Some Post Thanksgiving Reading

November 30th, 2008 8:41 pm | by John Jansen |

Swedish auto makers Saab and Volvo may seek aid from the Swedish government.

The ECB will meet on Thursday and I found this interesting snapshot of the factors the ECB will consider as it gathers.

Reports from Japan indicate that the BOJ will hold an emergency meeting to discuss methods of battling the credit crunch.

This is a tad dated but it is an interesting article nonetheless from Professor Hamilton at Econbrowser.

And from the blog  Accrued Interest (which was my first choice for a blog title when I began this 11 months ago) an excellent summary of the new Federal Reserve program to revive the asset back market for consumer debt

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  1. 7 Responses to “Some Post Thanksgiving Reading”

  2. By kristi on Nov 30, 2008 | Reply

    Hamilton lost me on the last part of his argument. The Fed should be buying TIPS?

    The Fed is in a situation that is beyond perception management, with respect to inflation and pretty much everything else!

  3. By John Jansen on Nov 30, 2008 | Reply

    TIPS are as cheap as they have ever been. So if the job of portfolio manager is to buy that which is cheap , then that is a good place to begin.

  4. By kristi on Nov 30, 2008 | Reply

    I do not think what we are seeing with TIPS represents actual concerns about inflation as much as concerns about liquidity in a market where arbs are dealing with their own capital constraints and cannot participate. I think this is the Fed’s position too and why the Fed stopped publishing TIPS inflation expectations. I doubt the price of TIPS is giving Bernanke many restless nights in that respect. If the Fed wants to jump in as an arb in that market though, I doubt few TIPS investors would complain.

    It is pretty clear that what the Fed and Treasury are trying to do is relieve the capital constraints of financial institutions, which would probably be a pretty efficient way of addressing this problem if their capital constraints were not as extreme.

  5. By steve megremis on Dec 1, 2008 | Reply

    john…do you believe the fed/treasury will actually expand last week’s announcement of their purchase of MBS and other asset backed securities to include CMBS…?…

    i know they hinted that the program could be expanded for just this purpose but my take was that this was included in the announcement simply for impact…in other words, why not try to get a rally going in CMBS with just the hint of future purchases…

    other than perhaps helping out the regional banks and pension/insurance funds that hold alot of these securities, what could possibly be the national interest in purchasing CMBS…?…

    i am very interested in your thoughts on this as my fund has some decent sized short positions in some of the REITs…and obviously, an announcement to purchase CMBS would boost these reit share prices…

    thanks, steve

  6. By paul on Dec 1, 2008 | Reply

    what’s the reason for the real yields going down as the time to maturity gets longer?

  7. By steve megremis on Dec 27, 2008 | Reply

    john…allow me to be the first to coin a phrase…”generation B” or as it will be known GenB…

    i googled it to make sure it had never been used before…

    going forward it will refer to the bailout generation…mark my word…

    if only the young had any idea what thier parents and grandparents are doing to their futures with this never-ending orgy of bailouts…

  8. By steve megremis on Dec 27, 2008 | Reply

    Generation Bailout or Gen B as it will come to be known…this is clarification for future google searches when the new york times attempts to identify the earliest use of the phrase…ha

    my email is StevenM at madrid.com

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