Politico (Blog) – Treasury: Debt ceiling deadline is real The Treasury Department is swatting down reports that the deadline to raise the debt ceiling could be shifted from early August to the end of that month, saying that at most the drop-dead date to hike the limit might be only a few days later than… Continue reading August 2nd Or Bust
<Click on chart for larger image> <Click on image to view video> Bloomberg.com – Banks’ Appetite for Jumbos May Soften Blow of New Loan Limits The new limits, which will vary by locale, apply to loans backed by government-controlled Fannie Mae and Freddie Mac, the two largest mortgage-finance companies in the country, and the Federal… Continue reading New Loan Limits For Mortgages May Mean A Drop In Jumbo Mortgages
The Wall Street Journal – Fed Extends Lending Program for Central Banks The Federal Reserve, amid persistent worries about Europe’s sovereign debt crisis, last week quietly approved the extension of a crisis-lending program that allows the European Central Bank to tap the U.S. for dollars, Federal Reserve Bank of St. Louis President James Bullard said.… Continue reading The Federal Reserve Extends Lending Program For Central Banks
The New York Times –$8.5 Billion Deal Near in Suit on Bank Mortgage Debt Bank of America is completing an agreement to pay $8.5 billion to settle claims by investors that purchased mortgage securities that soured when the housing bubble burst, according to people briefed on the deal. It represents what is likely to be… Continue reading BofA
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Reuters – Christopher Whalen: Did the FDIC really kill the repo market Back in April 2011, Jim Bianco penned a commentary, “Why The Federal Reserve May Have A Hard Time Raising Rates.” He argued that the increase in the FDIC insurance assessment rate for large banks adds to bank funding costs, and thus offsets the… Continue reading The Repo Market
<Click on chart for larger image> The Financial Times – Dollar seen losing global reserve status The US dollar will lose its status as the global reserve currency over the next 25 years, according to a survey of central bank reserve managers who collectively control more than $8,000bn. More than half the managers, who were… Continue reading The Dollar’s Status As World Currency Reserve
The Wall Street Journal – Big Losses Hang Over Some European Insurers Insurance companies across Europe are sitting on large portfolios of bonds issued by financially shaky governments and banks, raising concerns that some insurers could fall victim to the Continent’s financial crisis. Before Europe’s fiscal crisis erupted last spring, many insurance companies gorged on… Continue reading Insurance Companies On The Hook
The Wall Street Journal – Lawrence Lindsay: The Deficit Is Worse Than We Think Washington is struggling to make a deal that will couple an increase in the debt ceiling with a long-term reduction in spending. There is no reason for the players to make their task seem even more Herculean than it already is.… Continue reading The Deficit
<Click on chart for larger image> The Financial Times – IEA reserves release disrupts crude spreads The release of the Western countries’ petroleum strategic stocks has triggered significant disruption to one of the most popular relative-value trades among physical oil traders: the price differential between Brent crude and Dubai crude. The spread between lower quality,… Continue reading The Fallout Of The SPR’s Release Of Crude Oil
Benzinga Radio – (audio) Bianco Research’s Bianco explains how companies game earnings announcements Comment We have frequently commented about the gaming of earnings and revenues as well as the track record of guidance. Second quarter results will begin being released in two weeks. <Click on chart for larger image> <Click on chart for larger image>… Continue reading Gaming Earnings
<Click on chart for larger image> MarketBeat (WSJ Blog) – Alas, the Third Quarter Is Often Ugly for Stocks, Too US stocks have suffered in June, but there may not be much relief ahead: The third quarter usually isn’t very good either. The S&P 500 has fallen average of 0.9% during the quarter since 1990,… Continue reading Stock Seasonality