Financial Times Archive

Rogoff & Reinhart answering my call in FT – Austerity is not the only answer to a debt problem

Good to see Ken, who I’ve never met, and Carmen who I do know, no doubt assisted by her husband Vince, beginning to come clean with this response. While not complete, it’s the beginning of an encouraging, epic reversal and a first step in the right direction! My comments added below: Austerity ...Read More

Norway oil fund makes big move from bonds to stocks

Seems like this ‘quasi’ govt type of thing is often later shown to be behind ‘difficult to explain’ ‘liquidity driven’ equity moves. Norway oil fund makes big move from bonds to stocks By Richard Milne in Oslo April 29 (FT) — Norway’s oil fund has reduced its bond holdings to their lowest ...Read More

Thaler’s Corner 04-22-2013 2013: And now?

Again, very well stated! Thaler’s Corner I must admit that I am at a loss for words these days. The analytical items at our disposal describe a situation so complex, given a myriad of contradictory influences, that I find it impossible to develop any sort of reasonable scenario. I have spent a ...Read More

BOJ Shockwave Leveling Rates Sends Banks to Dollar: Japan Credit

Bad for US banks if they are coming to compete in the US market again. This will cut into net interest margins. BOJ Shockwave Leveling Rates Sends Banks to Dollar: Japan Credit By Monami Yui & Emi Urabe April 16 (Bloomberg) — Shizuoka Bank Ltd. (8355) joined Japanese national lenders in expanding ...Read More

Draghi Considers Plan B

Yet more proposals that won’t work. The problem remains: Deficits are too small while they all think they are too large. Draghi Considers Plan B as Sentiment Dims After Cyprus Fumble By Jeff Black and Jana Randow and Stefan Riecher April 4 (Bloomberg) — European Central Bank President Mario Draghi is under ...Read More

The Stockman’s big swinging whip

The Man from Snowy River By Banjo Paterson So Clancy rode to wheel them — he was racing on the wing Where the best and boldest riders take their place, And he raced his stock-horse past them, and he made the ranges ring With the stockwhip, as he met them face to ...Read More

comments on Bass and Koll

Cooler Heads: The Rebuttal to Kyle Bass’s Japan Market Meltdown Scenario from JPMorgan’s Jesper Koll and Masaaki Kanno By Stephen Harner Bass comments: At 24 times central government tax revenues, cumulative Japanese government debt has reached a level which ensures financial collapse. Not, just a reserve drain. With the Abe/Aso government setting ...Read More

Thaler’s Corner 19th Februaryy 2013: Positive Currency Wars!

The usual excellent post! Positive Currency Wars! 19 February 2013 Financial markets are today being buffeted about by a slew of highly complex and changing influences. As readers may recall, at end-January (Thaler’s Corner 31/01: Too Cloudy), we advised people to favor Risk Off positions (references 2725 Euro Stoxx and 141.85 Bund), ...Read More

Japan Pension Funds Bonds Too Many If Abe Succeeds, Mitani

For all practical purposes this is about and part of ‘official policy’ to weaken the yen if they do it. That is, it’s not a reaction to govt policy, it is govt policy. Japan Pension Funds Bonds Too Many on Abe Plan, Mitani Says By Anna Kitanaka, Toshiro Hasegawa & Yumi Ikeda ...Read More

ecb getting there?

>    >   (email exchange) >    >   On Jan 6, 2013 6:41 AM, Andrea wrote: >    >   Some interesting points made by Ulrich Bindseil and Adalbert Winkler (ECB) in >   their October 2012 paper >    >   How about these authors rethinking fiscal policy in the light of this? >   ;-) >    The results of our analysis are as follows: ...Read More