<Click on chart for larger image> The Wall Street Journal – Spanish Crisis Deepens The financial crisis threatening the Spanish government deepened Thursday as its borrowing costs hit a new euro-era high, touching levels that previously forced other euro-zone countries to seek sovereign debt bailouts. The move followed yet another sovereign credit downgrade and coincided… Continue reading Spanish Spreads Hit A 19+ Year Record
<click on picture to view video> Comment The video is a good two-minute synopsis of how the Euro bailouts work, or don’t work.
<click on chart for larger image> The Wall Street Journal – Risks Rise as Ties Fray Among European Banks The biggest threat to the survival of the euro may not be a Greek exit. It may be the Balkanization of Europe’s banking system…In an early sign of such fraying, France’s Crédit Agricole SA said Wednesday… Continue reading European Banks
<Click on chart for larger image> Reuters – Greeks withdraw cash ahead of cliffhanger vote Greeks pulled their cash out of the banks and stocked up with food ahead of a cliffhanger election on Sunday that many citizens fear will result in the country being forced out of the euro. Bankers said up to 800… Continue reading More Anecdotal Evidence Of Bank Runs In Greece
Bloomberg.com – Caroline Baum: Europe May Force Bernanke to Flip the Twist At what point, one wonders, do lower long-term rates stop promoting growth and start promoting recession? The yield curve serves as an inducement for banks to create credit. Banks borrow short, lend long and pocket the difference. At least they used to before… Continue reading To Twist Or Not To Twist, That Is The Question
The Wall Street Journal – The Stock Market’s ‘Seasonal Roadmap’ Looks Dicey If history is any guide, stock investors could be peeking into the eye of the storm.Stocks are essentially flat this morning in yet another low trading-volume session, as investors cautiously await big developments in Europe. First up is Italy’s bond auction tomorrow, followed… Continue reading Seasonal Trends
Bloomberg.com – The Regional Feds Need More Independence All the fuss about whether Jamie Dimon, the chief executive officer of JPMorgan Chase & Co., should remain on the New York Federal Reserve Bank board is missing a larger issue. The entire board is connected to the banking industry and needs reform. It is imperative that… Continue reading The Importance Of Federal Reserve Independence – Or Lack Thereof
Bloomberg.com – Former Derivatives Trader Wins $446,000 at World Series of Poker Andy Frankenberger, a former equity derivatives trader turned professional poker player, collected $446,000 with his second win at a World Series of Poker event.Frankenberger, 39, outlasted a field of 179 players to win the 17th event on the World Series schedule yesterday in… Continue reading Some On Wall Street Know How To Manage Risk
None Today
Charts of the Week Topics Covered This Week Include: The Myth of Cash On The Sidelines Has Now Revised Away The Myth of Cash On The Sidelines Has Now Revised Away – 2 What Is A “Household” And Why Are They Buying Treasuries? What Is A “Household” And Why Are They Buying Treasuries? – 2… Continue reading Charts of the Week
CNBC – Guess Who’s Buying All the Bonds? (It’s Not the Fed) Mom-and-pop investors, and not the Federal Reserve, have been the ones most responsible for driving the mad dash to government debt, according to newly released data. The Fed’s ambitious Treasury-buying program has pushed the central bank’s balance sheet to $2.83 trillion and, by… Continue reading Who Else Is Buying U.S. Treasuries?
<Click on picture to view interview> Comment Jim Bianco was on Bloomberg TV yesterday morning discussing the Federal Reserve. To view the interview click on the image above. To view any of our recent interviews click here. We also discussed our thoughts of more QE in our conference call last week. The Washington Post –… Continue reading Discussing The Federal Reserve