Project Syndicate – Lehman’s Morbid Legacy As interesting as these contributions will be, I hope that we will also see another genre: analyses of the previously unthinkable outcomes that have become reality – with profound implications for current and future generations – and that our systems of governance have yet to address properly. With this… Continue reading Remembering Lehman
Reuters – Obama may need Republican help if picks Summers for Fed President Barack Obama will likely have to contend with Democratic defections and bring some Republicans on board to support Lawrence Summers if he chooses the controversial former Treasury secretary as the next chairman of the Federal Reserve. Summers, one of Obama’s chief economic… Continue reading Trouble On The Road To A Summers Nomination?
Comment In the interview above (from yesterday), Vince Reinhart, chief economist at Morgan Stanley, said: The Fed is serious when it says it is data dependent. The data that really matters, what they have used to gear the path for the QE is employment. The data point that really matters between now and next FOMC… Continue reading Is Tapering All About August Payrolls Released On September 6?
The New York Times – Rosy Earnings Forecasts, at Least at First IS the glass half full or half empty? For several thousand analysts who make a living assessing the value of publicly traded stocks, the answer depends on which week it happens to be. That’s what a study of the Standard & Poor’s 500… Continue reading When Should We Pay Attention To Earnings Estimates?
The Wall Street Journal – John H. Cochrane: The Danger of an All-Powerful Federal Reserve he U.S. experienced a financial crisis just a few years ago. Doesn’t the country need the Fed to stop another one? Yes, but not this way. Instead, we need a robust financial system that can tolerate “bubbles” without causing “systemic”… Continue reading Fear The Federal Reserve!
CNBC – Michael Ivanovitch: Lessons learned from the Fed’s $745 billion mistake Have the Fed’s massive interventions to keep down long-term interest rates failed to neutralize expectations driving the bond market behavior? The answer from some of the Fed’s leaders would be an emphatic “no.” They believe that their “operation twist” (buying long-term bonds by… Continue reading More On The Federal Reserve
MoneyBeat (WSJ Blog) – A Painful ‘Recoupling’ for Markets So much for “decoupling.” For the past month or so, currencies and markets from emerging countries ranging from Brazil to India have been hammered by events happening thousands of miles away. The expectations of an imminent end to the Federal Reserve’s unreserved monetary stimulus has prompted… Continue reading Emerging Markets And The Federal Reserve
CNBC – Jeff Cox: The 5% recovery: Why most are still in recession How strong the economic recovery has been since the Great Recession ended in 2009 probably depends on viewpoint. For those in the top 5 percent, the recovery has been pretty good. As for the other 95 percent, well … maybe not so… Continue reading Why It Still Feels Like A Recession
Project Syndicate – Stephen S. Roach: The Global QE Exit Crisis The global economy could be in the early stages of another crisis. Once again, the US Federal Reserve is in the eye of the storm. As the Fed attempts to exit from so-called quantitative easing (QE) – its unprecedented policy of massive purchases of… Continue reading Roach On How To Exit
Real Time Economics (WSJ Blog) – Stuck Working Part-Time? Blame the Economy More than four years after the recession ended, nearly a fifth of American workers are part-timers, well above normal levels. More than 8 million people are working part-time because they can’t find full-time jobs. That’s given rise to fears of deep, structural shifts… Continue reading Part-Time Jobs
Deal Blook (NYT Blog) – Andrew Ross Sorkin: Five Years After TARP, Misgivings on Bonuses “There was such a total lack of awareness from the firms that paid big bonuses during this extraordinary time.” That is what Henry M. Paulson Jr., former Treasury secretary, said last week. We were discussing the 2008 financial crisis in… Continue reading TARP, Remember That?