The New York Times – Behind a Rise in Auto Sales, Easier Credit Detroit is crowing that the auto industry is back, but so far, at least, it is a success story built as much on a revival in lending as on the development of desirable cars. Sales of new cars rose 11 percent, to… Continue reading Shades Of 2005 To 2007 In Auto Lending
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Bloomberg.com – Fed May Need to Taper $600 Billion in Purchases, Bullard Says The Federal Reserve’s planned $600 billion in Treasury purchases helped improve the U.S. economic outlook and the policy debate may turn to whether to reduce the program scheduled through June, St. Louis Fed President James Bullard said. “The natural debate now is… Continue reading The Federal Reserve
<Click on chart for larger image> Zero Hedge (Blog) – GM, Held By 112 Hedge Funds, Slides Below IPO Price Congratulations Centrally Planned Garbage Motors: GM slides to below its IPO price, hitting $32.75. And now we get to see if GETCO has been swimming with no bathing suit on the entire time. Comment We… Continue reading GM’s Round Trip
The Financial Times – Lex: Oil: must recession follow price surge? Oil is up; will the economy go down? Sharp oil price rises (where monthly averages were more than 75 per cent higher than a year earlier) were followed by US recessions in 1974, 1980, 1990, 2000 and 2008. It could be time for a… Continue reading Crude Oil And Recessions
The Wall Street Journal – Dollar’s Haven Allure Slips on the Oil Patch But the latest bout of market angst, spurred by revolutions and unrest in the Middle East and North Africa, hasn’t prompted a similar rally. In fact, the opposite has occurred. That illustrates a key difference between this wave of risk aversion and… Continue reading Crude Oil And The Dollar
CNN Money – Gas prices: Brace for another surge Gas prices are up nearly 6 cents this week and analysts say this is just the beginning, as oil prices soar on political strife in North Africa and the Middle East. “We’ve got another 10 to 15 cents of catching up to do in the next… Continue reading How High Will Retail Gas Prices Go?
Business Insider – David Rosenberg: Forget Oil And Inflation, The Real Story Is In The Bond Market David Rosenberg expands on a point we just made, that if you dig beneath the oil spike and its knock-on effect on inflation, the real story right now is deflation: What is fascinating is to see what the… Continue reading Is Deflation The Real Problem?
The Wall Street Journal – China’s Stealth Investments in Japan China’s government-wealth investors last year more than doubled their investments in major Japanese blue-chip companies, with combined stakes totaling more than 1.6 trillion yen ($19.4 billion), according to investment-advisory firms and people familiar with the matter. The stakes—purchased mostly through obscurely named, Australian-registered investment vehicles—appear… Continue reading China Is Investing In Japan
Bloomberg.com – Fannie Mae, Freddie Mac Seek $3.1 Billion Amid Improved Earnings Freddie Mac and Fannie Mae, the mortgage-finance companies operating under U.S. conservatorship, requested another $3.1 billion in Treasury Department aid as they reported quarterly earnings reflecting improving health. Fannie Mae reported net income of $73 million for the three-month period that ended Dec.… Continue reading The Giant Money Pit Known As Fannie And Freddie
The Wall Street Journal – Banks Bristle at Mortgage-Loan Plan The banking industry privately knocked the Obama administration’s nascent proposal to force banks to modify mortgage loans, saying the plan won’t help solve problems facing troubled borrowers. The nation’s largest banks haven’t yet seen a proposal that is designed to help resolve mortgage-servicing errors that… Continue reading Mortgage Mods
The Wall Street Journal – Budget Battles Roil Straitened States It’s shaping up to be a year of fierce budget battles in state capitals across the U.S. To close budget gaps and rescue under-funded pension programs, most states are contemplating sweeping changes in how they fund their operations and compensate state workers. The states’ fiscal… Continue reading The States And Their Budget Mess