Larry's Blog
Bailing Out Greece Not Like the 2009 Bail-Out of U.S. Banks
April 20, 2010
Watching the drip-by-drip evolution of talks to avoid a near-term Greek government default leaves me with a feeling of deja vu. Didn’t the plan to infuse major U.S. banks that began in late 2008 also take much longer than expected and include several big and unexpected steps backward along the way? Many faux pas were […] More
Central Bank Watch
Bank of Canada Releases Less Dovish Statement
April 20, 2010
At the third of eight scheduled monetary policy meetings in 2010, the Bank of Canada took three actions, the gist of which points to an initial rate hike getting announced on June 1 after the next meeting. Remarks by officials including a major address by Governor Carney on March 25 already had prepared investors for […] More
Central Bank Watch
Swedish Riksbank Policy Remains on Hold
April 20, 2010
Swedish central bank policymakers left their key repo rate at 0.25%, its level since July 2009, which was what analysts predicted. They released new forecasts, cutting projected headline CPI inflation in 2010 and 2011, reducing 2009 and 2010 growth, but leaving the projected repo rate path as it was. A statement indicates that the onset […] More
Central Bank Watch
Reserve Bank of India Tightens Further
April 20, 2010
India, Asia’s third largest economy, has an intensifying inflation problem. In response, the Reserve Bank of India (RBI) lifted its key lending and borrowing rates on March 19 by 25 basis points each to 5.0% and 3.5% and followed those moves with a second 25-bp increase today to 5.25% and 3.75%. The reserve requirement was […] More
New Overnight Developments Abroad - Daily Update
Weaker Yen and Dollar
April 20, 2010
The dollar gained 0.8% against the yen overnight but otherwise has fallen 1.2% against the Australian dollar, 0.8% versus sterling, 0.7% against the Canadian dollar, 0.5% relative to the kiwi, and by 0.3% against the Swissie and euro. Investors have been reassured by good earnings reports. Chinese stocks buckled another 3.1% in the face of […] More
