Re: ffm questions

On Dec 18, 2007 1:09 AM, Scott Fullwiler wrote: > Hi Warren > > A few questions on your take on fed funds market data– > > Std dev of fed funds rate is way up since summer compared to normal, but > looking at the high-low numbers, the deviation (at least ...Read More

MBS Repo Markets

Thanks Pat, good report. Yes, the Fed knows the assets won’t go away, and all they want is to see funding spreads narrow to help insure the banks aren’t forced to sell due to funding issues and thereby distort prices beyond prudent repricing of risk. TAF auction (20bb) results announcement will come ...Read More

2007-12-18 US Economic Releases

Housing Starts (Nov) Survey 1176K Actual 1187K Prior 1229K Revised 1232K Building Permits (Nov) Survey 1150K Actual 1152K Prior 1178K Revised 1170K While housing is still down and out, I’m going out on a limb and saying it’s not going to get much worse, and the next meaningful move is up, particularly ...Read More

Libor Settings, Eur, and UK leading the way lower…

Currency TERM Today Monday Friday Thursday Wednesday Tuesday USD ON 4.40 4.4175 4.3025 4.30 4.34 4.4325   1M 4.94875 4.965 4.99625 5.0275 5.1025 5.20375   3M 4.92625 4.94125 4.96625 4.99063 5.057 5.11125 EUR ON 3.8275 3.98875 3.85875 4.04625 4.055 4.05   1M 4.58813 4.92375 4.93375 4.935 4.945 4.9225   3M 4.84875 4.94688 ...Read More

2007-12-17 US Economic Releases

Current Account Balance (3Q) Survey -$183.3B Actual -$178.5B Prior -$190.8B Revised -$188.9B Empire Manufacturing (Dec) Survey 20.0 Actual 10.3 Prior 27.4 Revised n/a Net Long-term TIC Flows (Oct) Survey $48.5B Actual $114.0B Prior $26.4B Revised $15.4B Total Net TIC Flows (Oct) Survey $30.0B Actual $97.8B Prior -$14.7B Revised -$32.8B NAHB Housing Market ...Read More

Greenspan sees early signs of U.S. stagflation

Agree, if food/crude/import&export prices keep rising, there will be serious fireworks between congress and the fed. This will include blaming the fed for the high gasoline prices, for example. Greenspan sees early signs of U.S. stagflation U.S. economy is showing early signs of stagflation as growth threatens to stall while food and ...Read More

Re: liquidity or insolvency–does it matter?

(email with Randall Wray) On Dec 15, 2007 9:05 PM, Wray, Randall wrote: > By ________ > > This time the magic isn’t working. > > Why not? Because the problem with the markets isn’t just a lack of liquidity – there’s also a fundamental problem of solvency. > > Let me ...Read More

Lender of next-to-last resort?

There seems to be an alternative to the discount stigma – is the liquidity problem too big for (orthodox) central banks? The Federal Home Loan Bank System: Lender of Next-to-Last Resort? Morten Bech, Federal Reserve Bank of New York When we look at the FHLB balance sheet, we see a $746b surge ...Read More

A tale of mixed metaphors

Ben Bernanke will save the world, but first we bleed Posted by Ambrose Evans-Pritchard on 14 Dec 2007 at 12:48 The Bernanke ‘Put’ has expired. Are Bernanke’s academic doctrines blurring his vision? The Fed cuts a quarter point, and what happens? Wall Street’s ungrateful wretches knock 294 off the Dow 294 in ...Read More

2007-12-14 US Economic Releases

Consumer Price Index MoM (Nov) Survey 0.6% Actual 0.8% Prior 0.4% Revised n/a CPI Ex Food & Energy (Nov) Survey 0.2% Actual 0.3% Prior 0.2% Revised n/a Consumer Price Index YoY (Nov) Survey 4.1% Actual 4.3% Prior 3.5% Revised n/a CPI Ex Food & Energy YoY(Nov) Survey 2.3% Actual 2.3% Prior 2.2% ...Read More