<Click on chart for larger image> The Financial Times – Martin Wolf: Europe must not allow Rome to burn Confronted with turbulence in the provinces, the eurozone has sent in new governors. In place of the wayward George Papandreou, Greece now has Lucas Papademos, former vice-president of the European Central Bank. Instead of the unruly… Continue reading Italy
The Wall Street Journal – US Stocks Drop As Investors Keep Eye On Italy Trading volume was lighter than usual. About 3.04 billion shares changed hands in New York Stock Exchange composite volume, marking the lowest volume day since May 27 and fourth lowest of the year. The total was roughly 30% below the average… Continue reading Stop And Watch Europe – The Lowest Volume Of The Year
Reuters – France draws fire after “alarm bells” warning France came under heavy fire on global markets on Tuesday reflecting fears that the euro zone’s second biggest economy is being sucked into the debt crisis after a warning that Paris’s inability to adapt should be “ringing alarm bells”. Nervous markets also showed concern about whether… Continue reading France
Bloomberg.com – North Dakota Oil Output Approaching OPEC Level: Chart of the Day Surging crude output in the Bakken shale formation is set to make North Dakota a bigger oil producer than OPEC member Ecuador. The CHART OF THE DAY tracks North Dakota’s production, which has almost doubled in the past two years, as Ecuadorean… Continue reading North Dakota’s Oil Production
Bloomberg.com – Fed Officials Show Divisions Over Need for Additional Easing Federal Reserve officials aired divisions over whether the central bank should wait to see if the economy deteriorates before taking further steps to reduce borrowing costs and lower unemployment. More action “may be needed” to reduce “persistently high unemployment,” San Francisco Fed President John… Continue reading The Federal Reserve Is Still Divided
The Wall Street Journal – N.Y. Fed Asks Primary Dealers for More Margin on Some Mortgage Securities The Federal Reserve said it will be increasing collateral requirements on 21 primary-dealer banks in transactions dealing with mortgage-backed securities, in a move that would be aimed at securing an extra layer of protection against settlement risks with… Continue reading A Margin Hike For Primary Dealers
<Click on chart for larger image> MarketWatch.com – The euro is dead. Long live the euro. Commentary: The euro’s actual behavior has defied expectations “Those who think that the euro is doomed are just not focusing on these many benefits” that the euro has created, according to Dessauer. In arguing that the EMU will continue… Continue reading The Euro
None Today
<Click on chart for larger image> <Click on chart for larger image> The Financial Times – Jump in Italian and Spanish yields spooks stocks Italy’s 10-year bond yield once again soared above the 7 per cent mark and French yields hit a record spread over German Bunds, causing global markets to tumble and underlining the… Continue reading European Yields
Bloomberg Businessweek – Fed Economists Say Odds of Early 2012 U.S. Recession Exceed 50% The odds of a U.S. recession in early 2012 exceed 50 percent as a result of Europe’s debt crisis, according to researchers at the Federal Reserve Bank of San Francisco. “Prudence suggests that the fragile state of the U.S. economy would… Continue reading The Odds Of A Recession
The Wall Street Journal – A Short Econ Quiz for the Super Committee Suppose that year after year, your government spends more than it collects in taxes. You are worried that it’s become fiscally irresponsible. Which of the following could be a path back to fiscal sanity for your government? A) Spend less. B) Collect… Continue reading Some Advice For The Super Committee
<Click on chart for larger image> Bloomberg.com – Manufacturing America’s New Middle Class Given how desperately the U.S. needs jobs, it’s amazing how little effort Congress and the president devote to revitalizing manufacturing, the most potent of all job creators. For more than 30 years now, economists and policy makers have instead worshipped the false… Continue reading The Decline Of Manufacturing In The U.S.