Obama Boehner Fiscal Cliff Meeting: Grasping For Last-Minute Solution
President Barack Obama and House Speaker John Boehner (R-Ohio) met for nearly an hour on Thursday evening in their latest attempt to break the impasse on impending tax hikes and spending cuts. True to form, neither said much of anything about what was discussed.
S&P ordered by Japan financial watchdog to improve rating system
Standard & Poor’s Japan unit was ordered by the nation’s financial watchdog to improve its system for verifying and updating credit ratings in the regulator’s first action against a ratings company.
Standard & Poor’s downgrades six Canadian financial institutions
The Canadian Press
TORONTO – Standard & Poor’s has downgraded the ratings of six of Canada’s financial institutions by one notch.
The Wall Street Journal says the credit ratings agency cites a softening economy, low interest rates and pressure from the headwinds facing Canada’s economy. S&P says the risk for the Canadian banking sector is increasing and expects intensifying competition for loans and deposits will pressure profit growth.
Fisher sees Fed trapped in ‘Hotel California’ unable to leave QE
Bloomberg (via Futures Magazine)
Federal Reserve Bank of Dallas President Richard Fisher said the central bank may never be able to exit its unprecedented bond-buying program and that the efficacy of the stimulus measure is “declining over time.”
Fixed income exits set to soar as capital costs bite
Less than half of investment banks are committed to running global fixed income businesses as regulatory and commercial pressures build, according to new research, fuelling fears of a liquidity drought in the secondary bond markets.
Bank of America sues MBIA, claiming tender offer interference
Bank of America Corp (BAC.N) has sued bond insurer MBIA Inc (MBI.N) in a New York state court for allegedly interfering with a tender offer to buy MBIA’s bonds.
Senior Deutsche Bank lawyer jailed in raids – sources
A senior in-house lawyer at Deutsche Bank (DBKGn.DE) closely involved with its legal battle with the late media mogul Leo Kirch is among those jailed following tax raids at the bank, two sources familiar with the proceedings told Reuters.
Forex: Euro Struggles On Deepening Recession- ECB Rate Cut On Horizon
The Euro is struggling to hold its ground on Friday amid the slew of dismal data coming out of the region, and the single currency remains poised to face additional headwinds over the remainder of the year as the deepening recession dampens the outlook for growth and inflation.
INVESTMENT FOCUS-So much uncertainty, so little volatility
Equating economic uncertainty with financial market volatility this year would have been a dangerous game.
A Fed Focused on the Value of Clarity
The New York Times
The Federal Reserve’s decision on Wednesday to announce specific economic objectives for its policies would have stunned and dismayed earlier generations of central bankers, who regarded secrecy as a virtue and obfuscation as a prized technique for manipulating financial markets.
The Federal Reserve’s Zombie Economy
Deutsche Bank is out with a new warning that says the Federal Reserve’s latest round of an estimated $1.02 trillion in total annual purchases of U.S. Treasuries and mortgage-backed securities is creating lemon socialism, a U.S. economy filled with the financially undead.
Federal Reserve Moves in Opposite Directions on Fixing the Economy
Here’s a flash. Things aren’t always as they seem in Washington.
Case in point: This week headlines around the world screamed that the Federal Reserve Board is making lowering unemployment, not controlling inflation, its key objective. It will continue holding down interest rates and expanding the money supply so long as unemployment remains above 6.5 percent. This means it will extend its unprecedented four years of quantitative easing indefinitely.
Global economy: Central bankers gone wild
Central bankers aren’t exactly the most exciting people.
Sure, they’re smart.
Yes, they understand the complex interplay of economics, finance, politics, markets and all the other factors that make the global economy fly or fizzle.
Fed hawks take aim at central bank’s latest policies
Reuters (via Chicago Tribune)
Two top Federal Reserve officials on Friday raised questions about the U.S. central bank’s unprecedented decision to tie monetary policy to specific economic guideposts, and warned that its latest policy actions risk straying into fiscal territory.
Economic Reports Ignored
The Treasury sold $66 billion of securities this week. There was only a lukewarm reception for yesterday’s auction of $13 billion of thirty year bonds.