The Economist – The credit-rating outlook: A warning shot S&P’s bombshell means more politically than economically SCEPTICS have wondered how long America could use its control of the world’s reserve currency as an excuse to rack up huge debts. Now they may have their answer. On April 18th Standard & Poor’s (S&P), a credit-rating agency,… Continue reading More On The U.S. Negative Watch
Zero Hedge (blog) – Jim Grant Explains Why QE3 Is Coming Once again we are reminded why we like Jim Grant so much. From his latest Grant’s Interest Rate Observer (which, trust us, is worth the subscription): “Almost 30% of the respondents to a poll conducted by UBS a few weeks back said they anticipate… Continue reading Is QE3 Coming?
Bloomberg.com – China Yuan Forwards Predict Fastest Appreciation in Five Months Yuan forwards traded at the biggest premium to the spot rate in more than five months, reflecting speculation the central bank will allow faster currency gains to help tame inflation. More rapid appreciation may be a tool for curbing prices, Wang Yong, a professor… Continue reading The Yuan
Fortune – Stingy megabanks swimming in cash If the megabanks are so big on lending, why do their loan books keep shrinking? The biggest U.S. banks tell us they have spent the past quarter writing loans, renewing credit lines and generally being upstanding economic citizens. Bank of America says it provided consumers and businesses with… Continue reading Two Views Of Bank Lending
The Economist – American farmland: Sowing bubbles Regulators grow increasingly worried about steep cropland prices FINANCIAL regulators in America were criticised for doing too little about the country’s housing bubble. Now they face an early test of whether lessons have been learned: a farmland boom. The stakes are lower. America’s farms were collectively valued at… Continue reading A Farmland Bubble?
Bloomberg BusinessWeek – When Hedge Fund Owners Invest in Sports Teams It may be “a function of ego”—and it tends to send investment performance sliding John W. Henry, founder of futures trader John W. Henry & Co., became the principal owner of the Boston Red Sox in 2002. Two years later the team won its… Continue reading Hedge Funds: Buy A Sports Team, Watch Your Performance Go To Pot
The Financial Times – Taskforce to probe oil price manipulation A new US taskforce will investigate fraud in the oil and gas markets as soaring prices prompt accusations of profiteering and manipulation. “We will be vigilant in monitoring the oil and gas markets for any wrongdoing so that consumers can be confident they are not… Continue reading The Evil Speculators
The Economist – The euro area’s debt crisis: Latin lessons There is a model for how to restructure Greece’s debts AT FIRST sight, Greece’s debt crisis has taken another turn for the worse. Yields on its government bonds have soared, rising above 20% on two-year paper on April 18th. But what seems to be bad… Continue reading Greece
The Wall Street Journal – World Is Bitten by the Gold Bug The reason for gold’s ability to do well in any market lies in its recent role as a haven from concerns about the dollar, inflation and shocks in Europe, the Middle East and Japan. “Gold has more than one hat right now,” said… Continue reading The WSJ Figures Out Gold Is Rallying
The New York Times – Blackstone Says Plain L.B.O.’s Are Too ‘Pricey’ “There’s a lot of corporate competition that has come out of the woodwork,” he said. “That has made the plain vanilla buyout pricey.” Bankers and private equity officials have said for some time that while buyout firms have plenty of cash to put… Continue reading LBOs Too Expensive?
The New York Times – Nation’s Mood at Lowest Level in Two Years, Poll Shows Americans are more pessimistic about the nation’s economic outlook and overall direction than they have been at any time since President Obama’s first two months in office, when the country was still officially ensnared in the Great Recession, according to… Continue reading Americans Remain Sour About The Economy
The Financial Times – S&P cuts outlook on Fannie and Freddie debt Standard & Poor’s has cut the outlook on the triple A-rated debt of Fannie Mae and Freddie Mac after making the change for US government securities earlier this week. S&P’s move to cut its outlook to “negative” from “stable” raises concern about a… Continue reading Fannie And Freddie Follow The U.S. Government On Negative Watch