Archive for the ‘Central Banks’ Category
Speculation of Greek restructuring based on false assumption it is insolvent (though apparently his government favors some sort of restructuring…)
Don’t underestimate massive harmful effects for Greece, euro zone from restructuring
Effects far reaching, difficult to calculate
Would prompt more bailouts since domestic banks would be pushed to the brink
Restructuring risks contagion
Reuters say the EU heads of state will discuss the future role of Bini-Smaghi, an Italian, when Italy’s Drgahi takes the helm of the ECB.
My guess is he will switch places with Draghi and run the Bank of Italy. That’s what happened when Trichet went to the ECB and Christian Noyer went from the ECB [...]
On the flip side, the Cleveland Fed’s Pianalto says the labor market is still a long way from where it needs to be.
As noted yesterday, Kotcherlakota is a voter and he voted to maintain the status quo at the last FOMC meeting despite his tough talk…
Also on the wires, the Fed’s Lockhart (Atlanta) says he [...]
Expects trend of tighter monetary policy to continue
Impossible to calculate irrational steps like Greece leaving the euro or restructuring its debt
The Bank of England will downgrade Britain’s economic forecast this week, confirming that the recovery is stalling as the Government’s austerity measures take their toll.
After this week, he looks slightly more credible…
Exports a definite plus for the economy
Payroll employment to to expand over next two years
Going on hold would give FOMC time to reassess
May keep rates near zero while on hold
Hold may keep “extended period” phrase intact
Confident US can weather oil shock without slowdown
Financial conditions have eased considerably
On hold near zero ain’t the greatest thing every to happen to the dollar…beats more QE though…
If anyone should know, it is the Governor of the BOJ. For those too young to remember, in the 1980s, Japan was China before China was China….
That’s not what commodity bulls want to hear as they swim in a pool of red ink…
If US fiscal policy is tightened (budget cut), monetary policy will have to be looser for longer
That sound you hear is fiscal conservatives vomiting after hearing those two comments back-to-back…
EUR/USD is firm, at 1.4918.
Small 1.4925 and larger 1.4950 exotic triggers are rumored.
