The ‘Other’ Bubble
Lorenzo Bini Smaghi, a former member of the ECB’s executive board, raised some ire last month when he was quoted at the IMF’s spring meeting saying, “We don’t fully understand what is happening in advanced economies.” Such a statement drew so much attention largely because a significant number and proportion of investors, observers and professionals .. read more
As The Euro Turns (Again)
Financial markets in Europe have been a sea of tranquility since last summer. The ECB and Mario Draghi’s promise for unlimited interventions began another quieting period that suppressed bond spreads that has led to the premature “euro crisis is over” sentiment. During that time, the Greek settlement (or third default) on December 10 seemed to .. read more
Liquidity & Financial Condition Report, Jan 2013 – US Credit
The heavy hand of Federal Reserve policy is apparent in the credit markets as intended. The Fed continues to follow a ZIRP approach that expects low interest rates to create credit production in the banking system that transitions to the real economy as either personal sector or business loans. The first part of that equation .. read more
Nothing New Here…Move Along
The stock market is now back near its November lows and the pessimism is as thick as a copy of Keynes General Theory. The “stimulus” package has been deemed either insufficient or overkill depending on your political persuastion, but certainly not stimulating. The joy over the selection of Timothy Geithner as Treasury Secretary has faded .. read more
Nothing New Here….Move Along
The stock market is now back near its November lows and the pessimism is as thick as a copy of Keynes General Theory. The “stimulus” package has been deemed either insufficient or overkill depending on your political persuastion, but certainly not stimulating. The joy over the selection of Timothy Geithner as Treasury Secretary has faded .. read more
Slight Improvement In Credit Markets
There has been a slight improvement in the credit markets today according to Calculated Risk.
The Choice
Americans face the most important choice of a generation. Our economy is not performing as we would like. Inflation is too high yet home prices are falling. The credit markets are frozen as banks retrench from losses generated by past, ill advised loans. Income and wealth inequality have risen. Real wages are essentially stagnant. The .. read more
