Zero Hedge (Blog) – Moody’s Unhappy With Friday Euro Summit, To Review Ratings, Warns Of “Multiple Defaults And Exits By Euro Area Countries” The main weight on the EURUSD this morning is not only the virtual certainty of S&P cutting Europe’s AAA club, after it called Europe’s bluff and Europe revealed a 2-7 offsuit, but… Continue reading Moody’s Joins The Party
The Wall Street Journal – Holman W. Jenkins Jr.: Making the Next Bailout the Last Ben Bernanke is worried about whether the Fed has the political capital to do it all again Unfortunately, government, having empowered itself in the crisis, is doing what government does. It is taking more, not less, control in telling banks… Continue reading The Federal Reserve
The Financial Times – Edward Luce: Gingrich promises a clash of ideas – whichever they are In a recent New Yorker cartoon, a couple are watching a televised Republican debate. “He could be psychotic,” says the husband, “or he could be appealing to the base”. Right now no one is doing the latter more effectively… Continue reading Gingrich Continues To Gain
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The Wall Street Journal – Tensions Rise at EU Summit Mr. Draghi had also poured cold water on proposals to allow Europe’s national central banks to channel money to governments via third parties such as the International Monetary Fund or Europe’s bailout funds. He stressed that the ECB abides by the “spirit” of its founding… Continue reading Europe Leads U.S. Stocks
Reuters.com – Europe’s disastrous summit I thought disasters were all meant to happen over the weekend? Somehow, in Brussels, EU leaders have contrived to pull defeat out of the jaws of victory on Thursday night, leaving Friday for finger-pointing and recriminations and wondering whether anybody who signed on to this deal has any chance at… Continue reading All About Europe
Yesterday the Federal Reserve released its quarterly Flow of Funds data, current through September 2011. One of the more popular headlines from this data concerns the record amount of “cash on the sidelines“. Through Q3 2011, nonfarm nonfinancial corporate businesses held $2.11 trillion in liquid assets on their balance sheets. As the argument goes, this… Continue reading The Myth Of Cash On The Sidelines – An Update
<Click on chart for larger image> The New York Times – Americans Got Much Poorer Last Quarter Americans got much poorer last quarter, as their collective household net worth suffered the biggest decline in three years. The total net worth of American households and nonprofit groups fell by $2.4 trillion in the third quarter of… Continue reading Household Net Worth Shrinks
<Click on chart for larger image> The Financial Times – Hedge funds’ year in the pain trade The pain has come in two forms: investments moving in tandem with one another and extreme shifts, up and down, in price.“Markets have been dominated by high correlations and continue to behave based on political decisions,” says Jeff… Continue reading Blame Hedge Fund Performance On Correlation In The Markets
Bloomberg.com – Chinese Crisis Gets Priced Into Markets Perhaps investors aren’t as complacent about China as previously thought. In the latest Bloomberg Global Poll, 61 percent of them predicted China will face a banking crisis within the next five years. That hardly means markets are betting on a meltdown. It does, however, suggest a level… Continue reading China
<Click on chart for larger image> The Wall Street Journal – A Market Resurfaces for ‘Junk’ Debt The market for below-investment-grade bonds issued by companies in emerging markets is picking up after lying dormant for months. This week, oil-and-gas producer Pacific Rubiales Energy Corp. and NII Holdings Inc. sold bonds rated in the “junk,” or… Continue reading Junk Bonds
Reuters.com – MF Global’s Corzine: I did not intend to break rules Jon Corzine said he “never intended to break any rules” while he was chief of MF Global and that he doesn’t know what happened to the hundreds of millions of dollars in missing customer money.Corzine, in his first public appearance since the firm… Continue reading Jon Corzine Speaks