Washington Wire (WSJ Blog) – Romney Reiterates He Would Replace Bernanke Mitt Romney said Thursday that he would replace Federal Reserve Chairman Ben Bernanke, dismissing the advice of a top adviser who suggested this week that the chairman should be considered for a third term. The presumptive Republican nominee told the Fox Business Network that… Continue reading Fire Bernanke!
The Economist – The Finn red line The Greek economy is in deep recession, and Germany seems adamant that no more money will be made available to help it out. Germany’s central bank remains opposed to the ECB buying bonds in order to cap the borrowing costs of Spain and Italy. To these familiar concerns… Continue reading Finland
Dallas Federal Reserve – China’s Slowdown May Be Worse Than Official Data Suggest the months following the 2008–09 economic crisis, emerging-market economies robustly rebounded. Output in China and India expanded more than 10 percent in 2010, and Brazil’s gross domestic product (GDP) growth of 7.5 percent was its best performance in 25 years. Emerging-market economies… Continue reading A Hard Landing For China?
The Financial Times – Gillian Tett: Don’t be fooled by short-selling bans If a new paper published in a report from the Federal Reserve Bank of New York is correct, the answer is sobering. In recent months, a group of Fed and independent economists have analysed the impact of the short selling ban that was… Continue reading Short-Selling Bans Do Not Work!
CNBC – Odds of Global Recession Are 100%: Marc Faber There’s still a 100 percent chance the world heads into recession, Marc Faber, publisher of “The Gloom, Boom & Doom Report,” told CNBC’s “Closing Bell” on Thursday, echoing a call he made in May.
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The Wall Street Journal – Hilsenrath: Fed Moving Closer to Action The Federal Reserve sent its strongest signal yet that it is preparing new steps to bolster the economic recovery, saying measures would be needed fairly soon unless growth substantially and convincingly picks up. Minutes released Wednesday from the Fed’s July 31-Aug. 1 policy meeting… Continue reading The FOMC Minutes & QE3
<Click on chart for larger image> The Wall Street Journal – ‘Fiscal Cliff’ Has Many Perils The U.S. economy likely would slide into a “significant recession” next year if Congress doesn’t avert tax increases and spending cuts set to begin in January, the Congressional Budget Office said Wednesday. But if they are postponed for at… Continue reading The Fiscal Cliff
The Wall Street Journal – Greece Faces New Pressure on Cuts A top European official on Wednesday warned that Greece faced a “last chance” in proving its credibility to international creditors, and said a decision on Athens’s proposal to extend deadlines on overhauls wouldn’t come until after inspectors visit next month. Speaking after a meeting… Continue reading Greece
The Financial Times – Lex: Tarp assets – journey’s end The long journey down Maiden Lane is approaching its end. The celebrations should be kept in perspective, though. Maiden Lane II and III were entities, capitalised primarily by loans from the New York Fed, that bought toxic mortgage assets from AIG and its banking counterparties.… Continue reading TARP Assets
Real Time Economics (WSJ Blog) – How the Fed Prepares Its Minutes Minutes for Federal Open Market Committee meetings are prepared with meticulous care. Central bank officials and staff know that the public will scrutinize every word and the minutes are carefully crafted to convey a certain message. The process commences even before the meeting… Continue reading The Art Of Preparing The FOMC Minutes
The Wall Street Journal – Shadowboxing With the Recovery in Home Sales The salvo of distressed home sales that was supposed to sink the housing recovery hasn’t shown up yet. Perhaps it never will. The National Association of Realtors said Wednesday that sales of existing (translation: previously owned) homes rose 2.3% in July from May.… Continue reading Housing’s Shadow Inventory