Greece Bags $5 Billion From Investors Offering Killer Yield As Investors Bet On ECB Backing – Vincent Fernando – Greece successfully pulled off a five-billion euro bond issue that was massively over-subscribed, indicating the investors loved the 6.5% yield: … – Money Game at Business Insider
Volcker: No Way The US Economy Can Stand On Its Own Without Stimulus – Joe Weisenthal - This is not the time to pull back spending- Money Game at Business Insider
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Banks scramble to raise cash after Fannie Mae cuts – By Richard Leong and Lynn Adler – Banks scrambled to raise cash this week after U.S. mortgage finance agency Fannie Mae abruptly slashed the number of financial institutions that hold its funds, market sources said on Friday. The move forced banks dropped by Fannie Mae (FNM.N) to liquidate Treasuries and other short-term securities and borrow in the open market so they could return money Fannie Mae had with them, they said. This caused an increase in short-term interest rates across key U.S. loan markets since Wednesday.- more – Reuters
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2 interesting discussions – Mark-to-Market Accounting: OneWest and WaMu; Commentary by Brian Wesbury and Robert Stein: Bernanke Finally Fingers Mark-To-Market – Christopher Whalen – The Institutional Risk Analyst
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quite interesting – Debating Debtflation – By Spyros Andreopoulos, Joachim Fels & Manoj Pradhan – The Greek crisis has brought sovereign debt to the forefront, capturing markets’ attention. We think another dimension of the sovereign issue, the inflation risks inherent in high levels of public debt for economies that can print their own currency, is being overlooked by the markets. …. We calculate that, over the next ten years, on average,
1. a 5% deficit would require 9% inflation
2. a 3% deficit would require 6% inflation
3. achievement of a 2% inflation target requires a 1% of GDP budget surplus.
Scary stuff. – Morgan Stanley
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chain reaction? – ‘On the Edge’ Banks Facing Writedowns After FDIC Loan Auctions – … The auctions may have wider repercussions. Of the $50.4 billion in loans seized from failed banks currently held by the FDIC, 63 percent involve participations by other lenders, according to data provided by agency spokesman Greg Hernandez.
“These banks can’t believe that the regulator they pay to protect them is going to sell these loans to someone who can flip them and cause them serious losses,” said Robert Reynolds … – By James Sterngold – Bloomberg BusinessWeek
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coming soon! – HBO to Dramatize The Financial Meltdown In All Its Gory Details – by James Camp – MEDIAite.com
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The Way We Live Now: Schools Move To Four Day Week To Combat Budget Crises – Gregory White - Business Insider
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No Credit – Timothy Geithner’s financial plan is working—and making him very unpopular. – by John Cassidy – The New Yorker
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The Mother of All Carry Trades has Started – Posted by: madhedgefundtrader – It is time to start scaling into a major short in the yen. The Euro/Yen cross is pointing the way. The prospects of Japan raising rates are nil. The government’s pool of lenders is drying up. The savings rate is plummeting. The bill for the world’s worst demographic outlook is coming due. Macro investing at its finest. Look for ¥120 in a year. – Zero Hedge