Archive for September, 2014

Goldilocks is Back

Sunday, September 7th, 2014

Back in the heyday of Alan Greenspan as Chairman of the Federal Reserve someone (maybe him) coined the expression Goldilocks economy to describe the macroeconomic state then prevailing. Here a commentator for the WSJ applies that same term to the economy in 2014. He posits that we will have modest ...

Obama To Speak to Nation Wednesday

Sunday, September 7th, 2014

President Obama will outline his strategy for defeating the Islamic radical group ISIS in a speech to the nation on Wednesday.

New Polls Shows Scottish Independence in Lead for First Timer

Sunday, September 7th, 2014

This should poll should galvanize who favor continued union with the UK. As the story suggests it is just one poll but it is the first poll to show independence leading. It was only a short while ago that continued union held a 22 point lead. This poll shows that ...

Plosser: Raise Rates Sooner Rather Than later

Saturday, September 6th, 2014

Via the WSJ: Fed’s Plosser: Fed Should Raise Rates ‘Sooner Rather Than Later’ Charles Plosser By Michael S. Derby NEW YORK–Federal Reserve Bank of Philadelphia leader Charles Plosser said Saturday the U.S. central bank will likely need to raise rates “sooner rather than later” to keep the economy running smoothly. “I am not suggesting that rates ...

Not Exactly a Profile in Courage

Saturday, September 6th, 2014

President Obama has decided to refrain from an unilateral move on his part to reform immigration and will delay such an order until after the November midterm election. The delay also flies in the face of a statement he made the other day when he said he would act soon. ...

Blowing Bubbles

Saturday, September 6th, 2014

Via Bloomberg: Fed Economists See Financial Stability Risk From Low Rate By Jeff Kearns Sep 5, 2014 5:31 PM ET Save Monetary policy accommodation to help the economy may backfire by creating conditions that could undermine financial stability and cause sharp downturns, according to a report by two top Federal Reserve researchers. Central ...

Scottish Independence

Saturday, September 6th, 2014

I will confess that I have not followed the upcoming vote in Scotland on departing the United Kingdom. The FT has an article which discusses the consequences if the vote is Yes and Scotland goes its own way. The article discusses the various negotiations which would take place to make ...

Weekend Hilsenrath Article

Saturday, September 6th, 2014

This was on the website last evening. It does not add much to our store of knowledge and recapitulates information already in the domain. Via Jon Hilsenrath and the WSJ: Economy Fed Debate on Rates Heats Up Soft Jobs Report Complicates Calculus a Bit, but Some Officials Want Tighter Tie to Economic Performance By Jon Hilsenrath Sept. ...

Evading Dodd Frank Regs

Saturday, September 6th, 2014

The solons in Washington passed a law which constrains and significantly restrains  the plain vanilla swaps business and dealers are now exploiting what they view as a loophole in the law. The regulators are unhappy as the WSJ article discusses: Markets CFTC to Scrutinize Swaps Loophole Massad Says Commission Is Working With Fellow ...

WSJ Article in Fed (Bearish Spin)

Friday, September 5th, 2014

Justin Lahart authors the Heard on the Street column at the WSJ and he has an interesting column this afternoon on the timing of FOMC language change. He posits a shift in September. I have not seen any Fed article today from Hilsenrath so I am wondering if he has ...