The Wall Street Journal – Mortimer Zuckerman: Mistreating Ben Bernanke, the Man Who Saved the Economy As the president pushes him toward the exit, let’s remember whose bold interventions averted a global catastrophe It will be years, if not decades, before we know the impact of his reinterpretation and expansion of the Fed’s role in… Continue reading Bernanke Love From A Washington “A-Lister”
The Economist – The Unsteady States of America It is not just Detroit. American cities and states must promise less or face disaster America seems in a similar state of denial about Detroit filing for bankruptcy (see article). Many people think Motown is such an exceptional case that it holds few lessons for other places.… Continue reading Public Pension Funds
The Economist – Emerging economies: The Great Deceleration The emerging-market slowdown is not the beginning of a bust. But it is a turning-point for the world economy WHEN a champion sprinter falls short of his best speeds, it takes a while to determine whether he is temporarily on poor form or has permanently lost his… Continue reading (Sub)merging Markets
Bloomberg – Treasury Hedging Most Expensive Ever Relative to Stocks (no link) The cost of protecting against losses in a security tracking Treasuries reached a record compared with U.S. shares on signs the Federal Reserve will reduce stimulus as the economy accelerates. Implied volatility on the iShares 20+ Year Treasury Bond ETF is 1.5 percent… Continue reading Implied Volatility
MoneyBeat (WSJ Blog) – Measuring Mario Draghi’s Promises 1 Year On One year ago, ECB President Mario Draghi uttered two short sentences that changed the course of Europe’s debt crisis, and propelled a once-reluctant central bank more deeply into its role as guardian of the euro. “Within our mandate, the ECB is ready to do… Continue reading The One Year Anniversary Of “Whatever It Takes”
The Big Picture – Post-Detroit Filing, Munis Are Cheap Municipal bonds are an “outrageous bargain” in the wake of Detroit’s bankruptcy filing, according to David R. Kotok, Cumberland Advisors Inc.’s chairman and chief investment officer. As the CHART OF THE DAY shows, the highest-rated notes and bonds of state and local governments yield more than… Continue reading Muni Bonds Are Cheap
Zero Hedge (blog) – Seth Klarman Is “Very Worried About The Future” In A World That Is Living On A Prayer Klarman: Like all of you, I’m worried about our future. I’m concerned about the prospect for upcoming generations to have the same opportunities that ours did, and I’m saddened that our generation was handed… Continue reading Seth Klarman Worries
The Wall Street Journal – Fed Chief Choice Shapes Up as Race Between Summers, Yellen Obama’s Decision Likely Hinges on What He Wants From a Central Banker The race to become the next leader of the Federal Reserve looks increasingly like a contest between two economists: Lawrence Summers and Janet Yellen. Mr. Summers is an… Continue reading Hilsenrath Agrees, Fed Chair Larry Summers Might Happen
The Financial Times – Robin Harding: First stage of QE tapering requires delicate timing After all the excitement of “taper talk”, the US Federal Reserve July meeting that ends next Wednesday may feel like an anticlimax, but policy will be evolving beneath the surface. Now that the Fed has set out a scenario for winding… Continue reading Timing The Taper
MarketWatch – Ignore the hype, earnings stink Earnings stink, plain and simple. And the fact that this story is squeezed from the headlines in favor of posts trumpeting new highs for the Dow Jones Industrial average makes you wonder if investors are really questioning what’s behind the highs, or just cheerleading the numbers on the… Continue reading Earnings Season