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July 1, 2011
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Bloomberg.com – Institutions Pull Most From Prime Money Funds Since March 2010 on Greece Institutions pulled out of U.S. prime money-market funds at the fastest pace in 15 months, shifting to funds that invest only in U.S. government-backed securities out of concern the European debt crisis would worsen. Institutional funds eligible to buy corporate debt… Continue reading Prime Money Market Funds
StreetInsider.com – With QE2 Ending, Speculators Envision a QE3 ‘Cap’ With QE2 coming to an end tomorrow, the Federal Reserve has been mum on the possibility of QE3. However there is a growing belief the next inevitable foray by the central bank into the market will not just involve another X-billion dollar bond buying program,… Continue reading The Prospects For QE3
<Click on chart for larger image> The Wall Street Journal – Greek Relief May Be Short-Lived Global markets have dodged a bullet. Greece has voted “yes” to more austerity, paving the way for the disbursement of €12 billion ($17 billion) in bailout loans and avoiding a messy default. The vote in the end was relatively… Continue reading Greece
<Click on chart for larger image> The New York Times – Despite Fears, Owning Home Retains Allure, Poll Shows Owning a house remains central to Americans’ sense of well-being, even as many doubt their home is a good investment after a punishing recession. Nearly nine in 10 Americans say homeownership is an important part of… Continue reading Long Live The American Dream
The Wall Street Journal – As QE2 Sets Sail, Bond Rally Sinks Just as the Federal Reserve is about to step away from the market, the months-long Treasurys rally is showing signs of pulling back…The poorly received auctions raised eyebrows ahead of Thursday’s official finish of the Federal Reserve’s second bond-buying initiative, a $600 billion… Continue reading We Will Miss You, QE2
Real Time Economics (WSJ Blog) – Fed Swap Line Extension Sign of Caution, Not Increased Demand If nothing else, the Federal Reserve‘s announcement Wednesday of an extension in its dollars-for-euros swap line with the European Central Bank was well timed. It came as investors were fixated on the Greek parliament’s skin-of-its-teeth vote to approve an… Continue reading The Federal Reserve Extends Its Swap Line With ECB
Wrapping It Up: June 27- July 1 Topics include limits to monetary policy, fixed-income volatility, Eurodollar forward curve, pseudo-real corporate rates, corporate bond ETFs and natural gas utilities……Continue Reading
<Click on chart for larger image> The Financial Times – Greece Faces ‘suicide’ vote on austerity It came as Athens police fired tear gas after protests at the severity of the measures imposed by the European Union and International Monetary Fund turned violent. Speaking to the Financial Times, Mr Provopoulos expressed concern that Greece’s economic… Continue reading All Eyes On Greece
The Financial Times – Washington’s fiscal recklessness rules out QE3 Will there be life after QE2? Fed chairman Ben Bernanke first introduced this new monetary policy last year on August 27 at the Fed’s annual conclave in Jackson Hole, Wyoming. It terminates at the end of this month after the Fed purchased $600bn in US… Continue reading Life After QE2
<Click on chart for larger image> The Wall Street Journal – Don’t Jump at Case-Shiller Bounce There’s a good reason not to get too excited about Tuesday’s report from Standard & Poor’s on the Case-Shiller home price index: As sure as the sun comes up in the morning, home prices will rise in April. The… Continue reading Home Prices See A Springtime Bounce But Fall YoY