The Wall Street Journal – AIG’s Major Share Sale Near American International Group Inc. said it expects to close an agreement with the U.S. government on Friday, paving the way for share sales that could eventually enable the insurer to end its status as a ward of the state. Preparations for what could be the… Continue reading AIG Wants Out From Under The Government’s Thumb
Bloomberg.com – Caroline Baum: Get a Model, Make a Guess, Cure Unemployment Just when you thought you’d heard the last of “jobs created or saved,” the Obama administration’s quarterly report card on its $814 billion fiscal stimulus, along comes the Federal Reserve with its own model-derived guesstimates. The Fed’s full menu of securities purchases, starting… Continue reading How Many Jobs Will The Government Save Today?
Bloomberg.com – EU’s New Drive to Contain Euro Debt Fire May Still Fall Short European leaders enter year two of their fight to contain the euro region’s debt woes still struggling to put out the fire. After committing almost $1 trillion, bailing out Greece and Ireland and asserting their determination to save the euro over… Continue reading Does Europe Need More Bailouts?
<Click on chart for larger image> The Financial Times – Kenneth Rogoff: Euro looks set to win the race to the bottom Entering 2011, our currency crystal ball doesn’t seem to be getting any clearer. All the major regions remain trapped in post-crisis macroeconomic strategies that are either inconsistent, incoherent, or both. US budget policy… Continue reading The Currency Race To The Bottom
None Today
Conference Call Presentation/Charts of the Week Topics Covered This Week Include: Is QE2′s Purpose To Create A Stock Market Bubble? The Latest On The Economy ECRI Weekly Index’ Divergences Closing Asset Return Differentiation In QE2 Era – Equities POMO And Stocks POMO And Emerging Markets Stocks And Credit Asset Return Differentiation In QE2 Era –… Continue reading Untitled
The Financial Times – Debate rages over muni bond defaults Warren Buffett has warned of difficulties ahead. So has hedge fund manager Jim Chanos and Meredith Whitney, who foresaw the problems at US banks ahead of the financial crisis. If they are right, then the $3,000bn US municipal bond market could be on the verge… Continue reading Muni Defaults
<Click on chart for larger image> Bloomberg Businessweek – Portugal Aid, Buybacks, Debt Rules Feature in EU Crisis Plan European governments are considering aid for Portugal, debt buybacks, lower interest rates on rescue loans and guarantees against excessive debt as part of a package to quell the financial crisis, according to two people with direct… Continue reading The EU Crisis
<Click on chart for larger image> The Wall Street Journal – New Move to Make Yuan a Global Currency China has launched trading in its currency in the U.S. for the first time, an explicit endorsement by Beijing of the fast-growing market in the yuan and a significant step in the country’s plan to foster… Continue reading The Yuan
The Wall Street Journal – Inflation Pulls Plug on Asia’s Emerging Markets Some of the best-performing markets of 2010 have started the new year with a disconcerting, inflation-inspired selloff. Stocks in emerging markets from India across Southeast Asia have taken their lumps the last few days as investors worry that central banks in the region… Continue reading Inflation and Asia’s Emerging Markets
Reuters – Could the U.S. central bank go broke? The U.S. Federal Reserve’s journey to the outer limits of monetary policy is raising concerns about how hard it will be to withdraw trillions of dollars in stimulus from the banking system when the time is right. While that day seems distant now, some economists and… Continue reading The Federal Reserve
The Wall Street Journal – Fed Officials Signal Intent to Back Bond Buys Charles Plosser, president of the Federal Reserve Bank of Philadelphia, was the latest to signal a desire for continuity from the Fed, even though he is highly skeptical of the program’s effectiveness. “I wish we hadn’t done it, but that doesn’t mean… Continue reading Federal Reserve Officials Back Their Own Policies