Bloomberg.com – Deposit Flight From Europe Banks Eroding Common Currency An accelerating flight of deposits from banks in four European countries is jeopardizing the renewal of economic growth and undermining a main tenet of the common currency: an integrated financial system. A total of 326 billion euros ($425 billion) was pulled from banks in Spain,… Continue reading Europe
<Click on chart for larger image> The Financial Times – Saudis offer extra oil to offset price rises Saudi Arabia has offered its main customers in the US, Europe and Asia extra oil supplies through the end of the year, a sign the world’s largest exporter is worried about the impact of rising prices on… Continue reading Oil Production
Bloomberg.com – Fed’s Dudley Says Easing Vital to Spur Too-Slow Growth Federal Reserve Bank of New York President William C. Dudley said the central bank’s new stimulus is vital for boosting “unacceptably slow” improvement in economic growth. “In the absence of further monetary easing, I concluded that growth would remain too subdued over the next… Continue reading Dudley Defends Federal Reserve Actions
The Washington Post – Fed’s latest stimulus may have little impact on mortgage borrowers The Federal Reserve took aim at the nation’s wobbly housing market last week with its biggest stimulus action in two years, but that firepower is doing little to lower mortgage rates or make home loans more available for Americans. Instead, banks… Continue reading Who Benefits From QE3?
Reuters.com – Germany’s big worry: China, not Greece Berlin, not Brussels, will decide the future of the ailing eurozone because Germany’s economic power and its status as the European Union’s main paymaster give it an effective veto over key decisions.So it comes as a surprise to find that in Berlin’s corridors of power, the main… Continue reading Germany Is Worried About China
The Financial Times – CMBS issuance to jump in US Issuance of commercial mortgage-backed securities, touted as the asset of choice for investors driven out of the residential mortgage market by the Federal Reserve, is expected to ramp up next year, but still may not keep pace with demand, analysts say. Standard & Poor’s, the… Continue reading CMBS Issuance Increases
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Comment Jim Bianco was on Bloomberg TV yesterday discussing the the markets. To view the interview click on the image above. To view any of our recent interviews click here. The stock market is going to be closely watched over the next three months. If returns struggle, this will be the first time after a… Continue reading What’s Next For The Markets?
<Click on chart for larger image> Reuters – US CFTC Searching for Cause of Rapid Oil Price Plunge The U.S. Commodity Futures Trading Commission is in contact with futures exchanges over a brief plunge in oil prices on Monday afternoon, a top regulator at the agency said, adding that it is unclear if high-frequency trading… Continue reading Crude Oil Plunges
The Wall Street Journal – Treasury Motors Perhaps you’ve heard that General Motors is “alive” and that President Obama is more or less solely responsible. But if his $50 billion federal bailout is why “the American auto industry has come roaring back,” as he put it in Cincinnati Monday, why not formalize the achievement by… Continue reading The Profit/Loss Statement From The Bailout
Dealbreaker.com – The Fed Is Worried That You Might Be Worried About Uncertainty When you are in the business of buying and selling volatility you can get sort of cynical about whether volatility is a thing, and whether it is appropriate to buy and sell it. We talked earlier today about the fact that if… Continue reading Defining Uncertainty
<Click on chart for larger image> The Financial Times – US inflation fears rise after QE3 Bond investors pushed a key measure of US inflation expectations on Monday to their highest level since 2006, in response to last week’s aggressive policy action by the Federal Reserve. Market expectations for US inflation over the next 10… Continue reading Inflation Fears Ramp Up