The Wall Street Journal – Bernanke to Open Up as Fed Embarks on Era of Glasnost Next Wednesday, Federal Reserve Chairman Ben Bernanke will do something no Fed chief has done before: Stand before a room full of journalists after officials conclude a policy meeting and answer questions about the central bank’s decisions. Washington churns… Continue reading Bernanke Takes Center Stage Next Week
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The New York Times – Casey Mulligan: Who Cares About the Fed? Short-term interest rates have an obvious effect on the housing market, but not the rest of the economy. Federal Reserve policy affects short-term interest rates, bank regulation and eventually inflation. I will write about inflation next week, and my fellow Economix blogger Simon… Continue reading Should The Federal Reserve Raise Rates?
The Washington Post – U.S. credit rating downgrade: the Armageddon scenario A credit rating downgrade for the United States would spell even more financial trouble for the U.S. government, hampering its ability to borrow money as investors demand higher yields to make up for the increased risk. That would cause its national debt to balloon… Continue reading More On S&P’s Warning
The Wall Street Journal – Austerity Chills the Ardor for Muni Debt Lately, when state and local governments have borrowed, they have borrowed less.The median municipal-bond deal in the first quarter was $5 million, the lowest since 1999, according to figures analyzed by market data provider Ipreo for The Wall Street Journal. In 10 of… Continue reading Muni Debt
Prudent Bear (Blog) – Debt debacle The IMF’s Global Financial Stability Report, released Wednesday, said global financial stability had improved in the last six months. They must be the only people who think so. In reality, the U.S. budget deficit has widened in spite of the economic recovery, the financial services sector is undertaking ever… Continue reading Global Debt
<Click on chart for larger image> Bloomberg.com – Greek Yields Surge to More Records; Spanish Bonds Rise After Debt Auction Greek, Irish and Portuguese bonds fell as a German official said Greece will probably have to restructure its debt as its financing costs rise. German ten-year bunds fell for a second day as equities rose,… Continue reading Sovereign Debt
Bloomberg.com – Banks Lag S&P as Slower Loan Growth Outweighs Higher Dividends Bank stocks are underperforming the Standard & Poor’s 500 Index, even after Federal Reserve stress tests showed some financial institutions have regained enough strength to boost dividends and buy back their shares. A lack of loan growth and increased costs from new regulations… Continue reading Financials Are Underperforming
Gains Pains & Capital – Graham Summers: A Crisis That’s Four Times Bigger Than 2008 The financial world is awash with a debate as to whether the Fed will engage in QE 3 in the future. To me this debate is pointless. Indeed, the Fed HAS to engage in more QE 3 if it doesn’t… Continue reading Does QE3 HAVE To Happen?
Cnn Money – Mortgage denied: Sometimes, for no good reason Getting a mortgage just keeps getting tougher, and many homebuyers are getting rejected for loans they could easily afford. The issue: Tighter standards from Fannie Mae and Freddie Mac, the government entities that back mortgages made by banks.Banks are reluctant to make loans without the… Continue reading Obtaining A Mortgage Is Still Tough
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Conference Call Presentation/Charts of the Week Audio Webcast Topics Covered This Week Include: Summary/Highlights Inflation Expectations: Pick The One That Shows No Problems Worrisome Inflation Signs Have “Second Order” Inflation Effects Arrived? Have “Second Order” Inflation Effects Arrived? -2 Deficits And Inflation Money And Credit vs Inflation The Yield Curve And Inflation Banking And Credit… Continue reading Untitled