Bloomberg.com – Caroline Baum: Fed Is Willing to Gamble on Short-Run Trade-Off Policy makers rely on econometric models to forecast things like GDP growth, inflation and the output gap, a squishy concept that’s supposed to reflect the difference between actual and potential GDP. It’s the perceived output gap — and particularly excess supply of labor… Continue reading Monetary Policy
Bloomberg.com – Greece Will Eventually Leave Euro Even With Bailout Agreement, Rogoff Says European leaders’ agreement to expand a bailout fund to stem the region’s debt crisis only buys time as Greece will likely still leave the euro in the next decade, Harvard University economist Kenneth Rogoff said.“It feels at its root to me like… Continue reading Ken Rogoff Speaks
h/t The Big Picture
Comment Jim Bianco was on Yahoo Finance yesterday discussing Europe, market correlation, the U.S. downgrade and China. To view the interview click on the image above. To view any of our recent interviews click here. Yahoo Finance – Stocks, Sentiment Seesaw as EU Summit Doubts Arise Stocks have given back early gains, only to reverse… Continue reading Jim Bianco On Yahoo Finance
The Wall Street Journal – EU Forges Greek Bond Deal European leaders said they secured a deal to reduce Greece’s debt after they labored overnight and into Thursday morning to find agreement on what they had billed as a blockbuster package to stem the Continent’s debt crisis. French President Nicolas Sarkozy said after the marathon… Continue reading A Deal Is Struck
The Wall Street Journal – Fed Ties Purse Strings of Banks J.P. Morgan Chase & Co. recently approached U.S. regulators about potentially buying back more of its shares but the giant bank was told it might not get the answer it wanted, according to people familiar with the situation. J.P. Morgan decided against submitting a… Continue reading The Federal Reserve Wants More Capital At U.S. Banks
Bloomberg.com – Ireland May Seek Ancillary Rewards from Greece’s Debt Failure Greece’s difficulty paying its debts may turn out to be Ireland’s opportunity. Greece’s failure to cut spending and boost revenue by enough to meet targets set by the European Union and International Monetary Fund prompted bondholders to accept a 50 percent loss on its… Continue reading If Greece Is Bailed Out, Ireland Wants To Renegotiate Its Own Bailout Terms
The Wall Street Journal – European Banks Look to Reassure on Capital Needs Europe’s banks sought to reassure investors Thursday that they won’t tap them for fresh capital needed under a €106 billion recapitalization plan designed to make the sector more resilient to sovereign shocks. Spanish, French and Italian banks need around €50 billion in… Continue reading EU Banks Must Raise Capital
<Click on chart for larger image> MarketBeat (WSJ Blog) – Investors Still Dumping Stock Funds, Even As Stocks Rally This month’s stock-market rebound isn’t getting investors to put fresh cash into the market. If anything, they’ve been doing some profit-taking. The latest data from ICI says domestic long-term mutual funds had net estimated outflows of… Continue reading Fund Investors Not Buying Into The Stock Rally
The Wall Street Journal – Europe Turns to Asia for Help With Bailout European officials have quickly turned to Asia to help bankroll their plan to ease Greece’s debt obligations and prevent its fiscal collapse—but it won’t be an easy sell. French President Nicolas Sarkozy was set to call his Chinese counterpart, Hu Jintao, just… Continue reading Asia To The Rescue?
The Wall Street Journal – Remedial Economics The Occupy Wall Street protests have drawn huge numbers of confused and directionless young people, but maybe that’s not all bad. Some of them at least seem to be getting a remedial course in economics. Nan Terrie learned an expensive lesson last week about the importance of property… Continue reading Occupy Wall Street & Wealth Redistribution
Merkel’s Timeline of What Is Needed To Save The Euro