Charts of the Week Topics Covered This Week Include: Defending And Attacking QE2 The Arms Race to Own U.S. Treasuries Trouble In Muni Land Muni Yields As A Percentage of Treasury Yields Short-Term Interest Rates: Resistance Realized After QE2 Unexpectedly Low Short-Term Rates Reappeared Briefly Yuan And Long-Term Treasury Note Volatility Partial Contribution Of Ten-Year… Continue reading Untitled
Bloomberg.com – Fed Would Trim Purchases Only on Strong Economy, Bullard Says The Federal Reserve would reduce its planned purchases of $600 billion in Treasuries only after a substantial improvement in the U.S. economy, St. Louis Fed President James Bullard said. “The economy would have to improve a fair amount before the whole committee would… Continue reading When Will The Federal Reserve Tell Us What $600 Billion In QE2 Is Supposed To Accomplish?
The New York Times – Warren Buffett: Pretty Good for Government Work Let me remind you why I’m writing. Just over two years ago, in September 2008, our country faced an economic meltdown. Fannie Mae and Freddie Mac, the pillars that supported our mortgage system, had been forced into conservatorship. Several of our largest commercial… Continue reading Buffett’s Self-Serving Statements
Bloomberg.com – Fed May Hesitate on More Easing After Critics Question Mandate The Federal Reserve is facing the fiercest political assault on its powers in three decades as it struggles to help revive the U.S. economy. The Fed’s plan to expand its purchases of Treasury securities has triggered criticism from Republican lawmakers, some economists who… Continue reading More Critics Of The Federal Reserve
<Click on chart for larger image> Telegraph.co.uk (UK) – Ambrose Evans-Pritchard:The horrible truth starts to dawn on Europe’s leaders The entire European Project is now at risk of disintegration, with strategic and economic consequences that are very hard to predict. In a speech this morning, EU President Herman Van Rompuy (poet, and writer of Japanese… Continue reading PIIGS
The Wall Street Journal – China Continued Net Buying Of US Treasurys In Sept China continued net purchases of U.S. Treasurys for a third consecutive month in September on broad-based inflows into long-term U.S. assets, the Treasury Department said Tuesday. China’s holdings rose $15.1 billion to $883.5 billion, and the country maintained its position as… Continue reading TIC Flows
The Chicago Tribune- Gail Marks Jarvis: The party’s for stocks over — for now 2-month rally cools, but Christmas could revive investor spirits The stock market has entered the morning after, a time of sober reflection on the world’s economic problems after a two-month dance that lifted stocks 17 percent. From the end of August… Continue reading Is The Stock Market Rally Over?
Bloomberg.com – Caroline Baum: QE2 Pits Bernanke Against Obama Export Plan Obama wants the U.S. to become an export powerhouse. In other words, he’d like the country to be more like China. “Export growth leads to job growth and economic growth,” Obama said in announcing his export council in July. “At a time when jobs… Continue reading Obama And Bernanke
The Wall Street Journal – Richard Barley:QE’s Learning Curve for Investors The only way is up? The U.S. yield curve has steepened markedly since the Federal Reserve announced its decision to buy $600 billion of medium-term Treasurys, with the gap between two-year and 30-year yields at record levels around 3.86 percentage points. That move points… Continue reading Rising Treasury Yields
The Wall Street Journal – U.S. Sets 50 Bank Probes The Federal Deposit Insurance Corp. is conducting about 50 criminal investigations of former executives, directors and employees at U.S. banks that have failed since the start of the financial crisis. The agency responsible for dealing with bank failures is stepping up its effort to punish… Continue reading Punishing U.S. Bankers
Bloomberg.com – `Dim Sum’ Debt Shows Yuan Opening Amid Hot Money Crackdown The yuan may rise 6.2 percent to 6.26 per dollar by the end of next year, the most among the so-called BRIC nations that also include Brazil, Russia and India, according to a Bloomberg survey of 17 analysts. The median estimate is for… Continue reading The Yuan
Bloomberg.com – Mohamed A. El-Erian:Three Reasons Global Talks Hit Dead End First, the summit played down disagreements by producing a statement that has something for everyone. This attempt at short-term expediency can easily backfire. After all, it is hard for China, Germany, the U.S. and others to make a solid case at home for compromises… Continue reading Mohamed El-Erian Speaks