<Click on chart for larger image> <Click on chart for larger image> Shanghai Daily (China) – Fund crisis pulls repo rate to 2-year high A liquidity squeeze yesterday drove interbank lending rate to a two-year high after China s central bank disappointed the market by not pumping in funds The seven-day repurchase rate which measures… Continue reading China’s Liquidity Squeeze
<Click on chart for larger image> Bloomberg.com – Bernanke Ignores Low Inflation. Market Doesn’t. The most striking thing from today’s Federal Reserve Open Market Committee decision is what wasn’t said: How will the Fed respond if inflation continues to undershoot its 2 percent target? This issue lies at the heart of the dissenting vote from… Continue reading Inflation Targeting
Comment Yesterday Rick Santelli appeared in the two interesting segments shown above. The first is a rant against FOMC policy while the second is an interview with Jon Hilsenrath of The Wall Street Journal. As to the issue of whether the FOMC’s stock of assets owned matters more than the flows of their purchases, the… Continue reading Rick Santelli’s Busy Day
<Click on chart for larger image> <Click on chart for larger image> <Click on chart for larger image> The Wall Street Journal – Long-Term Mutual Fund Outflows $13.34 Billion in Latest Week – ICI The latest week’s mutual fund flow represents the biggest weekly outflow recorded by ICC since August 2011. Investors generally had been… Continue reading Huge Bond Fund Outflows Continue
The Telegraph – Germany’s ascendancy over Europe will prove short-lived If demography is destiny, it may be clear within five years that ageing Germany is going the way of Japan. Within 20 years it may equally be clear France and Britain are regaining their 19th century role as the two dominant powers of Europe, albeit… Continue reading Germany’s Stature In The EU
QUESTION: Mr. Chairman, the SEC’s money market fund proposal is far less comprehensive than the plan that you and the Financial Stability Oversight Council endorsed. Do you think FSOC should defer to the SEC or still press for more to be done? BERNANKE: Well, I’m very glad to see that the SEC has taken up… Continue reading Possibly The Scariest Answer On Money Market Funds No One Is Talking About
The Onion (Satire) – Financial Sector Thinks It’s About Ready To Ruin World Again Claiming that enough time had surely passed since they last caused a global economic meltdown, top executives from the U.S. financial sector told reporters Monday that they are just about ready to completely destroy the world again. Representatives from all major… Continue reading We Are Professionals – Do Not Attempt This At Home
QUESTION: Thanks, Mr. Chairman. Since you’ve referred to Mr. Hillsnerath, is he the real power behind the throne? BERNANKE: No.
Charts of the Week Topics Covered This Week Include: Mutual Fund Flows A Short History Of QE And The Stock Market Is Abenomics Working? Is Abenomics Working? – 2 Bond Hatred Is Alive And Well The Euro Gold Futures An Early Look At Earnings Forecasts An Early Look At Earnings Forecasts -2 Is Housing Keeping… Continue reading Charts of the Week
Bloomberg.com – Guide to Fed Decision Day From Statement to Bernanke Press Talk Here’s what to look for when the Federal Open Market Committee releases a statement and new economic forecasts at 2 p.m. after a two-day meeting in Washington and Chairman Ben S. Bernanke holds a press conference at 2:30 p.m.: — An indication… Continue reading The Federal Reserve Meets Today
<Click on chart for larger image> NewsDaily – Surge in U.S. oil-by-rail suffers first slowdown as spreads slim Oil traders are gently tapping the brakes on the thriving business of shipping U.S. and Canadian crude oil by rail, industry data showed this week, the first sign of a slowdown after a two-year boom. As price… Continue reading The Louisiana Light/WTI Spread