Daily Archive: Monday, June 22, 2009

German balanced budget law pending

[Skip to the end] (email exchange) >   On Mon, Jun 22, 2009 at 9:10 AM, wrote: >    >   And reach Wolfgang Munchnau in the FT today. Germany is really going nuts here. >   German sado-fiscalism! >    As he says towards the end, it’s a moral issue. This type of thing is the largest long term ...Read More

Trichet: Eurozone can’t spend any more

[Skip to the end] (email exchange) >   On Mon, Jun 22, 2009 at 4:32 AM, wrote: >    >   ECB President Trichet has warned that governments have no more room >   for taking on more debt, and should now look to start bringing down >   budget deficits. “There is a moment where you can’t spend anymore and ...Read More

ECB 1 year term repo

[Skip to the end] This should bring down the term structure of rates at least out to one year, especially if the program is ongoing at this fixed rate. And, operationally, it’s a similarly simple matter to set ‘risk free’ rates out the entire curve. So, for example, bringing down rates out ...Read More

Fed Repo Facility

[Skip to the end] It is something they want but seems there is no viable plan yet. It is harder than it sounds and what they do come up with if short of a government guaranteed market will have similar risks. The ‘answer’ is the repo markets add no value to the ...Read More

Fed swap lines continuing to wind down

[Skip to the end] Central bank liquidity swaps (13) 150,282 – 15,574 [top] ...Read More