“ [Credit] spreads won’t tighten until sellers are exhausted.” ( Accrued Interest )
“(T)he fact that people are buying credit protection on Treasury bonds at non-negligible prices does go to show how crazy the markets are right now.” ( Market Movers )
“The U.S. is now ground zero for global inflation .” ( Mankiw Blog )
Add TSLF , or Term Securities Lending Facility, to your Fed lexicon. ( Interfluidity , Economist’s View , naked capitalism , Aleph Blog , FT Alphaville , Calculated Risk , Econbrowser )
TIPS did not like the introduction of the TSLF. ( Alea )
The Fed’s previous easings have not exactly steadied the stock market . ( MarketBeat )
The stock market, on average, moves up after a big move up . ( Crossing Wall Street )
“The lesson is that every business cycle is different as are rules for ...
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During Gas Shortage, Some Discover BiodieselFrom: TampaEthanol.com
Post Date: 2008-09-29 20:52:15
A gas crisis is striking the area of Georgia around Atlanta. With the recent spate of hurricanes and storms knocking out the Gulf Coast’s and Southeast U.S.’s refining of non-renewable petroleum, drivers are finding a shortage of fuel in the region.
But this story in the Atlanta Journal-Constitution says some enterprising Atlantans and other people from across the country are discovering the beauty of alternatives, in particular, biodiesel:
Driven to help the environment, or ...
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Substantial Power Generation from Domestic Geothermal ResourcesFrom: docuticker.com
Post Date: 2008-10-01 20:39:28
Substantial Power Generation from Domestic Geothermal Resources
Source: U.S. Geologial Survey
Geothermal power production could significantly add to the electric power generating capacity in the United States.
The U.S. Geological Survey assessment released today is the first national geothermal resource estimate in more than 30 years.
The results of this assessment show that the United States has an estimated 9,057 Megawatts-electric (MWe) of power generation potential fro...
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Pirates in the Gulf of AdenFrom: feeds.feedburner.com
Post Date: 2008-10-01 20:44:54
Somali pirates in small boats can be seen alongside the hijacked MV Faina. The captain of the hijacked ship off the coast of Somalia said one crew member had died (U.S. Navy/AP Photo).
The U.S. Navy and Marines have surrounded some very important cargo in the Gulf of Aden near the Somalian coast.
U.S. warships have surrounded the MV Faina, a Belize-registered ship that was hijacked by pirates off the lawless coast of Somalia last week.
While there’s no gold or precio...
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Wednesday Market Roundup: High VIX Means More Market VolatilityFrom: seekingalpha.com
Post Date: 2008-10-29 11:37:42
Jordan Kahn submits: The market looked like it might give back some of Tuesday’s outsized gains after the open Wednesday morning, but so far it has been hanging in well. The Fed meets today (Wednesday) at 2:15pm ET and the fed funds futures are fully pricing in a 50 basis point cut in rates. That would take the target rate from 1.5% down to 1.00%.
There is continued talk that Japan could cut its interest rates further, to help stem the rise in the Yen. This helped spur the Jap...
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Fed in panic mode, running out of headroom.From: fried.dynalias.net
Post Date: 2008-10-29 11:41:34
In order to help stimulate the economy, the Federal Reserve cut the overnight lending rate to 1%, tying the lowest rate ever . I’ve got a few problems with this move:
We’re getting dangerously close to deflationary territory here; if the inflationary trend reverses (and we’re seeing that at least in fuel costs right now), we could end up in a nasty feedback cycle like Japan did in the ’90s.
We just had a major problem with credit markets freezing up. Doesn&...
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Global shares recover driven by rate cut hopesFrom: financemarkets.co.uk
Post Date: 2008-10-29 04:29:01
It is believed that the US Federal Reserve will cut interest rates this week, which has boosted shares worldwide following a severe decline earlier this week on fears of a global recession.
The Fed is widely expected to cut rates by half a percentage point to 1%. This resulted in a sharp rise on Wall Street [...]...
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Safe havens against stagflationFrom: abnormalreturns.com
Post Date: 2008-03-04 12:17:26
The markets are currently dealing with any number of cross-currents. One need only look to the fixed income markets to see how fears of stagflation are playing out in real time. Investors in search of a safe haven against stagflation are rapidly running out of options.
First, yields on the five-year TIPS are now below zero! In short, investors desperate for a “safe” way to play higher inflation have bid the bonds to levels not previously seen. (via Calculated Risk ...
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Tuesday links: corporate cash cacheFrom: abnormalreturns.com
Post Date: 2008-03-04 09:03:37
U.S. corporations are flush with cash . Net debt ratios hover around zero. ( NYTimes.com )
Will a weak economy prompt more corporate divestitures ? ( Financial Week )
“(N)ow both the bond market and foreign exchange show acute concern for the US economy .” ( FT Alphaville )
Investors are increasingly turning to currencies as an asset class . ( Capital Spectator )
Have commodity index investors pushed prices too hig...
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Wednesday links: follow the FedFrom: abnormalreturns.com
Post Date: 2008-03-05 08:56:08
“In standard models of asset pricing, negative real interest rates are most likely to arise if growth expectations are particularly low or if uncertainty is particularly high.” ( Mankiw Blog )
Why are other central banks not playing follow the Fed ? ( WSJ.com , NYTimes.com )
How much attention should central banks pay to commodity-led inflation ? ( FT Alphaville )
Searching for safe havens in times of stagflation. ( Market Blog...
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How to lie with statisticsFrom: abnormalreturns.com
Post Date: 2008-03-05 12:40:35
“ How to Lie With Statistics ” by Darrell Huff is a venerable book on the many ways we as end-users of statistics can be misled by “the numbers.” As participants in the capital markets we are bombarded with various statistics on a daily basis. From various governmental sources we receive data on the state of the economy. From companies we receive earnings report that purport to tell us how the firm is doing.
This post is not about the deliberate manipulation of ...
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