The Fed
George Lone Dissenter Again: Bullard Gets What He Wants – Real Time Economics – WSJ
Fed Sees Risk of Disinflation, Maintains Bond Buying Pace – Bloomberg
Could Geithner End Up the Next Fed Chairman? – Bloomberg
Who Is Roger Ferguson and Could He Be the Next Fed Chair? – Matthew O’Brien – The Atlantic
Who Is Don Kohn? – Real Time Economics – WSJ
Fed Gender Embarrassment Raises Pressure to Name Yellen – Bloomberg
The Sexist Attacks on Janet Yellen Have to Stop – Matthew O’Brien – The Atlantic
“In the Yellen camp, Rosenberg said in a note to clients Wednesday that she deserves the job because she “took on her colleagues over the housing bubble (the one that Greenspan and Bernanke never saw), plus she absolutely nailed the recession call in late 2007, a time when almost every economist on Wall Street was publishing about soft landings.
“She was just about the only one who saw the crisis coming. Imagine if the leadership at the Fed would have heeded her warnings instead of lining up at the Kool-aid stand. She deserves the head job just based on this alone, let alone her CV which, frankly, is much more applicable to the Fed Chairman role than that of Larry Summers, who has a grand total of zero experience in the realm of monetary policy decision-making. “”
Summers at Fed Prompts Questions From Concerned Senators – Bloomberg
“David Gergen, an adviser to Republican and Democratic presidents from Richard Nixon to Bill Clinton, said that to the best of his knowledge, the letter is “unprecedented.” He said he was taken aback by so many senators deciding to “make this a political question,” and added that the episode may complicate confirmation of either Yellen or Summers.
“Usually that advice is given in private,” said Gergen, a professor at Harvard University’s Kennedy School of Government. “It’s never pretty when a president faces tensions within his own party about an appointment and is caught in the middle.” “
Larry Summers Gets ‘Full-Throated Defense’ From Obama In Capitol Hill Meeting, Lawmaker Says
Obama defends Larry Summers against charges he is unfit to be Fed chairman – The Hill’s On The Money
“Obama cautioned the lawmakers “not to believe everything you read in The Huffington Post,” Sherman added.
“He gave a full-throated defense of Larry Summers and his record in helping to save the economy in the dark days of ’09,” Rep. Gerry Connolly (D-Va.) said. Obama, he added, “felt that Larry had been badly treated by some on the left and in the press.” “
Obama Blasts HuffPo For Larry Summers Coverage – Business Insider
Obama defends Summers on 2009 economic stimulus | Reuters
Brad DeLong : Why Does America’s Left View Larry Summers as a Right-Wing Hyena?
Why Obama should pick Summers to lead the Fed – FT.com
This is a Brad DeLong piece. He has becoming increasingly vocal about his support for Larry Summers.
Ezra Klein tries to make the case at WaPo
Brad DeLong : On Larry Summers…
This is probably the best case for Larry Summers I have seen thus far.
Europe
First fall in euro zone unemployment points to muted recovery | Reuters
BBC News – Eurozone unemployment total in slight fall
“The jobless total fell by 24,000 to 19.26 million, the first decrease in the jobless total since April 2011.
The figures add to recent hopes that the economic situation in the eurozone may be stabilising.
The jobless rate was 26.3% in Spain, and 26.9% in Greece, but only 4.6% in Austria and in Germany it was 5.4%.”
Europe’s factories grow, China’s stabilize | Reuters
Euro-Area Inflation Holds at 1.6%, Providing ECB Some Leeway – Bloomberg
Mario Draghi wants to publish ECB minutes – Telegraph
Company pensions in peril as shortfalls hit record
Ireland: 82% of households cut spending due to downturn – RTÉ News
Spain’s Rajoy says he was wrong to trust treasurer in party funding scandal | Reuters
Spanish prime minister Mariano Rajoy admits mistake over slush fund – FT.com
Train driver in Spanish death crash was on phone to rail operator – FT.com
Spain Weighs Home Demolitions as Wrecking Crews on Alert – Bloomberg
Think of this as malinvestment.
Italy Banks Bad Loans Underline Southern Europe Malaise – Bloomberg
““The headline index has now risen in six of the past seven months, highlighting a sustained slowdown in the pace of contraction in Greece’s manufacturing sector,” said Markit.
“One factor helping lift the headline PMI towards the all-important 50.0 threshold was a slower decline in output. July’s decrease was the least marked since,” said the analysts. “April 2011, and substantially slower than the pace of contraction seen at the start of the year.””
North America
Chris Christie and Rand Paul Escalate War of Words | TIME.com
U.S. jobless claims drop to 5-1/2 year low | Reuters
ADP Report: 200,000 Private-Sector Jobs Added in July – WSJ.com
Obama Said to Choose Raskin for Deputy Treasury Secretary – Bloomberg
California city becomes first to adopt eminent domain plan | South China Morning Post
I am almost always against eminent domain as a vehicle to solve problems. But, here it is.
Senators question U.S. energy market settlement with JPMorgan | Reuters
Morgan Stanley predicts buy-to-rent boom | HousingWire
“Over the past three years, investor activity has removed significant amounts of distressed supply from Southern California, Phoenix and Las Vegas,” the report states. “Consequently, select MSAs in Florida, the Midwest and the Northeast now constitute a greater proportion of the nation’s distressed properties, making them potentially more attractive to institutional buy-to-rent investors.”
Barrick Earnings: Gold Miner Posts $8.56 Billion Loss Amid Charges – WSJ.com
“Gold miner Barrick Gold Corp. booked $8.7 billion of impairment charges related to slumping metal prices in its latest quarter, resulting in an overall loss of almost the same size and leading it to slash its dividend.
Toronto-based Barrick, the world’s largest gold producer, had already warned it would take up to $6 billion of charges on some of its assets, in particular for its flagship Pascua Lama mine, but some analysts expected that amount to climb.
Barrick said it lost $8.56 billion, or $8.55 a share, in the second quarter, compared with a year-earlier profit of $787 million, or 79 cents a share. “
Elsewhere
Commodity supercycle in rude health despite shale – Telegraph
This analysis rings true. The fact that oil prices are still near $100 a barrel despite the weak macro background tells you that peak oil is still a force to be concerned about.
Was Montagu Norman a Nazi sympathiser? – Telegraph
Bank of England helped the Nazis to sell plundered gold – Telegraph
BBC News – ‘WWIII Queen’s speech’ script revealed
“The Queen was expected to urge Britons to pray and remain united and resolute in the event of the “madness” of nuclear war, papers from 1983 show.”
Henry Ford in his first car – a picture from the past | Art and design | theguardian.com