Moody’s downgrades 16 Spanish banks
Home prices fell in a record number of Chinese cities in April (46 out of 70) according to the National Bureau of Statistics, with Wenzhou prices down -12.3% YoY, being the worst. There does not seem to be any respite. Nationwide prices are -1.2% lower YoY in April – in reality much, much lower. Car...
Crude Oil Inventories
Click to enlarge: Bloomberg.com – Unlocking the Crude Oil Bottleneck at Cushing The U.S. oil infrastructure is the product of four decades of rising imports and falling domestic supply. As those trends have reversed over the last few years, America’s network of pipelines has failed to keep pace. Designed in part to ferry oil and...
Department of Energy Pretends that Low Levels of Radiation Are Safe
Nuclear Cheerleaders Use Voodoo Science to Pretend Low Levels of Radiation Are Safe … Or Even Good For You Dr. Peter Karamoskos – a nuclear radiologist and a public representative on the radiation health committee of the Australian Radiation Protection and Nuclear Safety Agency – wrote in the Sydey Herald last year: You have to...
Will Greece Leave The Euro?
Click to enlarge: The Financial Times – Fear grows of Greece leaving euro Eurozone central bankers have talked publicly for the first time of managing a possible Greek exit from Europe’s monetary union as stalemate in Athens talks on a coalition government raises the prospect that Greece will renege on the terms of its...
Liquidity Risk and Credit in the Financial Crisis
The 2007–08 financial crisis was the biggest shock to the banking system since the 1930s, raising fundamental questions about liquidity risk. The global financial system experienced urgent demands for cash from various sources, including counterparties, short-term creditors, and, especially, existing borrowers. Credit fell, with banks hit hardest by liquidity pressures cutting back most sharply. Central...
1994: Actions Needed to Protect the Financial System
Source: US Government Accountability Office
A Run On Greek Banks?
Click to enlarge: Comment The chart above shows the monthly level of deposits in Greek banks through the latest release, March 31. The Wall Street Journal – As Bank Withdrawals Surge, Athens Relies More on ECB Greek depositors withdrew €700 million ($898 million) from the country’s banks on Monday, fueling fears of a bank run...
Back to following Greece
Australian consumer confidence rose +0.8% to 95.3, though near the weakest level this year. The wage price index rose by +0.9% last Q, on a Q/Q basis. The A$ remains weak and the RBA is likely to reduce rates further, in particular, as China slows; Yuan forward rates declined to the weakest level this year....
Macey’s Apologia for JPMorgan’s “Hedginess”
Macey’s Apologia for JPMorgan’s “Hedginess” By William K. Black Jonathan Macey is one of the world’s most vitriolic opponents of effective financial regulatory cops on the beat. Those regulatory cops on the beat are essential to prevent a Gresham’s dynamic. When cheaters prosper markets become perverse and bad ethics drives good ethics...
The Great Moderation, Forecast Uncertainty, and the Great Recession
The Great Recession of 2007-09 was a dramatic macroeconomic event, marked by a severe contraction in economic activity and a significant fall in inflation. These developments surprised many economists, as documented in a recent post on this site. One factor cited for the failure to anticipate the magnitude of the Great Recession was a form...
Will Soaring Rents Lead To Higher Core Inflation?
Chicago Real Estate Daily – Rents rise again in sizzling downtown apartment market Downtown apartment rents hit another high in the first quarter, and more hikes may be in the offing amid a red-hot rental market. The average effective rent at top-tier, or Class A, downtown apartment buildings rose to $2.50 a square foot in...
Thinking the Unthinkable
Thinking the Unthinkable David R. Kotok May 16, 2012 Chapter two of our old book on Europe outlined the benefits of convergence. Charts and data displayed the boost to growth that occurs when interest rates coalesce at a lower level and when credit spreads narrow. The multiplier effect is huge. Europe experienced it during...
