Central Bank Watch
Bank of Israel Cuts Key Rate for Eighth Time
March 23, 2009
Somewhat unexpectedly, the Bank of Israel, which had already reduced its benchmark rate seven times to 0.75% from 4.25% prior to October 7th, announced a 25-basis point further reduction to 0.5%. The statement released by monetary authorities gave familiar reasons for the cut: weakening domestic and global growth prospects, a credit crunch, downward-trending inflation, and […] More
Larry's Blog
Free Lunches Served on the Internet
March 23, 2009
An editorial discussing the proliferation of Internet companies without ample income in the latest issue of The Economist concludes that “the demise of a popular but unsustainable business model now seems inevitable.” Survival through the cash cow of advertising worked for Google, but that strategy has not been reproduced as successfully as hoped elsewhere. With […] More
Canadian Recession Getting Worse
March 23, 2009
Canadian real GDP dropped 3.4% at a seasonally adjusted annual rate (saar) last quarter. That was the second negative quarter of 2008. GDP had fallen 0.9% saar in the first quarter, and in between there were tiny positive growth readings of 0.6% saar in 2Q and 0.9% saar in the third quarter. GDP increased only […] More
Central Bank Watch
Magyar Nemzeti Bank Left Repo Rate at 9.5%
March 23, 2009
Hungary’s central bank left its benchmark interest rate unchanged as expected and released a statement that identified supporting the forint and avoiding the adverse ramifications of further currency depreciation as the dominant policy guide at this time. The CPI has fallen to levels that officials consider consistent with price stability. but higher import prices are […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: U.S. Unveils Details of Toxic Asset Buying Plan
March 23, 2009
Markets reacted well initially to new details of the U.S. plan to purchase bad bank assets. Treasury Secretary revealed new details in an Op-Ed WSJ column and speaks at 12:45 GMT this morning. Fed, FDIC and Treasury all to play a role. Much of the money to come from government. Some fundamental questions still not […] More
