The Financial Times – Central banks need a bigger and bolder mandate In the wake of the global financial crisis, there is an emerging consensus that the framework underpinning central banking, known as inflation targeting, is too narrow. The crisis is a stark reminder that a monetary policy framework focused on price stability will also affect financial stability through… Continue reading Inflation Targeting Is Not Enough
The Telegraph (UK) – Angela Merkel pleads for Germany to approve plans to increase European bail-out fund Angela Merkel has appealed to German politicians to approve Europe’s rescue efforts ahead of a crucial vote that could torpedo the Brussels summit The German Chancellor, who on Tuesday must secure the Bundestag’s approval before European bail-out plans… Continue reading Fixing Europe
Bloomberg.com – Banks Clash With Lawmakers on Greek Rescue Banks are pushing back against European leaders on the size of losses they are ready to accept on Greek bonds as officials struggle to rescue the debt-laden country while avoiding a default. There are limits “to what could be considered as voluntary to the investor base… Continue reading Greek Debt Haircuts
The Financial Times – Ray Dalio: Risk on the rise as political leaders give in to mob rule We are in the midst of a deleveraging, we are nearly out of ammunition and we are at each other’s throats. Being in a deleveraging and nearly out of ammunition is a very difficult position to be… Continue reading Ray Dalio
The Wall Street Journal – Fed Official Backs New Growth Push A top Federal Reserve official suggested Monday that the central bank could take further action to try to boost economic growth, including more securities purchases. “The Fed is doing—and will continue to do—everything in its power to promote jobs and price stability,” Federal Reserve… Continue reading Dudley Assures Us The Federal Reserve Has Not Run Out Of Bullets
The Wall Street Journal – ‘Dark Pool’ Settlement Shines Light on Potential Abuses Regulators dragged a “dark pool” trading platform into the light, settling charges that the firm was running a secret affiliate that sought to trade ahead of customers’ orders before filling “a vast majority” of them on the private market. Pipeline Trading Systems… Continue reading Dark Pool Trading
The Guardian – Vatican joins calls for crackdown on financial markets If Vatican cardinals have yet to join the Occupy Wall Street protesters, a document released by the Holy See calling for a “world authority” to crack down on capitalism suggests some are considering it. Written by the Vatican’s Pontifical Council for Justice and Peace… Continue reading Is The Vatican About To Occupy Wall Street?
The Wall Street Journal – Lean Companies Ready to Cut Despite another quarter of robust corporate profits, an ominous impulse is stirring at many big companies—restructuring. In a sign that executives see a rockier road ahead, many manufacturers are setting aside money to fund moves aimed at cutting costs and streamlining operations. Those steps could… Continue reading Earnings Season
<Click on chart for larger image> The New York Times – Paul J. Lim: The Sunny Side of Doom and Gloom No wonder that investors have shown little confidence in the staying power of the latest rebound, which since Oct. 3 has lifted stock prices by 13 percent, leaving the S.& P. at 1,238. Last… Continue reading The Market’s Range
“If there isn’t a solution by Sunday [October 23] , everything is going to collapse,” he [Nicolas Sarkozy]told his inner circle before an emergency trip on Wednesday night [October 19] to see German Chancellor Angela Merkel in Frankfurt – October 19, 2011 The Independent (UK) – Clashes as Euro leaders take to the field Germany:… Continue reading Now The Drop Dead Date For the EU Is Wednesday
The Financial Times – Wolfgang Münchau: Europe is now leveraging for a catastrophe It is time to prepare for the unthinkable: there is now a significant probability the euro will not survive in its current form. This is not because I am predicting the failure by European leaders to agree a deal. In fact, I… Continue reading Will Europe Get It Right?