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June 20, 2012
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<Click on chart for larger image> The Wall Street Journal – Jon Hilsenrath: Fed Wrestles With How Best to Bridge U.S. Credit Divide The U.S. recovery is hobbled by an economic divide that separates Americans not by income or wealth but by their access to credit. The housing bust left behind millions of people with… Continue reading The Federal Reserve Mulls Its Options
<Click on chart for larger image> The Wall Street Journal – Spain Back in Cross Hairs The brief afterglow from Greece’s vote Sunday to try to remain in the euro was quickly extinguished by a cascade of bad news out of Spain that again rattled faith in the currency bloc’s ability to support its most… Continue reading Spain
The Financial Times – Finance: A union to bank on To give life to a such a federation requires even greater political sacrifices than those made to create the single currency in the 1990s. The political fight is only beginning. And the most difficult issue of all – getting wealthy countries to pay for this… Continue reading Examining The Problems Of A Euro Fiscal Union
The Wall Street Journal – Three Reasons Greece Still Word on the Street Here is a guide to the transmission mechanisms that will ensure that any euro-conflagration becomes a U.S. and global issue: Banks: U.S. financial chiefs have been claiming that they have gotten out of “peripheral Europe”—the dreaded Piigs of Portugal, Ireland, Italy, Greece… Continue reading European Exposure
The Washington Post – Q&A: Supreme Court’s decision on Obama’s health care law unlikely to be the last word Q: What if the Supreme Court upholds the law and finds Congress was within its authority to require most people to have health insurance or pay a penalty? A: That would settle the legal argument, but… Continue reading Obama’s Health Care Mandate
The Wall Street Journal – Greek Clash With Germany on Bailout Looms Greece appears headed for a new clash with Germany over its rigid bailout program as the winners of Sunday’s Greek election prepare to ask Europe for more time to cut public spending. Greece’s conservative New Democracy party and its likely Socialist coalition partner,… Continue reading With Greek Elections Now Decided, What Comes Next?
Zero Hedge (Blog) – As Part Of Its NEW QE Q&A, Goldman Warns Of Possibility For $50-$75 Billion “Flow” Program Q: How large will the program be? A: If it is specified as a “stock” of purchases, we would expect a similar size as in past programs, i.e. $400bn-$600bn over 6-9 months. However, it is… Continue reading Goldman Examines QE Stock vs. Flow Argument Again
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The Financial Times – New Democracy ekes out win in Greece Greece’s centre-right New Democracy party scrapped its way to victory over Syriza, its radical leftist opponents, on Sunday in an election pivotal to the efforts of European leaders to hold the eurozone together. According to interior ministry projections, with 97 per cent of votes… Continue reading Greek Elections Over, Still Waiting For Its Outcome
Bloomberg.com – Fed Seen Twisting to Risk Management to Spur U.S. Growth Federal Reserve officials must choose this week between their best estimates and their worst fears of what will happen to the U.S. economy. Policy makers will bring new forecasts to their June 19-20 meeting and probably will mark down their April central-tendency estimate… Continue reading Will The Federal Reserve Extend Operation Twist? We Say No
Reuters.com – Spain suffers as sentiment sours post-Greek election Spanish bond yields hit a new euro-era high above seven percent and Italian yields jumped on Monday as initial relief after a pro-bailout victory in Greek elections gave way to pessimism about the huge problems still facing the currency bloc. The swift reversal in sentiment saw… Continue reading Spanish 10-Year Yields Spike