<Click on chart for larger image> The Wall Street Journal – Banks Face Funding Stress European Institutions Resort to Potentially Risky Swaps to Generate Liquidity European banks, increasingly concerned about their ability to access funding, are devising complex and potentially risky new deals that enable them to continue borrowing from the European Central Bank. The… Continue reading European Bank Funding
<Click on chart for larger image> The Wall Street Journal – European Bonds Under Pressure Spain was forced to offer record euro-era yields at its government bond auction Thursday, reflecting investors’ demands for higher-risk premiums as Europe struggles to contain its sovereign-debt crisis. The auction results escalated concerns that large economies previously considered safe bets… Continue reading Your Daily Update On European Bonds
The Wall Street Journal – Oil Pipeline Sale Pushes Up Prices The sale of an oil pipeline running from Oklahoma to Texas upended U.S. energy markets Wednesday, sending the price of crude surging above $100 a barrel as America copes with the promise and pitfalls of its new energy boom. Enbridge Inc.—which bought a 50%… Continue reading WTI/Brent Spread Narrowing
<Click on chart for larger image> The Wall Street Journal – Deficit Stalemate Signs Rise One week before Congress’s deficit-cutting supercommittee hits its deadline, and with signs of stalemate increasing, lawmakers Wednesday grappled with the consequences of possible failure. Some lawmakers pushed to water down automatic budget cuts that kick in if the panel fails,… Continue reading The Debt Ceiling
Bloomberg.com – How Household Debt Contributes to Unemployment The weakness in household balance sheets and the associated pullback in spending are directly responsible for the lion’s share of employment losses in the U.S. economy. This deficiency remains the most significant impediment to a robust recovery. Our research suggests that 65 percent of the job losses… Continue reading Household Debt & Unemployment
The Wall Street Journal – Fitch’s Warning Spooks Investors In the latest sign of jittery markets racked by hair-trigger selling, investors on Wednesday took fright at a credit-firm report that contained little new information but warned of escalating risks facing U.S. banks in the European debt crisis. Fitch Ratings, in a paper issued Wednesday afternoon,… Continue reading The Rating Agencies
Pimco – Tony Crescenzi: Ben Bernanke: The Decider In light of the limited risks posed to inflation by the swath of idle bank reserves as well as interest rate levels that today are as low octane fuel, it has been better that the Bernanke Fed acted than not. In this vein, Teddy Roosevelt, the 26th… Continue reading PIMCO Praises Bernanke
The Financial Times – Central bank gold buying at 40-year high Central banks made their largest purchases of gold in decades in the third quarter, as a sharp drop in prices in September accelerated the shift to bullion as a means of diversification. The scale of the buying, at 148.4 tonnes on a net basis,… Continue reading Are Central Banks Buying Gold As A ‘Put Against The Idiocy Of The Political Cycle’?
Business Insider – Guess What: Prosecutions For Financial Fraud Have Fallen To New Lows Under Obama The biggest decline appears to have been during former President George W. Bush’s eight-year term, but the downswing continues under President Obama. There is also a chance that the number of prosecuted cases could have dropped off in the… Continue reading Financial Fraud Prosecutions
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Charts of the Week Topics Covered This Week Include: U.S. Debt Tops $15 Trillion French 10-Year Yields Soar Relative To Germany Greek & Spanish Yields v German Yields Stop And Watch Europe – The Lowest Volume Of The Year EU Banking Stress Economic Forecasts Are Still Coming Down Recession? The Decline Of Manufacturing Jobs In… Continue reading Charts of the Week
<Click on chart for larger image> The Financial Times – Eurozone bonds hit by mass sell-off Eurozone bond markets suffered a mass sell-off on Tuesday as investor fears spread beyond Italy and Spain to triple A rated France, Austria, Finland and the Netherlands. The premium that France and Austria pay over Germany to borrow rose… Continue reading Europe