Posts from Thursday Jul 11 2013

The Closer


The policy trilemma strikes! again. Read more

Glass-Steagall, reanimated


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Fed personnel issues are a problem because they are relevant

Last September, after announcing open-ended asset purchases and making his first strong commitment to allowing above-target inflation (and keeping monetary policy accomodative) even after the economy strengthens, Ben Bernanke made an interesting point about the Fed’s credibility to make such a future promise.

It was about the fact that the voting membership of the FOMC changes over time: Read more

Reaal resurrection?

You’re Jeroen Dijsselbloem.

You expropriate subordinated bondholders of a Dutch bank, SNS Reaal — insisting that the bonds “entirely lose their value, which would also have happened if SNS had gone bankrupt” rather than receive a €3.7bn bailout. It’s a huge precedent for bail-ins. It’s a new order. No reverse-ferreting.

Months later… Read more

Unconventional stimulus, the Bloomberg way

Bloomberg Businessweek cover

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Shadow financing charted in China, and a property catch-up

Chart from CreditSights (click to enlarge):

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Markets Live: Thursday, 11th July, 2013

Live markets commentary from 

The (early) Lunch Wrap

BoJ says Japanese economy is ‘recovering’ || South Korea’s central bank kept rates on hold || China accuses GSK of bribing officials || China’s big four banks extended a lot of credit so far this month || || US banks to shuffle assets over leverage rules || US swap regulator close to deal on cross-border rules || PC shipments fall for fifth consecutive quarter || Quebec train set too few brakes, with deadly result || Chevron foresees lower output || Markets Read more

Further reading

Elsewhere on Thursday,

– Indian foreign reserves are declining.

– The Vix is flawed.

– ETFs, and a liquidity promise that makes some nervous.

– A record crude inventory draw. Read more

The 6am Cut London

Asia ex-Japan stocks rise, metals strengthen, post-Bernanke || BoJ maintains, talks of ‘recovery’ || Yen strengthens || July credit surge at China’s big banks || US banks plan to move assets to meet leverage ratio || CFTC close to foreign companies swaps rule || Bank of Korea holds rates || Chevron says oil earnings hurt by price fall  Read more