Daily Archive: Tuesday, August 9, 2011

FOMC Statement(3 dissents)

Karim writes: Pretty tepid response in light of the changed assessment of current conditions and outlook. No hike thru early 2013 was already priced, so stating that they are unlikely to hike thru at-least mid 2013 doesn’t buy them that much more in terms of taking out tightening. Also, didn’t apply ‘extended ...Read More

Equity storm over for a bit

From Goldman: Published August 8, 2011 * Following Friday’s downward revisions, we now expect real GDP to increase just 2%-2½% (annualized) through the end of 2012 and the unemployment rate to rise slightly to 9¼% during this period. This is still higher than the first half, so presumably corporations will have a ...Read More

US Really Closer to ‘Junk Bond’ Status Than to Triple-A: Bove

So how would he rate American Airlines on it’s ability to award frequent flyer miles? The legacies are falling like like flies. The media will be hard pressed to find anyone with any credibility left with the emergence of MMT. US Really Closer to ‘Junk Bond’ Status Than to Triple-A: Bove The ...Read More

QE Euro Style

It’s more of the same in the euro zone. It all goes bad until, finally, when it gets bad enough, the ECB writes the check and buys the bonds of whatever nation is in trouble. Along with the usual imposition of austerity terms and conditions. When the US and Japan do qe, ...Read More

Volatility article in Markets Media

Thanks to Will Thompson. I got a nice mention here explaining how tail hedging can cause the kind of volatility we are now seeing, much like the crash of 1987: Volatility: An Asset Class or Quick Buck? Posted on August 8, 2011 The CBOE Volatility Index, commonly referred to as the market’s ...Read More

Asia Banks Face Dollar Funding Squeeze After US Cut

This has nothing to do with the downgrade. Looks like the boys got themselves caught in a bit of a dollar short squeeze. Falling crude oil and other commodity prices will only make it worse. The Aussie dollar looks to be down close to 10% from recent highs, indicating a bit of ...Read More