The market is not amused…
*BERNANKE SAYS STAGNATION IN LABOR MARKET IS `GRAVE CONCERN’
*BERNANKE SAYS FED WILL BOOST ACCOMMODATION AS NEEDED FOR GROWTH
*BERNANKE SAYS HE WOULDN’T RULE OUT FURTHER ASSET PURCHASES
*BERNANKE: QE `SIGNIFICANTLY LOWERED LONG-TERM TREASURY YIELDS’
*BERNANKE SAYS IMPACT OF QE IS `ECONOMICALLY MEANINGFUL’
*BERNANKE: BIG BOOST IN QE MAY REDUCE CONFIDENCE IN SMOOTH EXIT
Ben Bernanke’s Jackson Hole speech is out.
The full speech is below
Monetary Policy since the Onset of the [...]
Europanic is back in style. After a monthslong reprieve initiated by the European Central Bank’s decision to offer the continent’s banks nearly unlimited quantities of low-interest medium-term loans, the sovereign debt crisis has returned. This time ground zero is Spain rather than Italy, but the pattern is familiar. Interest rates on Spain’s debt went up a little, putting further strain on Spain’s budget. That called its solvency into question and pushed [...]
Spanish banks’ borrowings from the European Central Bank rose in February to the most on record with Spain-based banks taking almost half the total for the region as the central bank stepped up its emergency lending.
Average net borrowings by banks in Spain climbed to 152.4 billion euros ($199 billion) in February from 133.2 billion euros in January, the Bank of Spain said on its website today. Lenders in the [...]
by Simone Foxman
In a complex editorial published in the Financial Times this morning, PIMCOfounder and co-CIO argues that the continued depression of interest rates on U.S. Treasury bills might not really be helping the economy.
In fact, the indefinite extension of low rates could just be throwing the U.S. into a Japanese-style lost decade.
His argument appears to focus on Operation Twist, a Fed program meant to push down yields on long-term government securities through sales [...]
THE European Central Bank has come under criticism for its failure to act as lender of last resort to embattled sovereigns. Yet when it comes to banks, the traditional recipients of central bank support, the ECB is lender of last resort on steroids. Today, it lent €489 billion to 523 banks at 1%, at its first three-year refinancing operation. It was its largest refinancing ever.
Banks used some of that to [...]
By: The Canadian Press
Date: Tuesday Dec. 13, 2011 9:18 AM PT
OTTAWA — Canadians keep taking on more debt even as they get poorer, a new Statistics Canada report shows.
Average household debt in Canada hit a new record high of almost 153 per cent to disposable income in the third quarter, a sizable jump from 150.7 per cent the previous quarter, the agency reported Tuesday.
As well, household net worth declined by 2.1 per cent [...]
Today, the ECB has just confirmed our worst fears, in that the shadow situation is likely worse than expected. From Bloomberg:
ECB SAID TO CONSIDER LOOSENING RULES ON ABS AS COLLATERAL
ECB SAID TO PLAN LOOSENING OF COLLATERAL CRITERIA FOR LOANS
ECB SAID TO CONSIDER TWO-YEAR LOANS FOR BANKS
ECB SAID TO LOOK AT ALLOWING MORE UNCOVERED BONDS AS COLLATERAL
Incidentally none of these announcements were unexpected: Goldman predicted they would all happen (odd how [...]
This Telegraph article on the prospects for a “second credit crisis” (the first one ended?) is getting attention:
Banks alone must refinance about â‚¬400bn (Â£343bn) of debt in the first half of the year, but add in the more than â‚¬500bn European governments must replace over the same period, as well as further hundreds of billions of euros of [...]