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What Will The Federal Reserve Tell Us Today?
August 10, 2010
The Financial Times – Doves and hawks tussle at the Fed Since the Federal Reserve’s Open Market Committee last met, the most notable dissent to chairman Ben Bernanke’s steering of monetary policy has shifted from the hawkish to the doveish flank. Back in June, Thomas Hoenig, Kansas City Fed president, criticised the FOMC’s mantra of… Continue reading What Will The Federal Reserve Tell Us Today?
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Corporate Debt
August 10, 2010
The Wall Street Journal – Chasing Yields, Chasing Our Tails Nearly two years removed from the Lehman Brothers shock, bond investors are again “chasing yield,” taking mounting risk for minimal future gains. As always, the risks are hiding in plain sight. As always, investors have little choice but to play along with the low interest-rate… Continue reading Corporate Debt
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Anemic Volume Continues
August 10, 2010
MarketBeat (WSJ Blog) – Slowest Day of the Year for Stocks Yep, there’s no doubt about it. We’re in the thick of the August slowdown. Monday’s trading was the slowest of the year with just 3.31 billion shares changing hands on the NYSE composite tape. That’s the slowest we’ve seen since the 2.29 billion shares… Continue reading Anemic Volume Continues
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What Are The Odds Of A Recession?
August 10, 2010
The Federal Reserve Bank Of San Francisco – Future Recession Risks We are interested in predicting a binary outcome: Will the economy be expanding or contracting at a particular future date, given what we know today? One way to summarize the likelihood of each of these outcomes is by taking the ratio of the probability… Continue reading What Are The Odds Of A Recession?
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One More Look At The Nonfarm Payroll Number
August 10, 2010
Bloomberg.com – Caroline Baum: Economy Lost Momentum While I Was Pulling Weeds The post-mortems on the July employment report made me realize I’d missed the recovery. While I was watching my garden grow, the U.S. economy “lost momentum,” according to every news report I read or heard over the weekend. Somewhere between the budding of… Continue reading One More Look At The Nonfarm Payroll Number
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Breaking The Buck
August 10, 2010
The Wall Street Journal – ‘Breaking the Buck’ Was Close for Many Money Funds At least 36 of the 100-largest U.S. prime money-market funds had to be propped up in order to survive the financial crisis, according to a report from Moody’s Investors Service. From August 2007 to December 2009, at least 20 firms that… Continue reading Breaking The Buck
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Freddie Mac
August 10, 2010
The Wall Street Journal – Freddie Mac Seeks More Aid Amid Loss Freddie Mac reported a second-quarter net loss of $4.7 billion and asked the U.S. Treasury to provide a $1.8 billion infusion, raising the government’s tab for its rescue of the mortgage-finance company to $63.1 billion. The second-quarter loss, the 11th in the last… Continue reading Freddie Mac
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Cartoons
August 10, 2010
None Today
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Get Ready for QE2
August 9, 2010
Bloomberg.com – Weak Hiring Intensifies Debate on Possible Fed Easing A report U.S. companies hired fewer workers than forecast last month intensified a debate among economists over whether Federal Reserve policy makers will take an incremental step next week toward providing more stimulus. U.S. central bankers said in June that more monetary stimulus “might become… Continue reading Get Ready for QE2
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Quants
August 9, 2010
Zero Hedge (blog) – July P&L Disappointing For Quants Ian Arvin’s Innovative Quant Solutions has completed its July performance tracking analysis, and the result is a major weakness for quants in the just completed otherwise animal spiritsh month, as increasingly fewer factors proved successful, with pronounced weakness in the traditionally robust during the bear market… Continue reading Quants
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Rating Agencies
August 9, 2010
The Wall Street Journal – Regulators Plan First Steps on Credit Rating U.S. financial regulators this week will take their first steps to replace private credit ratings in their review of bank capital levels, a big step for regulators eager to ensure they are able to accurately assess firms’ financial condition. The Federal Deposit Insurance… Continue reading Rating Agencies