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Browsing Category
Monetary System
Policy makers everywhere willing to reflate if necessary
(News links for 11 Jul 2013) The totality of what we have seen over the past two or three days shows that policy makers in the US, Europe and China all are standing at the ready to support reflation if the varying triggers they have are…
Daily Commentary: The ECB’s move toward monetisation
The ECB's forward guidance last week was begun with unanimous support including the German contingent. I think this is a very significant development in the European sovereign debt crisis because it moves the ECB that much closer to full…
Banks benefiting from “taper” on both sides of the balance sheet
US equity markets are continuing to price in higher premiums for bank shares relative to the overall market. The increased steepness of the yield curve will mean higher net interest income, as banks borrow at historically low rates from…
Banks can benefit from steeping yield curve though headwinds remain
The treasury curve has steepened materially over the past few weeks, driven by Bernanke's seemingly hawkish statements. One group of companies that will benefit from this adjustment is the banking sector.
Full analysis: The Fed will not raise rates until at least mid-2015
The Federal Reserve's Open Market Committee met today. As expected, the Fed Funds rate stayed at zero percent. Most Fed watchers, however, wanted more clarity on the Fed's quantitative easing timetable, which the Fed laid out clearly. But…
Chart of the day: Does this violate key principles of money creation?
In spite of the divergence in the chart, the "loans create deposits" axiom still stands - deposits are still created through bank credit. Two key developments explain much of this divergence without violating these principles.
Europe’s banks must be recapitalized
Europe has been postponing the recapitalisation of its banking sector. This column argues that it has been doing so for far too long. Without such a recapitalisation, the danger is that economic stagnation will continue for a long period,…
FDIC: US banks reported a record $40.3 billion in accounting gains in Q1 2013
Editor's note: The following press release was issued by the FDIC last week regarding bank accounting gains in the quarter through 31 March.
How QE works and what this means for asset prices and credit
One of the most contentious topics in America is the impact of the Federal Reserve’s policy of “Quantitative Easing” – otherwise known as ‘QE’. The Federal Reserve has committed to spending $85 billion every month buying a wide range of…
Moody’s: U.S. banking system outlook changed to stable as economy improves
Moody's has changed its outlook on the U.S. banking system to stable from negative, reflecting continued improvement in the operating environment and reduced downside risks to the banks from a faltering economy, says Moody's Investors…