mortgages

Permanent zero can work over the medium-term but the economy is dependent on employment growth and monetary policy doesn't drive that.

My last weekly said the hand-in-hand Fed activism and fiscal activism via Obama's mortgage proposal is bullish. Let me add a bit of colour here.

I was on CNBC yesterday ahead of Ben Bernanke's speech explaining the FOMC's recent decision to add an explicit inflation target to its decision to extend its rate easing/permanent zero policy. My conclusion: the Obama mortgage plan and…

Investors must still be worried about the fallout from the European meltdown. However, the situation in the US is looking much better than it did last week because of this aggressive policy response.

The following is the press release Moody's issued in putting the covered bonds of five Spanish banks on review for credit ratings downgrades.

Financial news links for 8 December 2011 including stories on Denmark and Danish bank capital, the European sovereign debt crisis and Spanish banks

News links for 3 December 2011

BofA Clash With Fannie Mae Escalates Over Loan Buyback Stance - Bloomberg Bank of America Corp. (BAC) told Fannie Mae it refuses to cooperate with the U.S. mortgage firm's new stance on loan buybacks, setting the lender up for a…

2011/11/16 00:43 - Japan's Hidden Jobless Hits 4.69mn, Worse Than After Lehman Shock The number of Japanese that want to work but are not actively seeking employment has surpassed levels from after the global financial crisis…

Pressure is mounting on Spain. The 10-year yield today is essentially back to where it was when the ECB broadened its sovereign bond purchase scheme to include Spanish and Italian bonds. On Oct 27, the 10-year yield was near 5.33%. Today it…