Posts from Tuesday Oct 1 2013

The Closer


– “What I saw as a Wall Street Trader“.

– The career prospects of overeducated Americans.

– Boom, bust, flip — the US housing recovery and inequality.

– 10 events that changed the repo marketRead more

Government shutdown: the Heisenberg uncertainty principle

Gold apparently did not get the memo about the government shutdown. Gold prices have consequently been falling all day. Awkward.

 Read more

The shutdown and economic data

From Steven Englander of Citi, a list of US data releases possibly now subject to delay because of the shutdown:

And those unlikely to be delayed:

“In view of the general economic situation…

…do you think that now is the right moment for people to make major purchases such as furniture, electrical/electronic devices, etc.?”

Nomura posed the question. Here’s the answer: Read more

Ad maiorem IFRS gloriam

It does not lend money (except rarely), it does not issue or underwrite securities, it does not serve business customers. It does have two sovereigns as customers, but they are regularly confused as one sovereign.

It would like you to know that it does not have any anonymous accounts.

Guess the bank — which has just filed its first ever annual report (for 2012): Read more

Markets Live: Tuesday, 1st October, 2013

Live markets commentary from 

The (early) Lunch Wrap

Good morning New York,


The Great British 95% LTV

In contrast I am an optimist. I believe in free markets.

–George Osborne, Conservative party conference 2013

Details TBC, of course. But UK banks will be lending mortgages with a five per cent deposit in the very near future, under the rushed-forward Help to Buy 2 scheme.

And that means the UK government will be guaranteeing themnot the borrower — the next 15 per cent of mortgage value. Hence the fee paid by lenders for the guarantee (90bps for a 95 per cent loan to value, less for lower LTVs, apparently). Read more

Further reading

Elsewhere on Tuesday,

– The cost of a showdown. (Don’t forget the jobs report)

– Remember when Republicans were worried about ‘economic uncertainty’?

– The “Not So Great” re-coinage of 1696.

Lessons froom the Simon v Ehrlich bet. Read more

The 6am London Cut

Markets: Asian shares rose after tumbling the most in six weeks yesterday while Treasuries fell as sentiment among Japanese manufacturers increased to the highest since 2007 and investors gauged the impact of a partial shutdown of the U.S. government. Australia’s dollar gained on retail sales data. The dollar held steady. (Bloomberg) (Reuters) (Financial Times)

Shut down: The US government will start to shut down numerous agencies on Tuesday and send tens of thousands of workers home after Republicans and Democrats failed to bridge their differences over the budget. A series of votes in the Republican-controlled House of Representatives and the Democratic Senate left the two sides stuck at the same position at midnight on Monday where they had started the day, with conservatives refusing to pass a short-term budget without a delay in Barack Obama’s health law. (Financial TimesRead more