The ECB, like the Federal Reserve, implemented bank liquidity facilities which (in oversimplified terms) allow them to pledge collateral in exchange for cash. The ECB has been more liberal in the types of collateral that it accepts, which has led to some pretty blatant gaming of the system (and God only knows how much slippery […]
Read more...Although there have been rumors of various Lehman Hail Mary passes (the number of companies allegedly interested in investing in the troubled bank seems to grow on a daily basis), the one involving it spinning off less than choice debt into a liquidation vehicle appears to have some substance. A Bloomberg story today gives details […]
Read more...Bill Gross of Pimco’s monthly newsletter, “There’s a Bull Market Somewhere?” is out and making the rounds. The title refers to a Jim Cramer dictum. The bond chief uses it to argue that asset prices are declining on all fronts, which he then contends that the US government must reverse (boldface his): because in a […]
Read more...Morgan Stanley economist and Asia chief Stephen Roach’s current offering at the Financial Times, “Beijing’s Olympian task is to curb inflation,” says that the Chinese officialdom is focusing overmuch on growth in its policy mix. And Roach most assuredly believes that a serious slowdown is just starting. The article oddly underplays its bottom line. China […]
Read more...Can’t afford a home? Buy one in Sicily for a single euro BBC 4,500-year-old ice shelf breaks away CNN Beijing air measures ‘must stay‘ BBC Google – the evil identity theft company John Hempton If Sarah were Steve Palin…Mercurius, Larvatus Prodeo Live-Blogging Palin Andrew Sullivan. His 10:50 PM comment sums it up nicely (gluttons for […]
Read more...Wow, what happened? The CFTC went from being a lapdog to developing teeth. A little late, now that oil prices are on a forced march downward, but the commission could have backed off as oil became less of a front-burner issue. (Of course, your cynical blogger wonders if there was a risk that this story […]
Read more...Whether by accident or design, we’ve just been through a wee experiment on how higher fuel prices affect growth. Admittedly, it is difficult teasing out the impact of the credit crunch versus the oil and commodities spike, but in the US, habits started to change at $4 a gallon of gas, a lower level than […]
Read more...Brad Setser is thoughtful and data driven, but he also isn’t shy about saying what numbers portend, even if he runs the risk of sounding a tad alarmist. We’ve had so much complacency, followed by concerted efforts to keep asset values and confidence aloft that an unvarnished presentation can come off as a dousing of […]
Read more...Wolves prefer fishing to hunting BBC Scientists fear impact of Asian pollutants on U.S. McClatchy Monogamy gene found in people New Scientist Credit Card Junk Mail Decreases By 260 Million The Consumerist Paulson Asked to Spurn Rubin’s Inflation Indexed Debt Bloomberg. Paulson is considering killing TIPS. Rubin tried killing the long bond and succeeded for […]
Read more...UBS analyst Alistair Ryan has taken a stab at the level of use by British banks of the governments’ emergency facilities. His estimate, that it may total £200 billion or perhaps even higher. To put it in context: the UK’s GDP is roughly $2.8 trillion. The US economy is a bit under $14 trillion, or […]
Read more...One of the pet notions of M&A is that anything can be solved by price. Thus even a garbage barge embattled institution like Lehman might could be a screaming bargain at the right level. So it’s possible that HSBC and the unnamed Chinese bank are indeed interested in Lehman, but “interested” covers a multitude of […]
Read more...It isn’t surprising to see spreads on credit card debt on the increase. In fact, it might seem odd that it has taken this long. However, one perverse effect of the 2005 bankruptcy bill is that it is easier for consumers who are not eligible for a Chapter 7 bankruptcy to walk from their mortgages, […]
Read more...From the Nattering Naybob: Shares in the S&P 500 have climbed to an average 25.8X reported profits…. The last time that happened in 2001, the S&P 500 fell 38%. As they like to say, past performance is no guide to future return, but be warned.
Read more...The news of a possible investment by the Korean Development Bank in Lehman is overshadowing far more important developments, at least as far as most Koreans are concerned. The won is on a rapid slide, in a worrying parallel to the Asian currency crisis of 1997, and some other currencies in the region are under […]
Read more...Macro investor Marc Faber, a commodities bull until the spring of this year, says that commodities have further to fall. From Bloomberg: Oil will likely drop further in the next three to six months, according to investor Marc Faber, who reiterated his forecast that the second half of 2008 won’t be “favorable” for commodities. The […]
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