The Financial Times – Greece: when the lights go out The government had hoped to raise €1.7bn-€2bn from the levy in the fourth quarter of last year. But a massive unions-led civil disobedience movement against this “injustice” scuppered that and a ruling that it was illegal to disconnect people’s electricity supply for non-payment sent the… Continue reading More On Greece
<Click on chart for larger image> The Financial Times – Rajoy warns Spain faces market exile Spain’s prime minister warned his country risked being shut out of the financial markets unless it was allowed to press ahead with its package of deficit cuts, as yields on the country’s debt jumped. Speaking in parliament on Wednesday,… Continue reading Spain
CNBC.com – As One JPMorgan Trader Sold Risky Contracts, Another One Bought Them For hedge funds that could smell blood in the water, it seemed to be an opportunity to take on JPMorgan Chase and win. It was, in fact, such a sweet trade that even another part of the bank couldn’t pass it up.… Continue reading Looking At The J.P. Morgan Trade
Bloomberg Businessweek – How will JPMorgan’s $2B loss affect banking rules? The $2 billion trading loss at JPMorgan Chase has renewed calls for stricter oversight of Wall Street banks. Two years after Congress passed an overhaul of financial rules, many of those changes have yet to be finalized. JPMorgan’s misstep gives advocates of stronger regulation… Continue reading What Will Happen To Bank Regulation After The J.P. Morgan Loss?
The Financial Times – Martin Wolf: Era of a diminished superpower What will be the role of the US in the 21st century? This is a question I rashly agreed to address last week at the Carnegie Council in New York. In analysing it, I considered a closely related issue that also exercises Americans: is… Continue reading The U.S. Economy
<Click on chart for larger image> Bloomberg.com – Unlocking the Crude Oil Bottleneck at Cushing The U.S. oil infrastructure is the product of four decades of rising imports and falling domestic supply. As those trends have reversed over the last few years, America’s network of pipelines has failed to keep pace. Designed in part to… Continue reading Crude Oil Inventories
<Click on chart for larger image> The Wall Street Journal – Currency Markets Rev Up Currency markets are becoming volatile again thanks to turmoil in Europe, leaving some investors bracing for an even wilder ride to come. This week, the euro hit a four-month low against the dollar, and the Australian dollar—which just months ago… Continue reading Currency Market Volatility
The Financial Times – How Keynes would solve the eurozone crisis Almost 100 years ago, a young official in the UK Treasury sought to advise European policy makers on how daunting external debts might best be managed. There was, he argued, a limit to the national capacity to service debts. Those expecting further payments were… Continue reading How Would John Keynes Solve The Eurozone Crisis?
None Today
The Wall Street Journal – Jonathan Macey: Losing Money Isn’t a Crime Regulators, politicians and news reporters are hysterical at the news of J.P. Morgan’s recent $2 billion trading loss. The Securities and Exchange Commission is investigating to see whether laws were broken. We appear to be on the verge of making it a crime… Continue reading How Jamie Dimon Might Lose His Job This Summer
The Wall Street Journal – J.P. Morgan Moves to Protect Dimon J.P. Morgan Chase & Co. closed ranks around Chief Executive James Dimon ahead of a shareholder meeting and announced the departure of a senior executive at the center of a trading blunder that has cost the bank more than $2 billion in losses. President… Continue reading More on Jamie Dimon
Chicago Real Estate Daily – Rents rise again in sizzling downtown apartment market Downtown apartment rents hit another high in the first quarter, and more hikes may be in the offing amid a red-hot rental market. The average effective rent at top-tier, or Class A, downtown apartment buildings rose to $2.50 a square foot in… Continue reading Will Soaring Rents Lead To Higher Core Inflation?