Newsclips
Cartoons
August 2, 2010
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The New York Times – Economists Expect Slower Growth in Second Half Two steps forward, one step back. That describes the current thinking about a year into the putative economic recovery. On Friday, the government will release its report on the nation’s output for the second quarter, showing how much, if at all, the economy… Continue reading The Economy And A Possible Double-Dip
The Wall Street Journal – Strong Profits. Weak Economy. Odd Couple? Weak economy, strong profits? Not as strange as it sounds. Gross-domestic-product figures due Friday are expected to paint a disappointing picture of U.S. economic performance. Second-quarter GDP is likely to show growth roughly in line with the first quarter’s 2.7% annualized pace, an unusually… Continue reading Profits v Economic Growth
The Financial Times – Swap rates fall below Treasury yields A historic relationship between US government bonds and interest rate swaps has broken down this week, for only the second time, as a flood of corporate debt issuance from banks pushed 10-year swap rates below Treasury yields. The negative spread between swaps and “risk free”… Continue reading Swap Rates Negative Again
The Wall Street Journal – Bonds Soar to Rare Heights Corporate Borrowers Feast on Cheap Debt; McDonald’s to Pay Record Low Interest This month has been the busiest July on record for sales by U.S. companies with junk-credit ratings. Asia’s debt market is on pace for a record year, and European companies are also raising… Continue reading Bond Issuance, Depends On How It Is Measured
Johnbtaylor.com ( Blog) – More on the Blinder-Zandi Working Paper on the Crisis Yesterday the New York Times published an article about simulations of the effects of fiscal stimulus packages and financial interventions using an old Keynesian model. The simulations were reported in an unpublished working paper by Alan Blinder and Mark Zandi. I offered… Continue reading Did The Bailouts Help?
Up & Down Wall Street Daily (Barron’s Online) – Randall W. Forsyth: Do You Believe in Technicals or Fundamentals? IT’S SUMMER, the time for amusement parks and roller-coaster rides. So, too, it seems for the stock market as July is turning out to be fun after the second quarter’s scary slide. Key technical gauges of… Continue reading Technical V Fundamental Analysis
The Financial Times – Philip Stephens: Three years on, the markets are masters again It has been three years since the roof started to fall in. And only a year and a bit since the more faint-hearted stocked their cellars with bottled water and canned food lest the financial crash presage a descent into anarchy.… Continue reading Markets Still Rule
The Economist – European banks: More stress ahead It will take more than stress tests to resolve European banks’ funding problems Even confident investors, however, may balk at how much debt they will soon be asked to buy. Euro-zone and British firms have €3.3 trillion of bonds to refinance by 2015, three times more than… Continue reading More On Bank Stress Tests
The New York Times – Within the Fed, Worries of Deflation On Thursday, James Bullard, president of the Federal Reserve Bank of St. Louis, warned that the Fed’s policies were putting the economy at risk of becoming “enmeshed in a Japanese-style deflationary outcome within the next several years.” The warning by Mr. Bullard, who is… Continue reading Deflation
The Financial Times – Samuel Brittan: Take central banks down a notch Following the Peter Principle, we should expect people to be promoted to the level of their incompetence. It may be unfair, but that thought crossed my mind in a week in which the Bank of England has been given unprecedented responsibilities. It retains… Continue reading Central Banking
Bloomberg.com – Trader Monthly’s Lane Gets Stuck in His Own ‘Jealousy Machine’ Magazine maker Randall Lane built a career out of what he came to call “the jealousy machine.” Then the machinery chewed him up and spat him out, as he shows in “The Zeroes,” a farcical memoir of how Lane’s Trader Monthly and other… Continue reading The Jealousy Machine