The Economist – The euro-zone crisis, again: Still crazy after all these yields Ireland’s plan for a brutal fiscal adjustment has done nothing to appease panicky bond markets. Portugal is also in their sights Such signs of distress may foreshadow a buyers’ strike that would eventually force both countries to turn to the European Financial… Continue reading More On The Eurozone Crisis
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The Financial Times – Fed plans big December debt purchase US Treasuries rallied on Wednesday after the Federal Reserve Bank of New York said it would purchase $105bn of bonds by December 9, reversing an earlier sell-off. The purchase amount, the first of a massive monetary easing programme dubbed “QE2”, was in line with many… Continue reading A POMO A Day Keeps The Bear Market Away
The Wall Street Journal – ‘QE2’ in the Dock: Some Yields Are Going Up The Fed’s latest “quantitative easing” program is designed to bring down interest rates, but some are moving up instead. But many observers are waiting for the Fed to at least start the program before making any judgments about it. The rise… Continue reading Will QE2 Actually Drive Rates Down Further?
<Click on chart for larger image> The Wall Street Journal – Ireland and Portugal Stir New Wave of EU Debt Worry Irish and Portuguese bonds came under increased pressure as the dimming fortunes of the euro zone’s weaker economies stirred fears that other countries besides Greece may need a bailout. The selloffs showed that investors… Continue reading European CDS Update
Pimco.com – Paul McCulley: A Kind Word for Ben Ever since, as noted at the outset, Chairman Bernanke has come under attack, particularly from international quarters, as one of the transmission mechanisms from QE2 (indeed, the anticipation of it) to “easier financial conditions” is a weaker foreign exchange value for the dollar. But this is… Continue reading In Defense Of Bernanke
Propublica.org – The Dukes of Moral Hazard: The Dangers of Quantitative Easing Thank the Federal Reserve. The central bank has embarked on its program of “quantitative easing,” a second round of experimental monetary policy in which the Fed buys up assets — like longer term government bonds — to bring down interest rates, which is… Continue reading QE2 And Moral Hazard
The Financial Times – Alan Greenspan: The eurozone’s stark lessons for the G20 America is also pursuing a policy of currency weakening. The suppression of the renminbi and the recent weakening of the dollar are, of necessity, producing firming exchange rates in the rest of the world to, as they see it, the rest of… Continue reading Greenspan Speaks
The Wall Street Journal – How to Shut Down Fannie and Freddie Although Fannie Mae and Freddie Mac played a central role in causing the recent economic crisis, they are absent from the reform plans of Congress and the Obama administration. So these two government-sponsored enterprises (GSEs) remain mired in conservatorship, as extensions of the… Continue reading Fannie & Freddie
Opalesque – Goldman Sachs to pull out $120m from Falcone’s Harbinger Capital, Blackstone submits withdrawal notice too Philip Falcone’s Harbinger Capital Partners, once one of the biggest hedge funds in the world, is having a terrible year. First, its flagship fund, the Harbinger Capital Partners Fund has fallen by 15% YTD (through Oct. 15, 2010).… Continue reading Phil Falcone
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Charts of the Week Topics Covered This Week Include: POMO’s Positive Effect … On Everything Market Cap to GDP Update Earnings, Elections And QE2 Comparative Performance Post-Quantitative Easing Jackson Hole’s Industry Group Impact Gold Soars! U.S. Convertibles: High-Yield Remains High-Beta Corporate Yield Curve Spreads Distorted By Treasury Market Interest Rate Analogs: Getting Right With Friedman… Continue reading Untitled