The efforts to try to burnish the image of bankers have gone from being unconvincing to ridiculous. I am certain we will see Jon Stewart comment on the latest twist, of trying to claim that God wants banks (and therefore bankers) to make a lot of money. Since Calvinism is the de facto religion of […]
Read more...It was curious to see the immediate complacent stock market reaction to the FOMC remarks that the Fed is going to keep rates low for an extended period (although it did crumble right before the close of trading). Yes, the central bank will have a tricky balancing act when it has to mop up liquidity, […]
Read more...OK, I have heard all the explanations, spreads are wider because there are fewer market makers, asset prices are rallying (market making firms are structurally long; it’s difficult and costly to go net short on that big a balance sheet), Goldman is currently the trading kingpin. But I still find these factoids remarkable: Goldman lost […]
Read more...By George Washington of Washington’s Blog. The Wall Street Journal admits this week that economists blew it: The pain of the financial crisis has economists striving to understand precisely why it happened and how to prevent a repeat… The crisis exposed the inadequacy of economists’ traditional tool kit, forcing them to revisit questions many had […]
Read more...By George Washington of Washington’s Blog. Yesterday, Elliot Spitzer said that the White House’s defense of the financial status quo will give Republicans powerful ammunition in the 2010 elections. Democratic cheerleader Markos Moulitsas (the “Kos” behind Daily Kos) wrote the following about the Democratic losses in several state elections: Democratic turnout collapsed. This is a […]
Read more...Submitted by Edward Harrison of Credit Writedowns I am posting this in the interest of widening the discussion at Naked Capitalism to include some topics in Europe. Fitch, the credit rating agency, has just downgraded the sovereign debt ratings for the Republic of Ireland from AA+ to AA-. That is two notches and is proof-positive […]
Read more...Served by Jesse of Le Café Américain Here is an update of the US Dollar (DX) Very Long Term chart last shown on 3 April 2009 when the Eurodollar short squeeze was still abating. We do not see any reason to change the longer term targets based on what appears to be a confirmation of […]
Read more...By Edward Harrison of Credit Writedowns Yves is tied up in the never-ending ordeal that is writing a book, so I will fill in a few gaps by posting on NC today. Let’s wish Yves well in getting this thing sorted. The power grab at the Federal Reserve is a topic I first broached back […]
Read more...Anthropologist Levi-Strauss dies BBC To Breed or Not to Breed? h+ The Fed Thoughtfully Strokes Its Beard, Flaps Its Gums Annaly Salvos (hat tip reader Scott) About to think the unthinkable Wolfgang Munchau, Eurointelligence Prichard Alabama Files Bankruptcy Over Pensions; Wildcat Strike In Philadelphia; Oregon’s Financial Gamble Michael Shedlock Fears of a New Bubble as […]
Read more...By George Washington of Washington’s Blog Many people – including former analyst for the U.S. Treasury Richard Cook – argue that credit is too important a function to be left to the private banks. Indeed, even after taxpayers have given trillions in bailouts, backstops, guarantees, and other gifts, the giant banks are still not lending […]
Read more...Eliot Spitzer explains how the White House defense of the status quo will give Republicans powerful ammunition in the 2010 elections. Few things are as potent in politics as calling for change at a moment of fundamental dissatisfaction with the status quo. Nobody should know this better than the current White House. Gauzy words describing […]
Read more...The Treasury invited a small group of bloggers for a “discussion” with senior officials on Monday. Initially, the meeting was to be background, which is a sort of journalistic “FYI but you can’t use it” but we were told at the meeting that we could discuss the meeting as long as remarks were not attributed […]
Read more...By Edward Harrison of Credit Writedowns Christopher Wood, the well-noted market strategist at CLSA and writer of the classic Japan crash warning book “The Bubble Economy,” is now warning of a market correction in the West. According to CNBC India, Wood believes that the markets’ extreme upward move is increasing the chances of a major […]
Read more...Dear readers, I stupidly have been trying to write a post when overtired, with the result that it isn’t done (taking 4x as long as it should). Apologies, will have something for you later today. Making a Smarter Rat h+ (hat tip reader David C) Will Citigroup rise again from its near death experience? FT […]
Read more...By Edward Harrison of Credit Writedowns If you have been wondering whether a statistical recovery is at hand, today’s ISM manufacturing report should be the clincher. The report was definitely bullish with the ISM index rising to 55.7 and sub-components supporting the understanding that the manufacturing sector is expanding. This is quite a contrast to […]
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