Newsclips
Cartoons
December 21, 2011
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The Financial Times – Bill Gross: The ugly side of ultra-cheap money Gresham’s law needs a corollary. Not only does “bad money drive out good,” but “cheap” money may as well. Ultra low, zero-bounded central bank policy rates might in fact de-lever instead of relever the financial system, creating contraction instead of expansion in the… Continue reading Financial Leaders Speak Their Mind
The Financial Times – Martin Feldstein: A weak euro is the way forward The large current account deficits of Italy, Spain and France can be reduced without lowering their incomes or requiring Germany to accept inflationary increases in its domestic demand. The key is to expand the net exports of those trade deficit countries to… Continue reading Is A Cheaper Euro Really The Answer?
The Financial Times – Short View: Potential bill for eurozone break-up For an idea of what’s happening within Europe’s banking system – and the havoc eurozone disintegration could wreak – it is useful to go straight to its technical heart. That would be Target2, Europe’s electronic payment system platform. It’s the eurozone’s financial plumbing and… Continue reading One Of The Hidden Costs Of A Eurozone Breakup
The Wall Street Journal – Just Don’t Call It a ‘Bailout’ Governments in Europe are tying themselves in knots to prop up their banks, desperate to blunt the cost and embarrassment of a fresh wave of taxpayer-funded bailouts. In Italy, for example, the government is encouraging banks to buy public properties that the banks then… Continue reading European Banks
The Wall Street Journal – Beware the Global ‘Equity Gap’ At a time when the world needs to maximize growth and shed debt, the barriers we place in the path of equity are perverse. In developed economies, tax policy continues to reward corporate borrowing, implicitly penalizing equity, and standards for measuring corporate performance encourage maximizing… Continue reading Mind The Gap
The Wall Street Journal – Dividend Stocks Become the Heroes This year, the 100 stocks in the Standard & Poor’s 500-stock index with the highest dividend yields are up an average of 3.7% before dividend payouts, according to Birinyi Associates. The 100 lowest-yielding stocks are down an average of 10%. Dividend yield is calculated by… Continue reading Dividend-Paying Stocks
<Click on chart for larger image> MarketBeat (WSJ Blog) – Happy First Birthday, Terrible Meredith Whitney Call MarketBeat has wrung pretty much all the schadenfreude it can get, and probably more, out of Meredith Whitney’s awful call on muni bonds, and we covered it fairly extensively again last week. But we could not let this… Continue reading A Year In Review: Meredith Whitney’s Muni Call
The Wall Street Journal – Japan Considers Buying Chinese Bonds Japan should consider holding Chinese government bonds to strengthen ties with its Asian neighbor, its finance minister said Tuesday, but analysts say such a step could be a move toward diversifying Japan’s foreign reserves, now mainly denominated in dollars. Finance Minister Jun Azumi made the… Continue reading Investing In Chinese Assets
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Reuters – Eurozone bank failures could cause U.S. credit squeeze: Kaufman Euro-zone bank failures could lead to a credit squeeze in the United States, hurting an already subpar U.S. economic recovery, warned the well-known Wall Street economist Henry Kaufman. A deterioration in the European financial system “could cause some of the American financial institutions to… Continue reading Europe
<Click on chart for larger image> Bloomberg.com – ECB Won’t Step Up Bond Purchases: Draghi European Central Bank President Mario Draghi damped expectations that the bank will step up bond purchases to tame the sovereign debt crisis, saying it can’t overstep its mandate. “People have to accept that we have to, and always will, act… Continue reading ECB Bond Purchases