The Guardian (UK) – Cost of Greek exit from euro put at $1tn UK government making urgent preparations to cope with the fallout of a possible Greek exit from the single currency The British government is making urgent preparations to cope with the fallout of a possible Greek exit from the single currency, after the… Continue reading More On A Euro Breakup
Real Time Economics (WSJ Blog) – Fed Now Holds Very Few Short-Dated Treasurys Thanks to Operation Twist sales, RBC notes that the Federal Reserve is entering a period with very little holdings of short-maturity Treasurys to roll into upcoming auctions. The Treasury sells 2-, 5- and 7-year notes next week, and Fed currently owns less… Continue reading The Effect Of Operation Twist
Bloomberg.com – Several on FOMC Said Easing May Be Needed on Faltering Several Federal Reserve policy makers said a loss of momentum in growth or increased risks to their economic outlook could warrant additional action to keep the recovery going, minutes of their last meeting showed. The members of the rate-setting Federal Open Market Committee… Continue reading The Markets Tumble…Time To Hype The QE Machine
The Financial Times – Cameron fears eurozone unravelling David Cameron, Britain’s prime minister, will on Thursday warn that the single European currency could unravel in a way that “carries huge risks for everyone” unless the eurozone’s 17 members move rapidly towards full fiscal and political union. “The eurozone is at a crossroads,” Mr Cameron will… Continue reading Can The Eurozone Ever Become A Full Fiscal & Political Union?
Business Insider – Moody’s Will Downgrade Up To 21 Spanish Banks Today According to Spanish news site Expansion, Moody’s will make a massive downgrade of Spanish banks today that could affect as many as 21 firms. That report cites multiple anonymous sources, and says that the announcement wil likely be made at 9 PM local… Continue reading Will Spanish Banks Be Downgraded Later Today?
The Wall Street Journal – Allan H. Meltzer: Banks Need More Capital, Not More Rules The U.S. economy can’t grow unless investors are free to finance risky assets The J.P. Morgan mistakes that resulted in a loss of $2 billion or more have awakened some senators to the fact that the Dodd-Frank financial-regulation legislation of… Continue reading Banking Regulation
The Wall Street Journal – Pledge Week at the Fed The ire over a trading stumble at J.P. Morgan shows how little taxpayers enjoy standing behind too-big-to-fail institutions. Remarkably, the same Federal Reserve that didn’t blow the whistle on J.P. Morgan’s “whale” trades is planning to make more such institutions. The exercise is part of… Continue reading More Firms Will Soon Join The Too-Big-To-Fail Club
The Financial Times – JPMorgan exposes the imperial CEO myth This February, as JPMorgan Chase financial traders in London were building a credit derivatives position that would soon cost the bank $2bn, Jamie Dimon was otherwise occupied. He was on a 550-mile bus ride through Florida. Mr Dimon took a week-long tour of Chase branches… Continue reading The Emperor Has No Clothes
h/t The Big Picture Blog
Conference Call Presentation/Charts of the Week Audio Topics Covered This Week Include: Summary/Conclusion The Euro Is The Problem Germany And U.S. Stocks Greece, Italy And Spain Stock Markets A Run On The Greek Banks? Corporate Deposits In Eurozone Spanish Interest Rates Italian 10-Year Rates When Italian Margins Were Hiked Are Spain’s Margins Going To Be… Continue reading Conference Call Presentation/Charts of the Week
<Click on chart for larger image> Comment The chart above is updated through May 14. It shows the debt ceiling limit (red line), the actual debt accumulated (blue line) and a linear regression of debt growth since the limit was last raised on January 31. The linear regression has a 99% correlation with accumulated debt.… Continue reading More Evidence A Debt Ceiling Fight Is Coming Before The Election?
<Click on chart for larger image> Comment The chart above shows the monthly level of deposits in Greek banks through the latest release, March 31. The Wall Street Journal – As Bank Withdrawals Surge, Athens Relies More on ECB Greek depositors withdrew €700 million ($898 million) from the country’s banks on Monday, fueling fears of… Continue reading A Run On Greek Banks?