Archive for September 2008

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

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