Bloomberg.com – Fed Gave Banks Crisis Gains on $80 Billion Secretive Loans as Low as 0.01% Credit Suisse Group AG (CS), Goldman Sachs Group Inc. (GS) and Royal Bank of Scotland Group Plc (RBS) each borrowed at least $30 billion in 2008 from a Federal Reserve emergency lending program whose details weren’t revealed to shareholders,… Continue reading Taxpayers’ Money Hard At Work
The Financial Times – Watch out for a short, sharp end to the business cycle [A]s is often the case, the most thought-provoking contribution comes from the bears who fret that the next recession could be just around the corner. Perhaps the most powerful contribution comes from Jim Reid of Deutsche Bank in his excellent… Continue reading Timing The Business Cycle
<Click on chart for larger image> Fox News – German Gas Station Charges $40 A Gallon to Deter Customers German drivers were left stunned Tuesday after a gas station was caught charging €9.99 ($14.59) per liter in a bid to stop customers from filling up. The station was running low amid a nationwide shortage due… Continue reading Until You Have Paid $40 A Gallon For Gas, Stop Complaining
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Charts of the Week Topics Covered This Week Include: Is The Economy Softening? Is The Economy Softening? – 2 Is The Economy Softening? – 3 What Are The Odds Of QE3? Inflation Fears Rising – So The Fed Will Now Ignore It What Foreigners Buy U.S. Treasuries? What Foreigners Buy U.S. Treasuries? – 2 Volume… Continue reading Untitled
<Click on chart for larger image> The Telegraph (UK) – Greece crisis worsens amid political stalemate Greece’s debts are expected to hit 150pc of GDP this year, the highest in Europe, on top of a 10.5pc budget deficit. It has already begun retrenchment to reduce the deficit to 7.5pc this year, including €50bn of privatisations.… Continue reading EU Contagion
<Click on chart for larger image> Spiegel Online – ECB’s Balance Sheet Contains Massive Risks While Europe is preoccupied with a possible restructuring of Greece’s debt, huge risks lurk elsewhere — in the balance sheet of the European Central Bank. The guardian of the single currency has taken on billions of euros worth of risky… Continue reading The ECB’s Balance Sheet
MarketWatch.com – Why Bernanke will be forced to institute QE3 Assume that I am incorrect, and the Fed doesn’t embark on a new round of QE. Where will money go? I believe there is sufficient demand from institutional and foreign sovereign buyers to keep the market up and keep yields low, despite growing price inflation.… Continue reading QE3
<Click on chart for larger image> The Wall Street Journal – BOJ Open to Further Stimulus Measures Bank of Japan Gov. Masaaki Shirakawa indicated Wednesday that he is open to additional steps to stimulate economic growth in the aftermath of the March 11 earthquake and tsunami, while saying that he sees some positive economic signs… Continue reading The BOJ Is Open To More Stimulus
The Wall Street Journal – OECD: Most Central Banks Should Raise Rates Central banks around the world should start or continue to raise their key interest rates as the economic recovery beds down and inflation rates pick up, the Organization for Economic Cooperation and Development said Wednesday. In its twice-yearly report on the global economic… Continue reading Should Central Banks Raise Rates?
The Wall Street Journal – Banks Face $17 Billion in Suits Over Foreclosures State attorneys general told five of the nation’s largest banks on Tuesday they face a potential liability of at least $17 billion in civil lawsuits if a settlement isn’t reached to address improper foreclosure practices, according to people familiar with the matter.… Continue reading U.S. Banks
The Financial Times – CFTC charges traders over oil price The US commodities regulator has charged a trading house and two individuals with manipulating oil prices in 2008 by amassing dominant positions in the physical market that created the impression of a shortage. The charge is only the second oil manipulation case the US Commodity… Continue reading We Have Finally Caught Those Evil Speculators!