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Using Reserve Requirements In The Exit Strategy
March 28, 2013
The Financial Times – Jeremy Siegel: Fed must revert to tested reserves policy Before the financial crisis, banks held few reserves in excess of their requirements. This allowed the Fed to closely control the level of deposits that are extended when banks create loans. But today’s huge supply of excess reserves means financial institutions can… Continue reading Using Reserve Requirements In The Exit Strategy
Newsclips
Is The Situation In Cyprus A One-Off?
March 28, 2013
The Wall Street Journal – Lines Form as Cyprus Banks Reopen Lines formed outside banks in Cyprus’s capital early Thursday, but there was little sign of panic as the island’s lenders reopened after a nearly two-week hiatus. Small groups of depositors—mainly numbering a few dozen, mostly pensioners—pressed to enter the banks as they formally reopened… Continue reading Is The Situation In Cyprus A One-Off?
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Beating The Benchmark
March 28, 2013
MarketBeat (WSJ Blog) – This Is One Tough Market to Beat After digging into the guts of the stock market’s first-quarter rally, the folks at research firm Birinyi Associates conclude: “This is a really tough market to beat.” The firm looks at the S&P 500′s advance/decline line, a metric that measures how many stocks rise… Continue reading Beating The Benchmark
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How Much Of The Government’s Debt Goes Toward Paying Interest?
March 28, 2013
Real Time Economics (WSJ Blog) – If Rates Rise, Larger Deficit Follows Big borrowers are very sensitive to interest rates. The federal government is a big borrower. Even at today’s super-low interest rates, Washington spends a lot of money on interest — more than 6% of all federal spending last year. And it will spend… Continue reading How Much Of The Government’s Debt Goes Toward Paying Interest?
Newsclips
The Welfare State Continues To Grow
March 28, 2013
<Click on chart for larger image> The Wall Street Journal – Use of Food Stamps Swells Even as Economy Improves The financial crisis is over and the recession ended in 2009. But one of the federal government’s biggest social welfare programs, which expanded when the economy convulsed, isn’t shrinking back alongside the recovery. Enrollment in… Continue reading The Welfare State Continues To Grow
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Central Banks’ Struggle With Inflation
March 28, 2013
Bloomberg.com – Central Banks Must Master Their Fear of Inflation Any central banker will tell you that anchoring inflation expectations is vital for economic stability. Few want to be suspected of even considering a controlled dose of higher inflation — in fact many would say there is no such thing. This thinking is counterproductive. Modern… Continue reading Central Banks’ Struggle With Inflation
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Bond Hedge Funds Reach For Yield With Stocks
March 28, 2013
The Wall Street Journal – Funds Reshape Investment Mold Hedge funds that specialize in bonds are bulking up on stocks, in the latest sign of investor concern over the health of the long bull market in debt prices. Fund managers that have made winning bets in corporate loans, mortgage bonds and distressed debt are altering… Continue reading Bond Hedge Funds Reach For Yield With Stocks
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Don’t Mess With Texas
March 28, 2013
The Washington Times – Gov. Perry: Texas wants its gold back from the Federal Reserve Gov. Rick Perry told Glenn Beck on his radio show last week that he wants the state’s $1 billion in gold reserves back from the Federal Reserve. State Rep. Giovanni Capriglione is sponsoring a bill that would establish the Texas… Continue reading Don’t Mess With Texas
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Cartoons
March 28, 2013
MarketBeat (WSJ Blog) – The Mattress Safe: Cushion Your Pain In Spain An industrious Spanish bed maker has come up with a novel take on money-hoarding: a mattress with a built-in safe. With many Europeans gripped by anxiety about where to keep their savings, Salamanca-based Descanso Santos Sueños is selling the mattresses for 875 euros… Continue reading Cartoons
Charts of the Week
Charts of the Week
March 27, 2013
Charts of the Week Topics Covered This Week Include: Mutual Fund Flows Stock Market Correlation Supporting The Stock Market Earnings Update Credit Market Update Home Prices Is A Stock Market Rally Coming? Japan And Easy Money Gold Still Rallying Despite Retail Liquidation Copper Retail Gas Prices Food Stamps Gold Futures: Producers And Other Reportables Keep… Continue reading Charts of the Week
Newsclips
What The Situation In Cyprus Means For Europe
March 27, 2013
The Financial Times – Cyprus adds to Europe’s confusion The bailout is another occasion for anger with the European project to bubble to the surface The crisis in Cyprus may be a storm in an economic teacup. But it has important lessons for much larger vessels, including the eurozone as a whole. Some of those… Continue reading What The Situation In Cyprus Means For Europe