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What Will The ESM Buy?
September 25, 2012
Zero Hedge (Blog) – ESM Purchase Details Leaked Hitting the tape are leaked detailes obtained by Bloomberg detailing what the ESM will focus on as it is unleashed on the world. From Bloomberg: Europe’s permanent rescue fund will invest the core of its assets in AA or higher-rated debt issued by governments, central banks, euro-area… Continue reading What Will The ESM Buy?
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Is Draghi’s Bond Buying Legal?
September 25, 2012
Reuters – ECB, Bundesbank checking legality of bond-buying program: paper The European Central Bank and Germany’s Bundesbank central bank are getting lawyers to check the legality of the ECB’s new bond-buying program, a German newspaper said on Tuesday. German tabloid Bild, which did not name its sources, said ECB and Bundesbank in-house lawyers were checking… Continue reading Is Draghi’s Bond Buying Legal?
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Germany’s Exposure To European Banks
September 25, 2012
The Wall Street Journal – State of Europe’s Banks: Safe and Stressed As Europe races to restore confidence in Spain’s finances and the euro, Germany has another reason for urgency in resolving the crisis: the health of its own banks. German lenders have the highest exposure in Europe to Spain, at $139.9 billion, of which… Continue reading Germany’s Exposure To European Banks
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QE4?
September 25, 2012
CNBC – Fed May Need to Boost QE ‘Dramatically’ This Year: Pros The Federal Reserve’s latest easing move has been nicknamed everything from “QE3” to “QE Infinity” to “QEternal,” but some on Wall Street question whether the unprecedented move will be QEnough. With unemployment remaining high and the effects of previous Fed-sponsored quantitative easing programs… Continue reading QE4?
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More QE3 Hatred
September 25, 2012
TIME – Michael Schuman: When Central Bankers Attack: Why Ben and Company Can’t Save the Global Economy New action by central banks around the world has cheered markets, but the boost will only be temporary With the global economy still struggling to emerge from the Great Recession, the world’s central bankers have stepped in yet… Continue reading More QE3 Hatred
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When Would Bernanke’s Successor Raise Rates? How About Never?
September 25, 2012
Real-Times Economics (WSJ Blog) – When Would Bernanke’s Successor Raise Rates? The Fed has said it doesn’t plan to raise rates until mid-2015. But, according to Mr. Meyer’s calculations, Mr. Taylor — author of a famous Taylor Rule for monetary policy — already would have raised rates: He would have boosted them in the first… Continue reading When Would Bernanke’s Successor Raise Rates? How About Never?
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Moody’s Comes To The Federal Reserve’s Defense On Commodity Inflation
September 25, 2012
Real Time Economics (WSJ Blog) – Moody’s: Don’t Blame the Fed for Commodity Prices The tendency of industrial commodity prices to be bid higher in immediate response to actual or prospective monetary stimulus is a relatively new phenomenon, says Moody’s Analytics. Speculators respond to monetary stimulus by purchasing industrial commodities on the premise that it… Continue reading Moody’s Comes To The Federal Reserve’s Defense On Commodity Inflation
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Saving For A Rainy Day
September 25, 2012
The Wall Street Journal – New Wave of Workers Tries Novel Approach: Save More As older Americans lose jobs, lose homes and delay retirement, their children are watching and reacting. Growing numbers of young Americans are boosting savings, cutting spending and planning for retirement. Many people in their 20s and 30s, of course, struggle with… Continue reading Saving For A Rainy Day
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Refinancing & Mortgage Defaults
September 25, 2012
The Federal Reserve Bank of New York – How Much Can Refinancing Reduce the Risk of Mortgage Defaults? In our new research, we examine a sample of over 173,000 prime ARMs originated since 2003. In total, we have over 6.5 million monthly observations on these mortgages. We control for a number of other factors that… Continue reading Refinancing & Mortgage Defaults
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LIBOR
September 25, 2012
Bloomberg.com – Libor Gives Prosecutors Chance to Change Banking Culture A defining feature of the 2008 financial crisis has been the dearth of criminal prosecutions. Rightly or wrongly, people have gotten the impression that the sheriff is asleep. The global Libor scandal has the potential to change that…It’s important that prosecutors examine the entire chain… Continue reading LIBOR
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Cartoons
September 25, 2012
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