Credit Writedowns

The argument that unemployment happens when wages fail to adjust sufficiently to changed market dynamics is a well-aired one. But explanations of "sticky wages" tend to focus on structural rigidities such as employment protection…

News links for 14 Jan 2014

Bubbles have become a major focus of discussion in today’s financial markets. But very few people actually define what they mean when describing this financial phenomenon.

By Win Thin and Ilan Solot Despite the growing tensions in Thailand and the risk of military involvement, equity indices stared off the week higher and THB stable. There is some optimism that a possible delay to the February 2 vote could…

By Marc Chandler The simmering tension in the South China Sea may intensify in the coming weeks, and although this is no immediate market reaction, there could be going forward. Last week Japan indicate it will formally register 280…

News links for 13 Jan 2014

When I last wrote you I was talking about 2013 as being akin to the mid-cycle tightening year of 1994. In this view, we are well into a business cycle but it is far from over because of cyclical agents could spur the cycle on. But what…

Loan growth in the US continues to slow. Credit expansion is certainly not nearly as bad as what has transpired in the Eurozone, but the slowing trend is unmistakable. The current rate of loan growth is now significantly below the nominal…

- At the risk of oversimplifying, there seems to be a single overriding driver of the global capital markets in the coming days - The US real sector data, like retail sales, industrial production and housing starts, risk being on the soft…

12 Jan 2014