Daily Archive: Thursday, January 7, 2010

Thoughts/Response to Bill Gross Piece

[Skip to the end] Well stated and agreed!!! A few highlights(mine), below: On Thu, Jan 7, 2010 at 8:57 AM, Lando, Joseph wrote: In a bit of a surprising philosophical shift, Bill Gross came out yesterday strongly bearish and firmly in the camp of the deficit hawks: Link . My reaction: 1. ...Read More

bank ‘hoarding of cash’

[Skip to the end] Agreed. And as I’ve been saying since day one. The transmission mechanism he references isn’t broken. It never existed. The reason banks are ‘hoarding cash’ is that the Fed has exchanged reserve balances for securities it bought in the market place. The Fed determines reserves/’hoarding’ and not the ...Read More

China Guides Bill Yields Higher

[Skip to the end] I would expect the higher rates to support aggregate demand through the interest earned channels in the nations that hike rates. Also, much of China’s lending by state owned/sponsored banks may be thinly disguised fiscal transfers that support demand. Cutting back by raising lending standards would then reduce ...Read More