The New York Times – Volcker’s Aim: Responsive Government As chairman of the Federal Reserve, Paul A. Volcker tamed inflation. More recently, he took on the country’s biggest banks in an effort to force them to give up lucrative but risky Wall Street-style trading. Mr. Volcker will declare another war on Wednesday, this time on… Continue reading Volcker Speaks
Bloomberg.com – Fed’s 100-Year Roots Grew From Glass Who Lived Bernanke’s Crisis After the 1907 financial crisis sank the country into a 13- month recession, Congress in 1908 authorized a National Monetary Commission. Members of the group delivered a comprehensive report four years later on the state of central banking and financial systems around the… Continue reading History Of The Federal Reserve
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Real Time Economics – Jon Hilsenrath: Fed Wrestles With Market Expectations About Pace of QE Managing market expectations is one of the Fed’s most challenging tasks. If market expectations get out of sync with what the Fed plans to deliver, it could be the source of unpleasant volatility. Fed officials have been struggling of late… Continue reading Will The Dealers Have Too Much Influence On The Federal Reserve?
The New York Times – Paul Krugman: Japan the Model A generation ago, Japan was widely admired — and feared — as an economic paragon. Business best sellers put samurai warriors on their covers, promising to teach you the secrets of Japanese management; thrillers by the likes of Michael Crichton portrayed Japanese corporations as unstoppable… Continue reading Krugman Thinks Japan’s Experiment Is Going To Work
The Wall Street Journal – Judy Shelton: Bernanke Talks, Markets Wobble. There Must Be a Better Way Since Federal Reserve Chairman Ben Bernanke testified before Congress’s Joint Economic Committee Wednesday morning, commenting on the economic outlook and responding to questions from lawmakers on the likely path of monetary policy, financial markets have experienced turmoil. Triple-digit… Continue reading FOMC Communications
MoneyBeat (WSJ Blog) – The New ‘New Paradigm’ for Equities There’s a vigorous debate about whether U.S. equities are overpriced or fairly valued. One side argues that shares are expensive relative to past price-to-earnings and replacement-cost metrics. The other points out that set against Treasury bond yields and profit expectations, shares are–at the very least–fair… Continue reading Are Stocks Cheap?
The Financial Times – Edward Luce: Larry Summers has an edge in the race to head the Federal Reserve Charm is overrated. The most important quality for the role is intellectual leadership When Wall Street predicts something will happen in Washington, it is often wise to bet on the opposite. Multiple polls show Janet Yellen,… Continue reading Federal Reserve Chairman Larry Summers?
The Financial Times – ‘Cov-lite’ loans soar in dash for yield Investors are giving up many of the protections that have traditionally accompanied lending to risky companies, with the hunt for high-yielding assets shifting the balance of power towards borrowers. Many of the world’s most highly indebted companies have been able to issue new loans… Continue reading A Warning Sign For The Junk Market
MarketWatch – Bears cite performance chasing as stocks rise During that time, stocks have appeared impervious to bad news — only taking an appreciable pause during the week of the Boston bombings — with the Dow industrials or the S&P 500 or both closing at all-time highs on practically a daily basis. Much of that… Continue reading What’s Next For Stocks?
The Wall Street Journal – U.S. Oil Boom Divides OPEC Cartel Struggles to Respond to Rise of Shale Drilling The American energy boom is deepening splits within the Organization of the Petroleum Exporting Countries, threatening to drive a wedge between African and Arab members as OPEC grapples with a revolution in the global oil trade.… Continue reading US Crude Production
The Wall Street Journal- Asia Goes on a Debt Binge as Much of World Sobers Up China, the world’s second-largest economy, has led the borrowing binge. China’s debt-to-GDP rose to 183% in mid-2012, from 153% in 2008, according to McKinsey. Some economists, including Nomura Holdings Inc.’s 8604.TO -1.14% Zhiwei Zhang, say China’s debt-to-GDP ratio has… Continue reading Asia Borrows