Real Time Economics – Lone Dissenter: George Continues to Call for Less Stimulus Kansas City Fed leader Esther George remains the standard bearer for central bankers who want the central bank to pare back on its stimulus. Ms. George took over her bank in 2011. In her first hitch as a voting member of the… Continue reading The Lone Dissenter
CNN Money – Why renters are still driving America’s building boom Construction of apartment complexes still makes up 33% of all residential construction, much more than the pre-housing crisis average of 20%. As America’s housing market slowly heals, good news is pouring in from homebuilders: They’re building more; they’re hiring more workers; they’re building bigger… Continue reading Renters
The Financial Times – ECB issues ultimatum to Cyprus The European Central Bank raised the stakes in the Cyprus crisis on Thursday, telling Nicosia it had until Monday to agree a bailout with the EU and International Monetary Fund or it would cut off emergency liquidity provision to the country’s banks. The hardline stance from… Continue reading Cyprus
IB Times – Equity Bubble is Based on Unsustainable Earnings The most pervasive question on Wall Street these days is if the Dow Jones Industrial Average, which is at a record level in nominal terms, reflects strong corporate profits and an improving economy; or simply has been achieved by the manipulations of the Federal Reserve.… Continue reading Corporate Earnings And Equities
Bloomberg.com – Why Global Economies Face an Age of Deflation In recent years, monetary and fiscal stimulus across the world have led to the assumption that serious inflation, if not hyperinflation, is on its way. I believe chronic deflation is more likely. The expectation of rising prices is reasonable. Most people have only experienced inflation.… Continue reading Deflation Talk
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Charts of the Week Topics Covered This Week Include: Last Week’s 10-Year Shortage Last Week’s 10-Year Shortage – 2 An Updated Look At Central Bank Balance Sheets Pictures Of Housing Inflation ETF Of Holdings Of Silver And Gold An Updated Look At Credit The Federal Reserve Are Initial Claims Bottoming? Investor Intelligence An Updated Look… Continue reading Charts of the Week
The Wall Street Journal – Cyprus, EU Work on Bank Contingency Plans The Cyprus government was working with European officials on contingency plans to keep the island’s teetering financial system afloat in case of a crippling outflow of deposits when the island’s banks reopen after an extended bank holiday. But analysts weren’t expecting the same… Continue reading Cyprus
The Wall Street Journal – Jobless Aid Shrinks Unevenly Workers across the country are seeing the length of their jobless benefits pared back, a shakeout that is playing out unevenly and pinching people in states still struggling with unemployment above the national average. The changes in benefits are partly the result of an improving job… Continue reading Jobless Benefits
CNBC – Wall Street Betting Fed Keeps QE Coming: CNBC Survey Wall Street has boosted its outlook for quantitative easing (QE) from the Federal Reserve and reduced its concerns about a recession in the next year to the lowest level in 20 months, according to the March CNBC Fed Survey. The 54 respondents to the… Continue reading CNBC Takes The Market’s Temperature
The Wall Street Journal – Freddie Mac Sues Big Banks Freddie Mac sued more than a dozen of the world’s biggest banks for alleged manipulation of interest rates, in the first government-backed private litigation over the rate-rigging scandal. The lawsuit, filed in U.S. District Court for the Eastern District of Virginia, by the mortgage-finance giant… Continue reading Freddie Sues The BBA Over LIBOR Manipulation
MarketWatch – Cyprus won’t stop a 20% U.S. stock rally: BlackRock’s Fink “It’s a $10 billion issue. It does remind us of the frailty of Europe. It does remind us that the European fix will be multiple years…it has some symbolism impact on Europe, but it’s not really a major economic issue.” So says Laurence… Continue reading Laurence Fink Remains Bullish Stocks Despite News From Cyprus