Monthly Archive:: February 2009

Re: Tax cuts may heighten deflation risks – NY Fed study

[Skip to the end] (email exchange) It doesn’t make sense in any model this side of sanity. Comments below: >    >   On Sun, Feb 22, 2009 at 7:47 PM, Steve wrote: >    >   Does this make sense in your model of fiscal policy?….interesting >   counter intuitive argument… >    Tax cuts may heighten deflation risks- NY ...Read More

Fears rise on Russian foreign debt

[Skip to the end] Yes, the risk of Russian corporate defaults due to governmental difficulties goes with the territory. Fears rise over Russia’s foreign debt by Catherine Belton Feb 22 (Financial Times) — Western bankers are increasingly anxious about Russian companies’ ability to repay $500bn in foreign corporate debt after the government ...Read More

Clinton Urges China to Keep Buying U.S. Treasury Securities

[Skip to the end] We don’t need China or anyone else to buy our securities to finance our stimulus plan. And acting like we do and going on the defensive like this is radically counterproductive at best. And isn’t she pledged on record to helping US jobs rather than increasing exports? Yet ...Read More

Obama: “We can’t generate sustained growth without getting our deficits under control”

[Skip to the end] I was hoping not to be reading this: Obama aims to halve deficit by 2013 by Ross Colvin Feb 22 (Reuters) — Obama wants to slash the ballooning deficit in half by 2013, U.S. officials said Saturday, after massively increasing public spending to stem the worst economic crisis ...Read More

Clinton thanks China for buying US Treasury Securities

[Skip to the end] US, China Agree to Broaden Strategic Dialogue, Clinton Says by Indira A.R. Lakshmanan and Eugene Tang Feb 22 (Bloomberg) — Clinton thanked China for its continued purchases of U.S. Treasury notes, demand for which is needed to pay for Obama’s $787 billion stimulus plan. No it isn’t. It ...Read More

2009-02-23 CREDIT

[Skip to the end]   Weakness in credit matching weakness in equities. IG On-the-run Spreads (Released 5:02 EST) IG6 Spreads (Released 5:02 EST) IG7 Spreads (Released 5:02 EST) IG8 Spreads (Released 5:02 EST) IG9 Spreads (Released 5:02 EST) IG On-the-run Spreads (Feb 23) [top][end] IG6 Spreads (Feb 23) [top][end] IG7 Spreads (Feb ...Read More

Swap lines in a narrow range

[Skip to the end] Central bank liquidity swaps (13) $379,687 – $9,984 [top] ...Read More

Re: Martin Wolf spot on

[Skip to the end] (email exchange) Cliff, Martin Wolf is spot on below. Our biggest risk is the reluctance of our leaders to implement the fiscal adjustments on an as needed, size no object, basis to reverse shortfalls in aggregate demand. >    >   On Fri, Feb 20, 2009 at 11:11 AM, Cliff wrote: ...Read More

SOV CDS Indicative Levels

[Skip to the end] Thanks! Germany and France touch 100, up from 5 cents not long ago and climbing rapidly. Ireland on the verge of going parabolic. SOV CDS Indicative Levels Country 5yr CDS/10yr CDS Austria 235/260 -10/0 Belgium 143/153 -5/0 Finland 80/95 -1/+2 France 88/100 -3/0 Germany 88/100 -1/+1 Greece 240/270 ...Read More

Paying off China for Dummies

[Skip to the end] So how do we pay off those Treasury securities held by China? Treasury securities are held in accounts at the US Federal Reserve. Let’s assume $1 billion of Treasury securities held by China comes due tomorrow. Here’s what would happen tomorrow: The US Federal Reserve would lower the ...Read More