The Associated Press – Fannie Mae seeks $8.5 billion more in federal aid Fannie Mae asked the government Friday for an additional $8.5 billion in aid after declining home prices caused more defaults on loans guaranteed by the mortgage giant.Fannie Mae asked the government Friday for an additional $8.5 billion in aid after declining home… Continue reading Fannie/Freddie Need More Government Money
<Click on chart for larger image> NMHC – Apartment Sector Sets Records In Market Tightness And Equity Availability, NMHC Market Conditions Survey Finds The apartment industry’s recovery continues briskly, according to the National Multi Housing Council’s (NMHC) latest Quarterly Survey of Apartment Market Conditions. The Market Tightness Index, which examines vacancies and rents, rose to… Continue reading Rents Are Going Up Again, Core Inflation To Follow?
The New York Times – N. GREGORY MANKIW: If You Have the Answers, Tell Me How long will inflation expectations remain anchored? In 1967, Milton Friedman gave an address to the American Economic Association with this simple but profound message: The inflation rate that the economy gets is, in large measure, based on the inflation… Continue reading What Do Economists Know?
Bloomberg.com – Euro Holds No. 1 Spot as EU Shows Resolve on Greece Debt European Union leaders are showing their resolve in keeping the euro region together, agreeing in an unannounced meeting on May 6 to review the terms of the 110 billion-euro ($158 billion) lifeline Greece received last year. The euro tumbled 3.45 percent… Continue reading Europe
<Click on chart for larger image> The Associated Press – Why junk bond rally should be cheered — and feared Not just stocks are hot. Why the junk bond rally is good for the economy, bad for investors Here’s a markets riddle for you: What has jumped in value more than its biggest fans expected… Continue reading Junk Beats Stocks
<Click on chart for larger image> Zero Hedge (blog) – BOJ Warns Monetization May Lead To Severe Inflation, Rise In Long-Term Interest Rates; Yet Will Buy ¥350 Billion In Bonds Comments from the BOJ April 6 – 7 Monetary Policy Meeting Minutes: One member — referring to some recent views that the Bank should underwrite… Continue reading Is The Bank of Japan Finally Creating Inflation?
The Financial Times – Commodity hedge fund loses $400m in oil slide Clive Capital, the world’s largest commodity hedge fund, has been left nursing losses of more than $400m as a result of the collapse in the price of oil last week. London-based Clive – which manages an estimated $5bn of client money – is… Continue reading Last Week’s Losers
The Independent (UK) – Nouriel Roubini: ‘We haven’t seen the last of financial crises’ He is the economist they call ‘Dr Doom’. But if Nouriel Roubini is pessimistic, it’s for good reason. Sean O’Grady meets him Opposite the suite of offices held by Roubini Global Economics in London is the Shaftesbury Theatre, currently host to… Continue reading This Just In … Roubini Is Worried
The Financial Times – Lex: Sick currencies: which is most ill? Currencies are like mad aunts or errant younger brothers. No matter how awful they become, they’re relatives. And that is the number one problem in the arguments of currency alarmists everywhere. Those predicting the end of the dollar, for example, rarely say against which… Continue reading Sick Currencies
None Today
<Click on chart for larger image> FT Alphaville (FT Blog) – Honey, I broke the repo market As a reminder, the introduction of a new fee on banks in April by the US Federal Deposit Insurance Corporation sparked a slump in the government repo market, knocking that general collateral rate. And then at the start… Continue reading Repo Rates
The Financial Times – Lex: European Central Bank Words can cost money. On Thursday, the euro dropped two cents against the US dollar, all for the lack of two little words on the lips of Jean-Claude Trichet. Going into the European Central Bank’s monthly meeting, foreign exchange analysts suggested that a rise in its central… Continue reading The ECB Joins The Federal Reserve In Hoping For A Gradual Exit Strategy