Summers Out, Yellen In? – Tim Duy’s Fed Watch
“if you are looking for a candidate of change, Yellen isn’t that candidate. Remember that Yellen was part of the team that cemented the Fed’s inflation target in place at 2%. She has a long history of supporting inflation targets. To truly enact a regime change at the Fed, you need to find a Chair that will challenge that target and rewrite the rules. I am not sure Yellen is that person.”
BIS veteran says global credit excess worse than pre-Lehman – Telegraph
““This looks like to me like 2007 all over again, but even worse,” said William White, the BIS’s former chief economist, famous for flagging the wild behaviour in the debt markets before the global storm hit in 2008. “
Tapering threatens a stormy outlook for America – FT.com
“An eventual return to normalised interest rates will be a welcome development for savers, as well as markets, which have been distorted by the Fed’s intrusions. However, the path to normalisation could be challenging, particularly for US megabanks. It is hard to predict the impact. When was the last time the Fed bought $3.4tn of bonds to keep long-term rates low? Right. Never.”
Push for Yellen to Lead at Fed Gathers Steam – NYTimes.com
“Janet L. Yellen told friends in recent weeks that she did not expect to be nominated as the next chairman of the Federal Reserve. Although she had been the Fed’s vice chairman since 2010 and would make history as the first woman to hold the job, President Obama’s aides made clear throughout the summer that he wanted Lawrence H. Summers, his former chief economic adviser.”
Fed Candidate Kohn Warns Easy Policy Leads to Imbalances – Real Time Economics – WSJ
Merkel Coalition Partner FDP Stumbles Badly in Bavaria State Election – SPIEGEL ONLINE
Fewer Americans Than Ever Trust Gov’t to Handle Problems
Dutch to miss deficit target despite austerity, warns forecaster – FT.com
“A poll released on Monday by the research institute TNS Nipo found just 12 per cent of Dutch voters have confidence in the centrist coalition of Mark Rutte, prime minister, which took office in November.
“It is obvious that [the CPB report] is going to make it even more difficult for the government,” said Peter Kanne, who led the TNS Nipo poll.
In one sense, the CPB report was less grim than many had expected: it foresees the Dutch economy growing 0.5 per cent in 2014, pulling out of a recession that has lasted for more than a year. Many forecasters had feared the government’s plans for €6bn in fresh austerity measures, nearly 1 per cent of Dutch gross domestic product, would impede any growth in the economy.
However, the CPB also sees unemployment rising to 7.5 per cent, purchasing power falling more than 1 per cent and the government deficit coming in at 3.3 per cent, higher than in 2013 and above the EU’s 3 per cent limit.”
U.S. Factory Output Picked Up in August – WSJ.com
“Industrial output increased a seasonally adjusted 0.4% last month and the use of available production capacity inched ahead 0.2 percentage point to 77.8%, the Federal Reserve said Monday. Both figures were in line with economists’ forecasts. “
Summers’s Withdrawal Points Up Party Fissures – WSJ.com
“Raucous and emboldened liberal and conservative wings of Congress are reshaping the power structure in Washington, leaving neither President Barack Obama nor House Speaker John Boehner with a firm grasp on lawmakers ahead of crucial decisions about government spending and the debt ceiling.”
Danske Fires CEO Kolding After Seeking More Qualified Banker – Bloomberg
“Since being dragged through housing bubbles in Ireland and Denmark, Danske has met rising capital requirements and record-low interest rates with cost cuts. Under Kolding, who led A.P. Moeller-Maersk A/S’s container shipping unit before becoming CEO at Danske, the bank introduced a pricing model to reward customers with the most business there. The plan, and an advertising campaign to promote it, was slammed by local media and Danske in June fired its head of communications, Eva Hald. “
Why Lawrence Summers Withdrew from Fed Chair Consideration : The New Yorker
“The news that Larry Summers has withdrawn his name from consideration to be the next chairman of the Federal Reserve shouldn’t have come as a surprise. It’s been clear for months that nominating him to replace Ben Bernanke would cause the White House a lot of political trouble with some key elements of its base, especially women’s groups and economic progressives. For that very reason, I suggested back in July that the former Treasury Secretary’s chances were fast diminishing. “
With Summers, the Left Takes a Scalp – Bloomberg
“Summers had the support of not just Obama but also his coterie of economic advisers — Jason Furman, Tim Geithner, Jack Lew, Gene Sperling — who grew close to one another and to Summers during the Bill Clinton administration. If Summers had the inside track, however, an odd mix of supporters boosted Yellen: economists outside the White House, the press and a band of Summers-hating progressives.
The last group dealt the deathblow this week. To them, Summers wasn’t one of the most accomplished economists of his generation (as he surely is) but a mistaken deregulator and an incorrigible misogynist. However unfair and overstated, the case against Summers swayed Democratic senators on the banking committee, which would have had to give an initial nod to the nomination before it could go to the Senate floor.”
Why secure systems require random numbers | CloudFlare Blog
Government must declassify court opinions on phone surveillance after ACLU legal victory | The Verge
Gov’t standards agency “strongly” discourages use of NSA-influenced algorithm | Ars Technica
Behind Microsoft Deal, the Specter of a Nokia Android Phone – NYTimes.com
Nokia was working on Android-powered Lumia phones ahead of Microsoft deal — Tech News and Analysis
FBI admits what we all suspected: It compromised Freedom Hosting’s Tor servers | Ars Technica
The Government Wants To Define Who Qualifies As A Journalist | TechCrunch
““Once we reach the point at which we even allow Congress to set parameters for who should, and who should not be considered a journalist, we’ve gone too far,” wrote Techdirt’s Mike Masnick. “Because we know that setting that precedent will lead to further encroachments down the road. “
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