Federal Reservations

Robert Shiller, Professor of Economics at Yale University, sits down with Simon Constable of WSJ to discuss the sharp falloff in home sales, the likelihood of a double-dip recession and what the Federal Reserve should do to stimulate the U.S. … [visit site to read more]

Originally from Daily Markets

Bernanke Speech to Impact Dollar
The US Prelim GDP, to be released at 12:30 GMT, is the primary publication today that is set to determine the level of the US dollar. The other main release that are is to dominate forex trading, especially for currencies, is the publication of the British Revised GDP at 8:30 GMT. Traders are also advised to follow Fed Chairman Bernanke’s speech at 14:00 GMT. This speech is very likely carry a higher than usual impact on Dollar volatility.
Economic News
USD - … [visit site to read more]

Originally from Daily Markets

The 10 year T-Note is currently yielding 2.5%, and the fed`s latest quantitative easing initiative is becoming counterproductive to their stated purpose of trying to stimulate the economy by encouraging more risk taking, i.e., private capital utilization seeking attractive return on investment opportunities. The issue is that Mr. Ben Bernanke and the fed governors although great academicians have failed to take account for how traders and financial markets impact and take advantage of fed … [visit site to read more]

Originally from Daily Markets

International Lease Finance Corp. (“ILFC”), an aircraft-leasing wing of American International Group Inc. (NYSE:AIG), has repaid the US government loan of $3.9 billion, following the debt offering of $4.4 billion of secured and unsecured notes.
ILFC now has a principal loan balance of over $15 billion with the Federal Reserve Bank of New York, which it expects to repay without any support of its parent company AIG.
ILFC raised $4.4 billion of new debt on August 11, of which ILFC sold $3.9 … [visit site to read more]

Originally from Daily Markets

What happened in 08
Was yesterday’s news.
What’s happening now
Is the delta blues.
 
I’m mystified by the emphasis some pundits are placing on totals while ignoring recent changes in those totals—the deltas. Even though most of the growth in the Fed’s balance sheet is almost two years old, some say its size is too big and must be shrunk. It’s the same with bank reserves and the money supply. Many say we have plenty of money out there and dangerously high levels of bank … [visit site to read more]

Originally from Daily Markets

Government bonds across the globe are benefiting from concern about anemic economic growth, the risk of deflation in the US, and the Federal Reserve’s decision to reinvest maturing bonds and buy US Treasuries. Yields on Japanese, German, UK and US government bonds fell to fresh multi-month and, in some cases, all-time lows.

Meanwhile, analysts’ advise that “It seems U.S. bonds are still the safest place to hide”, and market herd mentality is making the Hindenburg Omen an ever more … [visit site to read more]

Originally from Daily Markets

Commodities – Energy
Crude Oil to Move on Growth Outlook
Crude Oil (WTI) $75.59 // $0.20// 0.27%
Commentary: Crude oil is little changed in overnight trade after falling dramatically last week. Crude shed over $6/barrel, or 7.5% over four sessions, as global growth concerns reemerged following cautious comments from the U.S. Federal Reserve. This week is likely to feature more of the same consternation surrounding the state of growth around the world, but with prices notably lower than they … [visit site to read more]

Originally from Daily Markets

A hodge-podge of government reports released Friday has rekindled debate amongst economists over a question central to the future of the U.S. economic recovery:  Is inflation slowly on the rise, or is deflation about to sink prices and future growth?

The consumer price index (CPI) rose for the first time in four months in July, signaling higher prices in some sectors and easing concerns that a slowdown would sink the U.S. economy into deflation.  Meanwhile, the government released a … [visit site to read more]

Originally from Daily Markets

Crude oil prices slumped below $80 a barrel again this week as the Federal Reserve and other official forecasters took a dimmer view of the economic recovery.

Friday’s closing price for the benchmark West Texas Intermediate futures contract of $75.39 a barrel marked a retreat from the contract’s short-lived foray outside the $70 to $80 a barrel range it has been trapped in for months. Prices fell nearly 7% from last Friday’s close of $80.70 a barrel.

The Federal Open Market … [visit site to read more]

Originally from Daily Markets

This week, national attention was fixated on JetBlue flight attendant Steven Slater, whose bold, creative, and controversial exit strategy could revitalize his future prospects. Not nearly as noticed was the Federal Reserve’s decision on Tuesday to avoid finding an exit strategy for its own never-ending career trap. Unfortunately, the Fed’s choices affect our lives much more than Slater’s.

Just a few weeks ago, pundits were asking how Ben Bernanke would shrink the Fed’s bloated post-crisis … [visit site to read more]

Originally from Daily Markets