The Wall Street Journal – U.S. Lays Out AIG Exit Plan American International Group Inc. on Wednesday entered into an agreement with the U.S. government that details, among other things, the rights the Treasury Department will have as it begins to sell its controlling stake in an accelerated exit plan. The Treasury is aiming to… Continue reading AIG
The Wall Street Journal – Investor Survey Says: Bet Oppositely When the American Association of Individual Investors’ weekly gauge of sentiment hits the tape early Thursday, much of Wall Street will be ready to pore over the numbers. “It’s the first thing I check—I look at it every week, and I think it’s very, very… Continue reading Sentiment
The Wall Street Journal – Firms, Funds Feel Squeeze of Low Rates Historically low interest rates are starting to take a toll throughout the financial industry, presenting a potential downside to the Federal Reserve’s aggressive efforts to reignite growth in the sluggish economy. Rock-bottom rates are squeezing profit margins at banks that rely on the… Continue reading The Costs Of Low Rates
The Financial Times – Euro’s woes should spark monetary system rethink The international monetary system suffers from two fundamental flaws: The use of national or regional currencies to manage international liquidity and the exclusion of emerging markets currencies. The first is reminiscent of an old criticism associated with the Triffin dilemma – the inherent conflicts… Continue reading The International Monetary System
Bloomberg.com – Caroline Baum: Bernanke’s 21-Month U-Turn Takes 60 Minutes He probably wishes he hadn’t said it, the part about the Federal Reserve not printing money and his 100 percent confidence in his ability to raise interest rates at the appropriate time to prevent an acceleration of inflation. But he did. The Fed does (print… Continue reading Bernanke’s 60 Minutes Interview: Then And Now
Charts of the Week Topics Covered This Week Include: Are Rates Rising For The Wrong Reasons? More on Inflation Expectations Muni Update Capital Gains And The Deficit Hedge Fund Returns 1998 – Current A Few More Interesting Charts On Hedge Funds ETF Assets Update European Borrowing Costs Threaten Lower Equity Returns European Short-Term Rates In… Continue reading Untitled
In a recent post on hedge fund flows and mutual fund flows we concluded with the following: [T]he flows out of mutual funds and ETF’s suggest the average investor has not benefited from QE2 as much as the wealthy investor who has put cash into hedge funds for the past three quarters in a row.… Continue reading Capital Gains And The Deficit
Bloomberg.com – Banks in Europe Fail Market Tests for Stress With No Authority In the five months after the U.S. published results of its 2009 bank stress tests, the Standard & Poor’s 500 Financials Index rose 25 percent. Five months after the European Union released its version, the Bloomberg Europe Banks and Financial Services Index… Continue reading Europe
Bloomberg.com – Tax Cuts May Spur U.S. Economy, Cut Need for Fed Purchases President Barack Obama’s agreement to prolong Bush-era income-tax cuts may reduce pressure on the Federal Reserve to extend its $600 billion bond-purchase program while spurring U.S. economic growth. Obama’s deal with congressional Republicans may raise gross domestic product next year by as… Continue reading How Does The Tax-Cut Deal Affect The Economy?
<Click on chart for larger image> The Wall Street Journal – Investors Pile Into Commodities Investors are holding their biggest positions on record in the commodities markets as prices surge and debate intensifies among U.S. regulators about whether to limit the amount that any one trader can bet in markets for energy, metals and agricultural… Continue reading Commodities
<Click on chart for larger image> The Financial Times – Threats of supply pressure in US muni market Supply pressure is likely to increase in the $2,800bn municipal bond market if federal subsidies for infrastructure financing are not extended from their year-end expiry, an official of the US Treasury said on Tuesday. “In the same… Continue reading Munis