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The Federal Reserve Is Not Listening To The Markets
August 16, 2013
Comment In the video above, CNBC’s Steve Liesman said the following (starting about 7:15): Steve Liesman: I think the thing the Fed would probably take the most note of today, Scott, is the markets because the Fed looks at the decline in the stock market and, of course, especially the rise in yields as a… Continue reading The Federal Reserve Is Not Listening To The Markets
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The World Economy And How Forecasting Is Done
August 16, 2013
The Economist – Economic growth: A rickety rebound The global economy is gaining momentum. But only in America is the acceleration likely to last THE dog days of August have often spelled trouble for the world economy. In 2011 America’s politicians flirted with default and the euro seemed to be heading for collapse. The summer… Continue reading The World Economy And How Forecasting Is Done
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What Did The Chinese Do With Treasuries In June?
August 16, 2013
Bloomberg.com – China’s Treasury Holdings Fall Amid Fed Talk on Taper Holdings of Treasuries in China, the largest foreign lender to the U.S., fell in June for the first time in five months amid discussion by Federal Reserve officials about slowing the pace their bond purchases. China’s stake dropped by $21.5 billion in June, or… Continue reading What Did The Chinese Do With Treasuries In June?
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Chinese Banks And Bonds
August 16, 2013
The Wall Street Journal – Critics Decry Risks Posed by Link Between China’s Banks and Bonds The Market ‘Is Like a Child Compared to That in Other Countries’ Worried about a boom in lending by the country’s fast-growing “shadow banks,” China created a cash crunch in June to squeeze their source of funding. One unintended… Continue reading Chinese Banks And Bonds
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Retailing And The Economy
August 16, 2013
Reuters – Analysis: U.S. retailers say uneven recovery keeps consumers cautious From Wal-Mart Stores Inc and Gap Inc to Macy’s Inc and McDonald’s Corp, chains that cater to middle- and lower-income Americans say they are feeling the pinch of an uneven economic recovery. A host of retailers have reported tepid sales lately, highlighting the stress… Continue reading Retailing And The Economy
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China’s Economy
August 16, 2013
The Economist – The economy: A bubble in pessimism China’s economy is inefficient, but it is not unstable Concerns about the first number were assuaged a little this month, when China reported strong figures for trade and industrial production (which rose by 9.7% in the year to July; see chart). Yet beneath the cyclical ups… Continue reading China’s Economy
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Bullard Weighs In On QE’s Capacity To Produce Bubbles
August 16, 2013
The Wall Street Journal – Fed’s Bullard Says Impact of Easy Money Remains a Concern Federal Reserve Bank St. Louis President James Bullard said Thursday that the impact of the Fed’s easy-money policies on the stability of the financial system remains a concern for the central bank, but he doesn’t see any asset bubbles that… Continue reading Bullard Weighs In On QE’s Capacity To Produce Bubbles
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Alternative Investments
August 16, 2013
The Wall Street Journal – ‘Alternative’ Investments Draw Flak Investors Flock to New Risky Products, and Regulators Are Raising Concerns Individual investors are pouring tens of billions of dollars into a new generation of complex investment products, and regulators are raising concerns that not all buyers understand the costs and risks. Outside scrutiny is intensifying… Continue reading Alternative Investments
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Krugman Conveniently Forgets One Of His Biggest Blunders
August 16, 2013
The New York Times – Paul Krugman: The Great Recession Test A postscript to my Meltzer post: I actually feel some human sympathy for Meltzer (though not too much). After all, put yourself in his position: you’ve literally spent decades promoting yourself as an authority on monetary policy, co-founding the Shadow Open Market Committee to… Continue reading Krugman Conveniently Forgets One Of His Biggest Blunders
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Eurozone Economy
August 16, 2013
The Economist – Euro-zone economies: Mirabile dictu A recovery at last, but no revelation The upturn was led by Germany, whose GDP increased by 0.7%. France did surprisingly well, with output up by 0.5%. There was also some encouraging news from southern Europe. Output continued to fall in Italy and Spain but the rate of… Continue reading Eurozone Economy
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Cartoons
August 16, 2013
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