Reuters – Philly Fed factory activity index worst in 2-1/2 yrs A gauge of factory activity in the Mid-Atlantic region plummeted in August, falling to the lowest level since March 2009 and casting more doubts on the strength of the economic recovery, a survey showed on Thursday. The Philadelphia Federal Reserve Bank said its business… Continue reading Scary Economic News
The Economist – Fears over French banks: Panic in Paris Funding fears and nasty rumours have given French banks a torrid August First, French banks are particularly reliant on potentially flighty short-term wholesale funding, rather than on stickier deposits or long-term debt. One measure of this is the portion of long-term assets (such as mortgages)… Continue reading European Banks
The Economist – Hedge funds: Many unhappy returns A difficult year for many hedge funds may prove a fatal one for some WITH bold promises of strong returns in good times and bad, hedge funds have seduced many an investor. But as often happens when a courtship develops into something more serious, blind love has… Continue reading Hedge Funds
MSN/Money – Tempers flare on CNBC as market dives Anchors Jim Cramer and Simon Hobbs tussle about whether we could be in a ‘Lehman moment.’ Worries about European banks triggered a blistering argument Thursday morning between CNBC anchors Jim Cramer and Simon Hobbs. Tensions between the two have been growing lately, and everything exploded after… Continue reading Cramer Loses His Mind (Again)
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The Wall Street Journal – Fed Eyes European Banks Regulators Scrutinize Ability of Institutions’ U.S. Units to Fund Themselves Federal and state regulators, signaling their growing worry that Europe’s debt crisis could spill into the U.S. banking system, are intensifying their scrutiny of the U.S. arms of Europe’s biggest banks, according to people familiar with… Continue reading What Is Bothering The Markets Today? No One Knows Anything About European Banks
Comment Yesterday Jim Bianco was the guest in the first hour on the Bloomberg Radio show “On The Economy” with Sara Eisen. The interview was wide-ranging, covering the economy, Europe, the markets and the downgrade of Treasuries. Listen to the interview (total time 27:35)
SmartMoney.com – Gold’s Newest Believers Call them gold’s newest converts. Last week’s market upheaval following the unprecedented downgrade of United States debt has convinced some of gold’s most-skeptical bears to suddenly switch teams. Indeed, they helped drive some $2 billion into precious metals exchange-traded funds in the week ending August 10, marking five straight weeks… Continue reading Gold ETFs Draw Public’s Interest
Stanford Graduate School News – When They Are Wrong, Analysts May Dig in Their Heels Like oracles in the stock market, securities analysts come up with earnings estimates that are supposed to signal the worth of a company’s stock. But what happens when a company’s actual performance proves an analyst’s quarterly forecast is wrong? Instead… Continue reading Earnings Estimates
Bloomberg.com – Fed Dissenters Say Rate Pledge Sent Pro-Stocks Signal Two Federal Reserve policy makers said the central bank’s commitment to keep its benchmark rate near zero for two years may create a misperception it’s aimed at boosting stocks, which contributed to their opposition. Philadelphia Fed President Charles Plosser said in an interview yesterday that… Continue reading Isn’t This The Exact Message Bernanke Wanted To Send?
Reuters – Gov. Perry on Fed: ‘They Should Open Up Their Books’ Republican presidential candidate Rick Perry on Wednesday called for more transparency from the Federal Reserve to show that the U.S. central bank was not engaging in unspecified “improper” actions. Under Fed Chairman Ben Bernanke, the central bank has embarked on one of the… Continue reading More On Perry v Bernanke
<Click on chart for larger image> The Wall Street Journal – S&P Backs French Triple-A Rating A senior Standard & Poor’s Corp. analyst Thursday confirmed France’s triple-A rating and stable outlook for the country, dispelling investor fears that the top-notch grade of the euro zone’s second-largest economy may be at risk. “We’re confident in the… Continue reading S&P Affirms Its AAA Rating Of France