Daily Archive: Monday, March 9, 2009

Bernanke to ‘deploy all tools’ except the right ones

[Skip to the end] The right tools have yet to be deployed: Lending to member banks on an unsecured basis (demanding collateral is redundant).   Providing banks with term financing at rates set by the FOMC (mortgage rates, etc. can be directly set as desired).   Prohibiting bank sales of financial assets ...Read More

Summers on stimulus

[Skip to the end] World Coordinated Stimulus Needed: White House Mar 9 (Reuters) NOT!!! We are much better of doing it all unilaterally. This is the cost of having leadership that does not understand our monetary system. Summer’s comments, ahead of next month’s G20 summit in London, suggest the U.S. administration wants ...Read More

OPEC February Crude Output Down 770,000 Bbl/Day to 27.775 Million

[Skip to the end] The Saudis are back to being swing producer as they set price and let output adjust. World inventories are estimated to be falling by over 1.4 million barrels per day, as confirmed by the contango quickly fading to backwardation as we pass the ‘roll period’ for the passive ...Read More

Re: Consumer credit up

[Skip to the end] (email exchange) >    >   On Mon, Mar 9, 2009, Mauer wrote: >    >   And then there’s this, which nobody focused on last week, fixating instead on the employment >   numbers. >    Yes, another indicator moving sideways rather than down. [top] ...Read More

China News Highlights

[Skip to the end] Looks like they are showing signs of having bottomed as well, and continue to push demand with fiscal adjustments to sustain employment? The post Olympic lull also contributed to the Great Mike Master’s Inventory liquidation which seems to have run its course by late December. Highlights China Textile ...Read More

Comments on Krugman

[Skip to the end] Yes, but unspoken is the automatic stabilizers are quietly adding to the deficit with each move down, and the curves will cross and the economy start to improve when the deficit gets large enough, whether it’s the ugly way via falling revenues and rising transfer payments, or proactively ...Read More

USD LIBOR inching out as ECB USD swap lines move lower

[Skip to the end] Maybe the ECB is quietly asking their banks to reduce their USD borrowings, causing them to bid up USD LIBOR? [top] ...Read More

SOV CDS Indicative Level

[Skip to the end] Starting this week off higher as equity markets sag. Systemic risk in the eurozone remains elevated. Wide spreads in the US, UK, Sweden, etc. show markets misunderstand the risks of governments with their own non-convertible currency and floating FX policy. SOV CDS Indicative Levels Country 5yr CDS/10yr CDS ...Read More

Crude oil inventories falling

[Skip to the end] Higher crude prices means dollars are easier to get overseas and will tend to weaken the dollar. And the talk is higher oil prices will give the Fed more reason to keep rates low as the higher prices tend to slow growth. And don’t immediately impact core price ...Read More

2009-03-09 CREDIT

[Skip to the end]   Some new wides and the stock market hits new lows. 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 (Mar 09) [top][end] IG6 Spreads (Mar 09) [top][end] ...Read More