The Wall Street Journal – Cities Consider Seizing Mortgages A handful of local officials in California who say the housing bust is a public blight on their cities may invoke their eminent-domain powers to restructure mortgages as a way to help some borrowers who owe more than their homes are worth…The municipalities, about 45 minutes… Continue reading States Deal With Underwater Mortgages
The Wall Street Journal – China Central Bank Floods Money Market China’s central bank has flooded the local money market with cash in recent days, stoking expectations that it may be signaling a broader monetary easing, just as it did two months ago. Since last week, the People’s Bank of China has ramped up its… Continue reading Monetary Easing Around The Globe
<Click on chart for larger image> The New York Times – Searing Sun and Drought Shrivel Corn in Midwest Across a wide stretch of the Midwest, sweltering temperatures and a lack of rain are threatening what had been expected to be the nation’s largest corn crop in generations. Already, some farmers in Illinois and Missouri… Continue reading Drought Devastating Crops, Driving Prices Higher
The Financial Times – Wealthy hit hardest as France raises taxes France’s socialist government announced a big one-off increase in wealth taxes on Wednesday, by far the biggest single element in a €7.2bn package of new levies aimed at meeting this year’s budget deficit target that also included surcharges on banks and energy companies. The… Continue reading France Taxes The Rich
Charts of the Week Topics Covered This Week Include: Retail Still Hates Stocks Here Comes Earnings Season The Fiscal Cliff An Updated Look At Stock Market Correlation J.P Morgan’s Big Unwind? Bank Loans Commodities A Look At Gold Heatwave Impacts Food Prices A Look At Home Prices A Look At Retail Gas Prices Two-Year Treasury… Continue reading Charts of the Week
The Wall Street Journal – Spain Says Aid May Flow Straight to Banks The final terms of up to €100 billion ($125.76 billion) of European Union aid for Spanish banks will probably allow the funds to be channeled directly to the banks, the Spanish finance minister said Tuesday, thus protecting the government’s already fragile finances… Continue reading The Spanish Bailout
The Wall Street Journal – Bond Rift Divides Merkel Coalition The increasingly radical measures needed to tame the euro-zone debt crisis are leading to a growing rift within German Chancellor Angela Merkel’s governing coalition. Ms. Merkel’s junior partner, the pro-business Free Democratic Party, is angry about the mounting hints in Berlin that Germany might ultimately… Continue reading European Union
<Click on chart for larger image> MarketBeat (WSJ Blog) – Earnings Preview: Companies Getting More Pessimistic With another earnings season on the horizon and Europe’s economy struggling mightily, investors are getting that queasy feeling once again. Companies have been slashing forecasts sharply the last few weeks, with Europe’s continued turmoil often being cited as one… Continue reading Earnings Season
<Click on chart for larger image> <Click on chart for larger image> The Financial Times – Heatwave threatens US grain harvest An intense heatwave is threatening havoc with this year’s US grain harvest, burning up hopes of blockbuster yields and sending prices soaring. Even a modest reduction in crops could send ripples through global food… Continue reading Heatwave Impacts Food Prices
Comment Yesterday Alan Blinder spoke about the Federal Reserve on Bloomberg Television (video above), noting that there is a civil war between the hawks and the doves regarding monetary policy. He suggested that the doves, including Bernanke, would love to do QE3 now. The problem is the hawks will have none of it. So, he… Continue reading Civil War At The Federal Reserve
Bloomberg.com – Manufacturing in U.S. Unexpectedly Contracted in June Manufacturing in the U.S. unexpectedly shrank in June for the first time since the economy emerged from the recession three years ago, indicating a mainstay of the expansion may be faltering. The Institute for Supply Management’s index fell to 49.7, worse than the most-pessimistic forecast in… Continue reading ISM Takes A Sudden Plunge