Bonds Archive

Goldman Sachs trying to broker Greek bonds to China

[Skip to the end] I went to high school with Chris Powell where he was a good friend of mine, then lost touch. We’ve had a few emails discussing GATA. Seems their beef is that the Fed is conspiring to keep the price of gold down, which wrongly hurts the GATA supporters. ...Read More

Japan

[Skip to the end] Karim writes: There is a piece typifying the logic behind the buying of high strike payers in Japan (Japanese govt debt ‘Ponzi Scheme’). Also heard GS put a similar piece out today but have not seen. Makes no sense but seems to be gathering steam. Right, the sustainability ...Read More

latest Bernanke remarks

[Skip to the end] Like depository institutions in the United States, foreign banks with large dollar-funding needs have also experienced powerful liquidity pressures over the course of the crisis. This unmet demand from foreign institutions for dollars was spilling over into U.S. funding markets, including the federal funds market, leading to increased ...Read More

Assessing the Fed under Chairman Bernanke

[Skip to the end] “Worldly wisdom teaches that it is better for reputation to fail conventionally than to succeed unconventionally.” Keynes, Chapter 12, The General Theory of Employment, Interest, and Money The Fed has failed, but failed conventionally, and is therefore being praised for what it has done. The Fed has a ...Read More

Guaranty Bank: OTS Closes the Barn Door

[Skip to the end] Interesting they are selling the assets to a foreign bank, presumably at high rates of return. Just one more thing that pushes exports and reduces our real terms of trade and standard of living. Also, by addressing the banking issue from the ‘top down’ by funding the banks ...Read More

Geithner Pledges Smaller Deficit as China Talks Start

[Skip to the end] Geithner Pledges Smaller Deficit as China Talks Start By Rebecca Christie and Rob Delaney July 27 (Bloomberg) — Treasury Secretary Timothy Geithner pledged the U.S. will shrink its budget deficit over the next four years and boost national savings, Ah, ‘national savings,’ that gold standard measure that’s inapplicable ...Read More

PIMCO’S Gross proposes tax increase

[Skip to the end] Raise taxes with unemployment rising due to a shortage in aggregate demand? Just in case you thought the great marketer understood the monetary system: Pimco’s Gross: Maybe Obama Should RAISE Taxes By: JeeYeon Park June 3 (CNBC) — Inflation is likely three to five years down the road, ...Read More

Professor John Taylor on the exploding debt

[Skip to the end] From the good professor who brought us the ‘Taylor Rule’ for Fed funds: Exploding debt threatens America by John Taylor May 26 — Standard and Poor’s decision to downgrade its outlook for British sovereign debt from “stable” to “negative” should be a wake-up call for the US Congress ...Read More

2009-01-09 EU News Highlights

[Skip to the end] Highlights Trichet Sees ‘Significant’ Economic Worsening, II Magazine Says European Confidence Drops to Record Low; Unemployment Increases German Exports Drop 10.6% as Recession Hurts Orders German Ministry Seeks $136 Billion Fund to Ease Company Credit German bond sale’s fate signals trouble ahead ‘Bond failures’ are not all that ...Read More

Monoline proposal

Fed by itself or working with AAA counterparty offers to sell supplemental bond insurance to investors. (AFLAC concept) Maybe charge a point and insure up to a price of maybe 99, or whatever combo works. Worst case the current insurers are downgraded to AA, so they should still be able to cover ...Read More