Some Good News For Prime Minister Harper Ahead of Canadian Election
September 30, 2008
Canadian voters go to the polls on October 14th in early elections called by 49-year-old Conservative Party leader Stephen Harper, who has led a minority government since January 2006. A similar result seems likely. He is opposed by Stephane Dion, the Liberal Party chief. Canada has a parliamentary system of government. The state of the […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Money Markets Remain Highly Illiquid
September 30, 2008
The U.S. Congress will not gather again until Thursday. Chinese markets are closed all week. The Nikkei slumped 4.1%. Elsewhere in Asia, stocks fell 4.7% in Vietnam, 3.6% in Taiwan and 1.5% in the Philippines but rose 2.0% in India and 0.8% in Hong Kong. In Europe, the Dax has lost 0.8%, but the Cac40 […] More
Currency Markets in the News
Japanese Fiscal Half Ending on Ominous Note
September 30, 2008
Japan releases a bunch of data on the final session of each month, and all of it so far has been weaker than expected. The Nikkei slumped 4.7% in the morning trading session to show a drop of slightly more than 10% from the end of the last fiscal year on March 31st. 10-year JGB […] More
Bonds and Stocks
Back to The Drawing Boards
September 29, 2008
It seems inconceivable that the Congress will not eventually pass a comprehensive plan to promote the recapitalization of financial institutions, ease the pain of debt deleveraging, and restore a better-functioning money market. But the game of chicken continues, and tomorrow is a day off for lawmakers for the Jewish New Year. The TARP plan was […] More
Currency Markets in the News
ECB Understated Growth Slowdown
September 29, 2008
The ECB Governing Council meets this Thursday. Officials have not hinted that a rate cut might be made, so such a move would be a huge surprise to a market that expects to be forewarned ahead of ECB policy changes. A statement released after policymakers met on September 4th avoided panic, calling the slowdown “an […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Banking Crisis Slams Into Europe
September 29, 2008
The Benelux governments nationalized Fortis, Belgium’s biggest employers which will sell off AMB Amro. The British government nationalized the mortgage lender, Bradford and Bingley. Germany’s Hypo Real Estate in a rescue, too. The third largest Icelandic bank was nationalized. Money market strains in Europe intensified despite news that U.S. House of Representatives is likely to […] More
Larry's Blog
U.S. GDP Growth Under Different Presidencies
September 26, 2008
In this fifth and final examination of a key economic indicator during the last nine presidencies, I turn to the most important one of the bunch, real GDP growth. Price stability, a healthy labor market, a well-regarded and firm currency, and a robust stock market are each favorable pre-conditions for sustainable and brisk expansion in […] More
Foreign Exchange Insights and Next Week
Weekly Foreign Exchange Insights: September 26th
September 26, 2008
The wires, newspaper, and video press have been loaded with dire predictions for the dollar, even as uncertainty remains high regarding the details of a massive and comprehensive U.S. government rescue plan for bad financial assets. Confidence remains weak that Secretary Paulson’s plan will be effective and strong that disaster will ensue if no action […] More
Currency Markets in the News
First-Half Growth in the G7
September 26, 2008
As a result of a downward revision in U.S. GDP growth last quarter to 2.8% at a seasonally adjusted annualized rate (saar) from a previous estimate of 3.3%, economic growth in the first half of 2008 (that is between 4Q07 and 2Q08) amounted to 1.8% saar. Such a pace represents little change from growth of […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Largest U.S. S&L Failure Ever
September 26, 2008
Washington Mutual was closed by the government. JP Morgan bought its deposits and branches. Action followed stalled talks over Paulson’s Troubled Asset Relief Program. House Republicans balked and offered a different mortgage insurance plan. Democrats accused McCain of promoting this action. Stocks mostly fell in Asia and U.S. equities are indicated to open much lower. […] More
