Newsclips
Cartoons
September 17, 2010
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<Click on chart for larger image> The Financial Times – Greece rules out possibility of default Greece’s finance minister has strongly rejected the idea that Athens will be forced to restructure its debts, saying that a default would break the eurozone. On a two-day visit to London, Paris and Frankfurt to convince investors that Athens… Continue reading Is Greece Too Big To Fail?
The Wall Street Journal – Regulators to Target ‘Window Dressing’ Federal regulators are poised to propose new disclosure rules targeting “window dressing,” a practice undertaken by some large banks to temporarily lower their debt levels before reporting finances to the public. The Securities and Exchange Commission is scheduled to take up the matter at a… Continue reading Window Dressing
The Wall Street Journal – Money Funds Try Risk Again Two years after a big money-market mutual fund “broke the buck,” some funds are making new bets on risky securities—raising the chances for problems despite a raft of new rules designed to make the market safer…The SEC’s rules, which began taking effect in recent months,… Continue reading Money Market Funds
The Wall Street Journal – Allure of Home Ownership Dims, Fannie Mae Survey Shows The American dream of owning a home has lost some of its allure after years of falling home prices and owners facing financial ruin. A new survey by Fannie Mae shows the number of people who say they consider housing a… Continue reading More On Sentiment In The Housing Market
The Financial Times – Lex: Basel denominators Treasurers love to fiddle. As Basel III rules are phased in, bank bean counters will be massaging core tier one ratios like mad. Trouble is, the scope to fudge the ratio’s numerator – the capital bit – is limited. Preferred securities are being whittled back and interests in… Continue reading Basel III
Bloomberg.com – Jonathan Weil: Zombie Banks Have Us Right Where They Want Us Two years after the collapse of Lehman Brothers and what rightfully should have been the death of American International Group, U.S. capital markets face a crucial question. How long will it take before we see some semblance of robust free-market capitalism return,… Continue reading In Search Of Free Market Capitalism
<Click on chart for larger image> Real Time Economics (WSJ Blog) – Don’t Worry About China, Japan Will Finance U.S. Debt China has been diversifying its $2.5 trillion reserves away from the dollar, causing some to worry that less Chinese buying of Treasurys would cause U.S. interest rates to rise and make it more difficult… Continue reading What Happens If China Stops Buying U.S. Debt?
Bloomberg.com – Caroline Baum: Rearview Mirror Is Where Economists See Future John Maynard Keynes once said that when the facts change, I change my mind. Economists of all stripes practice what Keynes preached, at least when it comes to forecasting. Revise history and the future looks different. Weaker growth last quarter translates into weaker growth… Continue reading Predicting The Future Using The Rearview Mirror
The Financial Times – Bond strategy led to big win after Lehman The collapse of Lehman Brothers and central banks’ unorthodox monetary policies distorted markets to create some of the biggest pricing anomalies ever documented in bond trading, according to research from leading US academics. A paper from the US National Bureau of Economic Research… Continue reading Academics Have Pinpointed History’s Largest Arbitrage Ever
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Charts of the Week Topics Covered This Week Include: Junk Bonds Big Daily Moves In Stocks Use Of Food Stamps On The Rise The Gold/Silver Ratio As Silver Advances Age, Confidence And Financial Markets: Older Not Bolder Canadian Markets As Interest Rate Outlook Diverges Australia Continues To Mirror East Asian Growth Corporate Yield Curves: Absolutely… Continue reading Untitled