(Hat Tip The Big Picture) The Economist – Black marks from Black Monday TWENTY-FIVE years ago, on October 19th 1987, global stockmarkets suddenly, and unexpectedly, collapsed on what instantly became known as Black Monday. The Dow Jones Industrial Average fell by almost 23% in a single session, still a record decline. At the time analysts… Continue reading The 25th Anniversary Of Black Monday
<Click on chart for larger image> Reuters – Helicopters’ faint whirring heard in UK: James Saft It is one thing when commentators burble on about the possibility of outright central bank financing of deficits, it is quite another when a viable candidate to lead the Bank of England is reported to be thinking along these… Continue reading More Sugar Coming From The Bank Of England?
Vanity Fair – Jamie Dimon on the Line Is Jamie Dimon a straight-shooting managerial genius, who made JPMorgan Chase the only “port in the storm” during the financial meltdown—the latest coup in his brilliant financial career? Or a knee-jerk opponent of bank reform, in denial about the recent, humiliating $6 billion blunder in JPMorgan’s London… Continue reading Yet Another Jamie Dimon Puff Piece
The Economist – China’s GDP numbers: Remembrance of things fast China’s economic slowdown looks to be over CHINA’S statisticians this week revealed that the country’s economy had grown by 7.4% in the third quarter. That was China’s slowest rate of expansion since early 2009 (see chart), and a pale shadow of the 9-12% rates it… Continue reading China
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<Click on chart for larger image> <Click on chart for larger image> The Wall Street Journal – Home Building Surges as Confidence Grows Residential construction picked up momentum in September and now is running at its highest level in four years, a turn that could have a positive effect on the jobs market and the… Continue reading A Look At Housing Starts
<Click on chart for larger image> <Click on chart for larger image> Bloomberg.com – FOMC Straying on Price Target, Former Fed Officials Say The Federal Reserve appears to be backing away from its commitment to keep inflation at 2 percent with its plan to buy mortgage-backed securities until employment improves, two former Fed officials said.… Continue reading Is 2% Inflation Still The Federal Reserve’s Target?
Barron’s – Don’t Blame Us, Bernanke Says But criticism rises from all sides to central-banking money-printing policies that may do more harm than good. Hey, don’t blame us for your problems. That’s the message Federal Reserve Chairman Ben Bernanke delivered — in appropriately polite and academic tones, of course — to the central bankers, finance… Continue reading Don’t Blame The Federal Reserve!
Bloomberg.com – Spain Banks Face More Pain as Worst-Case Scenario Turns Real Spain’s banks face more loan losses as the pace of an economic slump risks turning a worst-case scenario dismissed in stress tests into reality. Bad loans as a proportion of total lending jumped to a record 10.5 percent in August from a restated… Continue reading Spain
MarketWatch.com – The next euro storm is in Italy Commentary: Berlusconi may campaign on anti-euro platform One thing should have been learned for certain during the almost three years the euro has been in crisis. While the markets are getting worked up over one issue, the real trouble is usually brewing somewhere else. Right now,… Continue reading Is Italy Next?
Bloomberg.com – U.S. to Get Downgraded Amid Fiscal ‘Theater,’ Pimco Says The sovereign credit rating of the U.S. will be cut as “fiscal theater” plays out in the world’s biggest economy, according to Pacific Investment Management Co., which runs the world’s largest bond fund. “The U.S. will get downgraded, it’s a question of when,” Scott… Continue reading More On The Fiscal Cliff