CNBC – John Harwood: Obama source predicts Summers will be named Fed chief soon A source from Team Obama told CNBC that Larry Summers will likely be named chairman of the Federal Reserve in a few weeks though he is “still being vetted” so it might take a little longer. It’s largely come down to… Continue reading Here Comes Larry!
The Wall Street Journal – U.S. Treasury to Hit Debt Limit in Mid-October Latest Timeline Could Step Up Pressure on Congress The Treasury Department said it would hit its borrowing limit in mid-October and be unable to pay all of its bills soon after that time, narrowing the window the White House and Congress have… Continue reading Debt Limit Update, Now Mid-October
<Click on chart for larger image> Bloomberg.com – Multiples Grow at Fastest Pace Since Dot-Com Bubble Price gains of stocks in the Standard & Poor’s 500 Index (SPX) are outpacing profits by the fastest rate in 14 years as the bull market extends beyond the average length of rallies since Harry S. Truman was president. … Continue reading On Stock Market Valuation
The Wall Street Journal – Trader in J.P. Morgan ‘Whale’ Case Arrested Javier Martin-Artajo Detained in Madrid Spanish police arrested one of two former J.P. Morgan Chase & Co. traders charged with hiding losses on bad bets that cost the bank more than $6 billion, a spokesman for the National Police said. Javier Martin-Artajo, a… Continue reading JP Morgan Criminal Activity Update
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The Wall Street Journal – At Fed Conference, Everyone Knows How to Make an Exit Opinions Run From Be Clear to Go Slow to Why Now When it comes to the Federal Reserve’s easy-money policies, everyone here, it seems, has an exit strategy. The Fed should provide clearer guidance about its plans for unwinding its… Continue reading Timing The Taper
The New York Times – At a Fed Conference, Views Differ Sharply on Stimulus’s Effect There is still plenty of skepticism about the stimulus campaigns of the Federal Reserve and other central banks, and there is plenty of concern about the consequences. But for the first time in several years, there was also a general… Continue reading Gauging The Effectiveness Of QE
<Click on chart for larger image> MoneyBeat (WSJ Blog) – Investors Spooked; Outflows Spike Talk about a flight to safety. Investors yanked $12.3 billion out of U.S. equity funds last week, the biggest outflow in more than five years, according to Michael Hartnett, chief investment strategist at Bank of America Corp.’s Merrill Lynch. The outflow… Continue reading Equity Fund Outflows
FT Alphaville (blog) – (July 5, 2013) WTI and the taper effect As Philip Verleger noted last month, there’s good reason to suspect that cheap QE funding encouraged excess inventories to be accumulated — by reducing the financial cost of holding stocks at a time when there was little or no incentive to monetise stock,… Continue reading The Costs Of Transporting Crude Oil
<Click on chart for larger image> The Financial Times – Rewards await corporate America if it’s canny with cash The scale of the flow of cash out of US corporate coffers is not in doubt. According to JPMorgan calculations, the total paid out in the 12 months to July was the highest ever. According to… Continue reading Net Stock Issuance
The Wall Street Journal – Pipeline-Capacity Squeeze Reroutes Crude Oil More crude oil is moving around the U.S. on trucks, barges and trains than at any point since the government began keeping records in 1981, as the energy industry devises ways to get around a pipeline-capacity shortage to take petroleum from new wells to refineries.… Continue reading Transporting Crude Oil
Barron’s – Randall W. Forysth: You Call This a Crisis? The impact of not being able to trade stocks on Nasdaq pales against lots of other things. Oh, the moaning and gnashing of teeth! One would assume it was over an event on the scale of the deaths of more than 100,000 in Syria, some… Continue reading NASDAQ Flash Freeze, Somebody Gets It Right!