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What Is a “Household” and Why Are They Buying Treasuries?
June 12, 2012
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 What Is a “Household” and Why Are They Buying Treasuries?
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The Treasury Continues To Lengthen The Average Maturity Of Its Debt
June 12, 2012
<Click on chart for larger image> Real Time Economics (WSJ Blog) – Treasury Intends to Continue to Lengthen Average Maturity The U.S. Treasury intends to continue to gradually extend the average maturity of the securities it issues–a tactic that locks in borrowing costs but potentially dilutes the impact of a Federal Reserve policy intended to… Continue reading The Treasury Continues To Lengthen The Average Maturity Of Its Debt
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Net Worth
June 12, 2012
<Click on chart for larger image> Real Time Economics (WJS Blog) – Family Net Worth Fell Almost 40% Between 2007-2010 Families’ median net worth fell almost 40% between 2007 and 2010, down to levels last seen in 1992, the Federal Reserve said in a report Monday. As the U.S. economy roiled for three tumultuous years,… Continue reading Net Worth
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Planning For A Greek Exit
June 12, 2012
Reuters.com – EXCLUSIVE – EU floats worst-case plans for Greek euro exit: sources European finance officials have discussed as a worst-case scenario limiting the size of withdrawals from ATM machines, imposing border checks and introducing capital controls in at least Greece should Athens decide to leave the euro. EU officials have told Reuters the ideas… Continue reading Planning For A Greek Exit
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Spain’s Bailout Falls Flat
June 12, 2012
Comment Jim Bianco was on CNBC yesterday talking about the Spanish Bank bailout. To view the interview click on the image above. To view any of our recent interviews click here. <Click on chart for larger image> The Wall Street Journal – Spain’s Bailout: More Questions Than Answers It took less than half a day… Continue reading Spain’s Bailout Falls Flat
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Fiscal Union Needed In Europe
June 12, 2012
The Wall Street Journal – The Next Step for Europe Is Financial Union The crisis has shown that Europe’s economic and monetary union is incomplete: The single currency needs to be supported by a financial union. Our banks today are euro-zone banks—not German, Spanish or French banks. They can borrow from the European Central Bank… Continue reading Fiscal Union Needed In Europe
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Debt At U.S. Banks
June 12, 2012
The Wall Street Journal – U.S. Banks Face Different Sort of Debt Dilemma With the euro-zone crisis intensifying, debt markets are closed to plenty of European banks. Across the Atlantic, it is a different story: While U.S. banks have no problem selling long-term debt, they often aren’t keen to do so. Awash in deposits, many… Continue reading Debt At U.S. Banks
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What Did Jamie Dimon Know?
June 12, 2012
The Wall Journal – J.P. Morgan Knew of Risks Warning Flags Raised Two Years Ago About Trading Desk That Lost $2 Billion Interviews with more than a dozen current and former members of the bank’s Chief Investment Office, the unit responsible for the losses, indicate that discussions about reining in London traders started as early… Continue reading What Did Jamie Dimon Know?
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Cartoons
June 12, 2012
The Spanish Bailout Explained With One Image (h/t Zero Hedge)
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The Myth Of Cash On The Sidelines Has Now Been Revised Away
June 11, 2012
Real Time Economics – Number of the Week: Corporations Not Hoarding Cash $496.5 Billion: How much less cash U.S. corporations had at year-end 2011 than previously believed. The Federal Reserve on Thursday came out with its quarterly “flow of funds” report, which for two years now has reflected the steady increase in the amount of… Continue reading The Myth Of Cash On The Sidelines Has Now Been Revised Away
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Spain Receives A Bailout
June 11, 2012
The Wall Street Journal – Latest Europe Rescue Aims to Prop Up Spain Spain’s acquiescence to a bailout of as much as €100 billion ($125 billion) for its banks is a prelude to a much bigger question: Will Spain need a bailout for itself? Some say Spain faces a daunting struggle convincing reluctant creditors that… Continue reading Spain Receives A Bailout