept. Banks are prohibited from making investment bets with their own… Continue reading Why The Volker Rule Is So Difficult
Zero Hedge – This Is What Happens When The Bureau Of Labor Statistics Is Caught In A Lie What happened next is precisely as we expected: when last Friday’s jobs report came out, the first thing that stood out, aside from the miss in the lead, August number (which came at 169K), is that the… Continue reading Made Up Jobs Numbers
The Wall Street Journal – Greece May Need Two More Aid Packages Says ECB’s Coene Greece’s official lenders could need to step in twice more to help the country as it very slowly recovers from its economic crisis, Luc Coene, the president of Belgium’s National Bank, said in a radio interview Wednesday morning. Asked whether… Continue reading Greece May Need More Help
Bloomberg.com – Gundlach Says Fed Is Mistaken in How It’s Ending Easing Jeffrey Gundlach, manager of the $36 billion DoubleLine Total Return Bond Fund, said the U.S. Federal Reserve is making a “big mistake” in the way it ends its unprecedented asset-purchase program. “We thought the Fed wouldn’t walk away from QE,” or quantitative easing,… Continue reading Gundlach Speaks About The Federal Reserve
The Wall Street Journal – Once-Voracious Zell Puts Less on Real-Estate Plate Mr. Zell has done relatively little buying since the market crashed five years ago, viewing prices as remaining too high, even as rivals such as Blackstone Group and Carlyle Group CG +0.32% made big acquisitions. Now that U.S. housing and property markets are… Continue reading Zell On The Sidelines
None Today
Comment As we noted yesterday, Jim Bianco was on Reuters TV last week discussing a variety of topics. In the clip above, Jim discussed the situation in Syria and whether or not it affects the Federal Reserve’s thinking. To view the interview, click on the picture above. The transcript of this portion of the interview… Continue reading Syria & The Federal Reserve
The Telegraph –Ambrose Evans-Pritchard:The IMF knows that the Fed is playing with fire in emerging markets Listen to the IMF’s Christine Lagarde very carefully. While the US Federal Reserve has as a parochial “closed economy” view – and made a series of grave blunders over the last six years as a result – her job… Continue reading What Tapering Means To The Emerging Markets
The Wall Street Journal – John B. Taylor: The Weak Recovery Explains Rising Inequality, Not Vice Versa Obama blames tax cuts that began under Reagan for today’s slow growth. The data don’t back him up. Last year at this time a debate raged about whether economic growth and job creation has been abnormally slow compared… Continue reading Workplace Inequality