The Financial Times – Gavyn Davies: US immune from eurozone contagion so far The Fed’s continuing preference for extremely easy monetary policy in the US has prevented the financial tightening from crossing the Atlantic. The absence of any tightening in financial conditions in the US during the recent crisis stands in sharp contrast to what… Continue reading Contagion
Bloomberg.com – Don’t Count on Housing Market to Lead Recovery What will the New Year bring for housing markets? Prediction is a perilous business, but history and basic housing economics suggest that price changes will stay modest, and that construction will increase only slowly. The best that can be said about the current market is… Continue reading Housing
The Financial Times – Europe’s trust breakdown Data from the European Central Bank showed that banks tapped its emergency credit lines to the tune of €15bn overnight, for the third time in a week. At the same time, a record €453bn was put on deposit back at the ECB by banks unwilling to take any… Continue reading European Banks
The Wall Street Journal – France Clears Bond Auction France raised almost the maximum intended amount at a bond auction Thursday, shrugging off concerns that the country may lose its top credit rating. The French Treasury Agency raised €7.963 billion ($10.31 billion), having offered €7 billion to €8 billion in the 3.25% October 2021, 4.25%… Continue reading France’s Bond Auction
The Wall Street Journal – Congress Presses Rating Firms Congressional investigators are stepping up their inquiry into how deeply credit-rating companies examined the disastrous bet that sank MF Global Holdings Ltd. and whether the firms overlooked crucial information in their evaluations, according to people familiar with the matter. The chairman of the House Financial Services… Continue reading Rating Firms In Hot Water Again
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Charts of the Week Topics Covered This Week Include: The January Effect Not “Too Many Bears” Among Stock Market Newsletters European Bank Deposits Still At ECB Deposit Facility A Look At Credit Spreads A Look At Volume A Look At Home Prices Election Update: Romney Wins Iowa Hedge Funds LIBOR Money Market Funds Measuring Gold’s… Continue reading Charts of the Week
<Click on chart for larger image> The Washington Post – Why do stock prices rise every January? New year optimism January optimism is sentimental — and sentiment-based arguments are generally ignored by academic researchers who frown upon claims that clash with their ideas of market efficiency. In perfect markets, prices convey all available information about… Continue reading The January Effect
The Wall Street Journal – Romney Ekes Past Santorum to Win Iowa Mitt Romney pulled out a razor-thin victory by just eight votes in the Iowa caucuses, edging out Rick Santorum and opening the Republican primary season with a dose of momentum going into a New Hampshire primary he is heavily favored to win. Mr.… Continue reading Romney Wins Iowa, Is The Nomination Process Over?
The Wall Street Journal – Fed Will Detail Rate Plans, Easing Market Guesswork “It should lead to more informed judgments about the course of Fed policy. It could mean less volatility in markets,” he said. The Fed faces potential pitfalls. One is the risk that the new communications policy will distort markets. Critics accuse the… Continue reading More Changes At The Federal Reserve!
<Click on chart for larger image> The Wall Street Journal – Banks’ Deposits at ECB Reach New High Banks’ deposits at the European Central Bank’s overnight facility reached a new all-time high Tuesday, while borrowing from the overnight lending facility marginally increased compared with Monday. Banks parked €453.18 billion ($591 billion) in the ECB’s overnight… Continue reading European Bank Deposits At ECB Hit New Record
The Big Picture (Blog) – Barry Ritholtz: Investing in 2012: Get ahead of forecaster folly The new year has arrived, and so investors are inundated with all manner of lists: Best and worst stocks for 2012, forecasts of where the economy is going, favorite investments for the year and more. What’s an investor to do?… Continue reading Investing In 2012