Last week was very interesting and very tiring. I started off Monday in Dallas at a dinner with a very lively Texan crowd, and a guest appearance by an ex-ECB governing council member. Mixing Texan-style EMU bearishness with southern Mediterranean central bankers was...
The following passage from the minutes of the September 2011 FOMC meeting has become market gospel on why the Fed will not lower the IOER - “Participants discussed whether to reduce the IOR rate, weighing potential benefits and costs. A number of participants judged...
It should come as no surprise to anyone that major commercial banks manipulate Libor submissions for their own benefit. The OTC derivatives markets was designed by the big banks, for the big banks, to ensure that as they set up their own private securities exchanges -...
Given the history of EU leadership meetings, everyone has become conditioned to expect disappointment. The market set itself up for just such a result last Friday, and the short covering rip fest in risk assets shredded even the most hardened of bears! As our readers...
The Eurogroup communique was short and to the point- http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/131359.pdf And while some folks will focus on the irrelevant removal of subordination in the Spanish bank bailout terms - the big deal is in the...
Nearly all published research on the "fiscal cliff" looks at the static drag on the US economy from the projected tax rises and spending cuts. In economics we call this partial equilibrium analysis - and outside the ivory tower, this type of work translates into VERY...
Nearly all published research on the "fiscal cliff" looks at the static drag on the US economy from the projected tax rises and spending cuts. In economics we call this partial equilibrium analysis - and outside the ivory tower, this type of work translates into VERY sloppy predictions! We cannot look at fiscal policy changes […]
