Posted by WARREN MOSLER on 14th March 2008
Consumer Price Index MoM (Feb)
| Survey |
0.3% |
| Actual |
0.0% |
| Prior |
0.4% |
| Revised |
n/a |
CPI Ex Food & Energy MoM (Feb)
| Survey |
0.2% |
| Actual |
0.0% |
| Prior |
0.3% |
| Revised |
n/a |
Consumer Price Index YoY (Feb)
| Survey |
4.3% |
| Actual |
4.0% |
| Prior |
4.3% |
| Revised |
n/a |
CPI Ex Food & Energy YoY (Feb)
| Survey |
2.4% |
| Actual |
2.3% |
| Prior |
2.5% |
| Revised |
n/a |
The calm during the storm. March numbers are already being forecast at up 0.7% for headline CPI.
The individual components have been volatile.
Also, gasoline prices fell 2%. Retail sales of gasoline was reported down 1% earlier this week. Together this implies physical demand (gallons sold) went up.
U. of Michigan Confidence (Mar P)
| Survey |
69.5 |
| Actual |
70.5 |
| Prior |
70.8 |
| Revised |
n/a |
Current conditions improved, expectations fell.
Inflation expectations one year forward rose from 3.6% to 4.5% which complicates the Fed’s decision on Tuesday.  The 5 year number fell from 3.0% to 2.9% which is somewhat of an offset.
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Posted by WARREN MOSLER on 14th March 2008
Similar to the beginning of the end of the 1998 crisis when D bank bot Banker’s Trust when BT couldn’t fund itself, and then D bank funded Lehman and other dealers in a similar position to where Bear was yesterday.
Back then it happened after a three 25bp fed rate cuts. This time it happened after a total of 225 in cuts.
Today, JPMorgan Chase & Co. (NYSE: JPM) announced that, in conjunction with the Federal Reserve Bank of New York, it has agreed to provide secured funding to Bear Stearns, as necessary, for an initial period of up to 28 days. Through its Discount Window, the Fed will provide non-recourse, back-to-back financing to JPMorgan Chase. Accordingly, JPMorgan Chase does not believe this transaction exposes its shareholders to any material risk. JPMorgan Chase is working closely with Bear Stearns on securing permanent financing or other alternatives for the company.
JPMorgan Chase and Federal Reserve Bank of New York To Provide Financing To Bear Stearns
Today, JPMorgan Chase & Co. (NYSE: JPM) announced that, in conjunction with the Federal Reserve Bank of New York, it has agreed to provide secured funding to Bear Stearns, as necessary, for an initial period of up to 28 days. Through its Discount Window, the Fed will provide non-recourse, back-to-back financing to JPMorgan Chase. Accordingly, JPMorgan Chase does not believe this transaction exposes its shareholders to any material risk. JPMorgan Chase is working closely with Bear Stearns on securing permanent financing or other alternatives for the company.
Posted in Articles, Interest Rates | No Comments »
Posted by WARREN MOSLER on 14th March 2008
If the euro hadn’t been as strong as it is, inflation would be that much higher over there.
Highlights:
| European Inflation, Labor-Cost Growth Accelerate |
| European govt bonds lower after euro zone inflation hits new record |
| German Inflation Stays Above ECB Limit for 12th Month |
Posted in EU | No Comments »
