Comment Today at 9 AM CT (10:00 AM ET, 7:00 AM PT, and 15:00 BST), Bianco Research, in conjunction with Arbor Research & Trading, will be hosting a webcast/teleconference moderated by Jim Bianco. Join us today as we discuss the Federal Reserve and the markets. The Federal Reserve is talking about stopping QE but at… Continue reading The End of QE And The Markets
The Wall Street Journal- Fed’s Dudley: Markets Wrong to Think Tighter Policy Coming Soon “A rise in short-term rates is very likely to be a long way off” even as it’s possible that the central bank may slow the pace of its bond-buying program later this year, Federal Reserve Bank of New York President William… Continue reading Federal Reserve Officials Try To Calm Markets
FT Alphaville – Rates and the US housing market The sell-off in the bond market has already had a marked detrimental impact on the benchmark 30-year mortgage rate. The MBA measure has increased from 3.59% to 4.46% over the past few weeks. But at the margins, higher interest rates are another reason to expect the… Continue reading Mortgage Rates Continue To Rise
Bloomberg.com – Ratings Ratio Worst Since 2009 as Profits Slow: Credit Markets Corporate creditworthiness in the U.S. is deteriorating at the fastest pace since 2009 with earnings growth slowing as yields rise from record lows. The ratio of upgrades to downgrades fell to 0.89 times in the first five months of the year after reaching… Continue reading Corporate Creditworthiness is Getting Worse
Forbes.com – For Suggesting An End To QE, The Bernanke Fed Is Likely Stuck With QE In other words, the rest of the world is not only drifting toward more (not less) QE itself, but the implications of all of this for the U.S. is also – more problems, and thus more QE for longer.… Continue reading Stuck With QE
<Click on chart for larger image> Project Syndicate – Martin Feldstein: Why Is US Inflation So Low? The absence of significant inflation in the past few years does not mean that it won’t rise in the future. When businesses and households eventually increase their demand for loans, commercial banks that have adequate capital can meet… Continue reading Low Inflation
Bloomberg.com – Did Bernanke Signal Return of Risk-Off Market? In his speech last August at Jackson Hole, Wyoming, Bernanke said, “Some observers have raised concerns that, by driving longer-term yields lower, nontraditional policies could induce an imprudent reach for yield by some investors and thereby threaten financial stability.” Yet he dismissed the threat: “We have… Continue reading The Return Of The Risk-Off Market
The Financial Times – Ignore the pessimists – central banks are helping Much of the most vocal and opinionated analysis of the impacts of central bank asset purchases – quantitative easing – strikes me as somewhat contradictory. But it is also important and may explain the recent reaction, quite probably an overreaction, to limited news… Continue reading Central Bank Praise
The Wall Street Journal – PETER NICHOLAS and JON HILSENRATH: White House Makes Shortlist for Bernanke’s Job There Is No Front-Runner So Far; Nomination May Not Happen Till Fall Obama administration officials have spoken to the Senate about putting forward a nominee so that legislative staff can begin the vetting process and prepare for confirmation… Continue reading Who Will Take Bernanke’s Job?
Business Insider – It’s The 30-Year Anniversary Of The Greatest Wall Street Movie Ever Made In June of 1983, “Trading Places” was released in theaters. It remains the greatest Wall Street movie ever made. Thirty years later, most regard it as part of the canon of American comedies, having launched, revived, or defined the careers… Continue reading The 30-Year Anniversary Of Trading Places
Guest of a Guest – Exclusive Steven Cohens $14 billion hedge fund is fed to the birds This just in: Apparently even billionaires have pest control problems, or so one might surmise from the flock of wild birds terrorizing the SAC trading floor yesterday. Steven Cohen’s $14 billion hedge fund in Stamford closed early on… Continue reading When It Rains, It Pours