The Wall Street Journal – Debt-Crisis Vote Goes Down to Wire in House The House was headed for a cliffhanger vote Thursday on a revised debt plan from Republican Speaker John Boehner that could go a long way in determining if the government’s borrowing limit is raised in time to avoid a possible default next… Continue reading The Debt Ceiling Debates Continue
<Click on chart for larger image> The Wall Street Journal – Heading for a ‘Haircut’ The debt stalemate in Washington is creating stress in a little-known but vital corner of the bond market, increasing the risk that banks, hedge funds and other investors will have to pay billions of dollars in additional costs if the… Continue reading Repo Costs On The Rise
<Click on chart for larger image> The Wall Street Journal – A Hedging Tool Loses Its Edge Banks and investors relying on credit-default swaps to protect themselves against a European government reneging on its debt payments are finding that the insurance isn’t such a sure thing after all. European leaders went to great lengths to… Continue reading The Problem With Sovereign CDS
Real Time Economics (WSJ Blog) – Fannie, Freddie Eligible to Take Part in Fed Facility Government mortgage lenders Fannie Mae and Freddie Mac are now eligible to participate in a Federal Reserve facility designed to drain liquidity from the financial system. The Federal Reserve Bank of New York said Wednesday that following an announcement in… Continue reading Fannie & Freddie Allowed To Play In Repo Market
The Wall Street Journal – Warren Buffett Is Wrong On Taxes During Monday night’s national address, President Obama recited the Buffet line that millionaires and billionaires pay lower tax rates than their secretaries. Democrats in Congress routinely cite Mr. Buffett’s tax confessions as irrefutable evidence that tax rates on the very rich are too low… Continue reading Tax Rates
Charts of the Week Topics Covered This Week Include: Beyond August 2 Clearinghouse Moves Earnings Season Swings Into Action Brent Is The New Benchmark Italy Sovereign Debt Update Home Prices Update Core Inflation Less Housing Nears Decade Highs A Look At Foreign Net Purchases Of U.S. Assets Money Market Funds and Money Supply Update Money… Continue reading Untitled
Reuters – Is US default deadline truly Aug 2? Analysts say no Will the sky fall on Aug. 2 if the U.S. Congress fails to raise the debt ceiling? Not likely, according to analysts, who say that even without the ability to borrow more money, the government could avoid a devastating default for another week… Continue reading Beyond August 2
The Wall Street Journal – Robin Hood Can’t Lead Us Out of the Debt Hole One possible package of reforms would include setting the U.S. corporate and estate tax rates permanently to zero. These taxes are inefficient and generate little revenue. Also, to restore a more efficient allocation of capital across the economy, we should… Continue reading More On The Debt Ceiling And A U.S. Downgrade
Bloomberg.com – Bernanke May Need to Stay ‘Above Politics Federal Reserve Chairman Ben S. Bernanke has steered clear of the political brawl over raising the U.S. debt limit. Lawmakers say he should keep his distance. The central banker would risk angering politicians and roiling markets should he get involved in talks, recommend a specific tax… Continue reading Bernanke And The Debt Ceiling
<Click on chart for larger image> Bloomberg.com – Money Funds’ Risk Rises Over Debt Cap Debate, Moody’s Says The impasse in Washington over raising the federal debt ceiling has exposed U.S. money-market mutual fund clients to increased danger, according to Moody’s Investors Service.“Direct risks include the potential for a missed interest or principal payment on… Continue reading Money Market Funds And A U.S. Downgrade
<Click on chart for larger image> The Wall Street Journal – Companies Bracing for U.S. Default The unthinkable is finally becoming reality for U.S. companies, who are beginning to take real steps to prepare for the possibility of a U.S. debt default. While companies generally expect Washington to resolve the debt-ceiling impasse at the last… Continue reading U.S. Companies And A U.S. Default