<Click on chart for larger image> The New York Times – Paul Krugman: Phony Fear Factor Finally, just as happened with the claims that slashing spending is actually expansionary and terrible things happen if government debt rises, the usual suspects found an academic research paper to adopt as mascot: in this case, a paper by… Continue reading Krugman Does Not Believe In Uncertainty
The Economist – Summers v Yellen What does it take to run America’s central bank? HOW to choose someone for the most powerful economic job in the world? With name-calling and innuendo, it seems. A rancorous campaign for the Federal Reserve’s top job has disturbed the normal August sleepiness in Washington, DC. Janet Yellen, an… Continue reading Your Daily Installment In Summers vs Yellen
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The Financial Times – Mark Carney plays down scepticism over interest rate policy Mark Carney, Bank of England governor, has played down market scepticism that the Monetary Policy Committee will fail to keep interest rates on hold for another three years. The BoE’s forward guidance to markets and the public that rates would stay at… Continue reading Carney And The BOE
The Economist – Carry on trading Why nominal interest-rate differentials are important to currency markets In the forward markets, which set prices for specified future dates, this rule is rigidly observed. When one country has a higher interest rate than another, its currency will trade at a discount to that of the other nation in… Continue reading Carry Trades
The Wall Street Journal – Data Suggest China’s Economy Stabilizing Growth in industrial output in July was far better than expected, coming in at 9.7% compared with a year ago, according to data released Friday. That followed a surprisingly weak 8.9% rise in June, and it was well above expectations of a 9% rise, according… Continue reading China
CNBC – Marc Faber: Look out! A 1987-style crash is coming The S&P has rallied 19 percent in 2013, which is impressive by any measure. But the market did far better in 1987, when stocks added more than 30 percent from the beginning of the year to Aug. 8. The problem? The market ended up… Continue reading Are We Repeating 1987?
The Economist – What Angela isn’t saying Euro-zone rescues have left sovereign debt too high to be sustainable Ireland will then rely on private markets to meet its financing needs rather than on official loans. It will no longer have to comply with harsh fiscal and economic conditions set and monitored by the European authorities… Continue reading Germany
MarketWatch – Brett Arends: 5 signs Wall Street’s zombie apocalypse is at hand Undead money pros mindlessly repeating upbeat phrases Unlike a zombie, most M.B.A. money-managers can actually form complete sentences, but what they have to say isn’t much more intelligent than the grunting of a B-movie monster. Here are five phrases that are a… Continue reading Are You A Zombie Money Manager?
Zero Hedge – Merle Hazard On “The Great Unwind” The most financially savvy country and western crooner in America, Merle Hazard, returns with the must-watch release of a new economics chart-topper: “The Great Unwind.” As Warren Buffett previously noted, “all over the world, everybody that manages money is waiting to catch the signal that the… Continue reading Cartoons
Tim Duy’s Fed Watch – Crazy Fedspeak By the September meeting we have at best only the earliest data with which to judge the second half of the year. If you really need to evaluate the second half of the year, you need to wait until October at the earliest. September should be out of… Continue reading The Federal Reserve’s “Data Dependency”
Comment This past weekend, Jim Bianco joined many other economists at David Kotok’s yearly fishing trip. In the video above, many of them share their opinion on the possibility of the Federal Reserve tapering. To view the interview, click on the image above. To view any of our recent interviews, click here. The Financial Times… Continue reading Discussing The Taper