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STOCK MARKET WATCH -- Friday, 8 June 2012
[font size=3]STOCK MARKET WATCH, Friday, 8 June 2012[font color=black][/font]
SMW for 7 June 2012
AT THE CLOSING BELL ON 7 June 2012
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Dow Jones 12,460.96 +46.17 (0.37%)
[font color=red]S&P 500 1,314.99 -0.14 (-0.01%)
Nasdaq 2,831.02 -13.70 (-0.48%)
[font color=black]10 Year 1.64% 0.00 (0.00%)
[font color=red]30 Year 2.74% +0.01 (0.37%) [font color=black]
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[font size=2]Market Conditions During Trading Hours[/font]
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[font size=2]Euro, Yen, Loonie, Silver and Gold[center]
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[font color=black][font size=2]Handy Links - Market Data and News:[/font][/font]
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Economic Calendar
Marketwatch Data
Bloomberg Economic News
Yahoo Finance
Google Finance
Bank Tracker
Credit Union Tracker
Daily Job Cuts
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[font color=black][font size=2]Handy Links - Economic Blogs:[/font][/font]
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The Big Picture
Financial Sense
Calculated Risk
Naked Capitalism
Credit Writedowns
Brad DeLong
Bonddad
Atrios
goldmansachs666
The Stand-Up Economist
The Automatic Earth
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[font color=black][font size=2]Handy Links - Government Issues:[/font][/font]
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LegitGov
Open Government
Earmark Database
USA spending.gov
[/center][font color=black][font size=2]Handy Links - Videos:[/font][/font]
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Charlie Rose talks with Roubini
Charlie Rose talks with Krugman
William Black: This Economic Disaster
Bill Moyers with Kevin Drum and David Corn
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[div]
[font color=red]Financial Sector Officials Convicted since 1/20/09 = [/font][font color=red]12[/font]
2/2/12 David Higgs and Salmaan Siddiqui, Credit Suisse, plead guilty to conspiracy involving valuation of MBS
3/6/12 Allen Stanford, former Caribbean billionaire and general schmuck, convicted on 13 of 14 counts in $2.2B Ponzi scheme, faces 20+ years in prison
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[font size=3][font color=red]This thread contains opinions and observations. Individuals may post their experiences, inferences and opinions on this thread. However, it should not be construed as advice. It is unethical (and probably illegal) for financial recommendations to be given here.[/font][/font][/font color=red][font color=black]
69 replies
= new reply since forum marked as read
= new reply since forum marked as read
http://soberlook.com/2012/06/us-banks-moving-away-from-wholesale.html
Since the financial crisis, US banks have been rapidly reducing their reliance on wholesale funding. Large time deposits (CDs) went from 21% of the total bank liabilities prior to Lehman to around 13% today (chart below).
Banks are not marketing these accounts as aggressively as the used to (not offering very attractive rates on CDs as they did in the past) and there is also less customer demand. People are uneasy about locking up their money for six months to earn less than a quarter of a percent. And not many customers want to lock their money up for a longer period. Plus those who have more that $250K on deposit need to worry about bank credit risk on a CD that is locked up for a longer period.
http://1.bp.blogspot.com/-wNinwJp9bJE/T806Ba09ItI/AAAAAAAAFs8/aw2fJJznL3I/s1600/6month+CD+rate.png
In addition, banks are reducing their reliance on other "non-deposit" funding - such as borrowing from other banks, commercial paper issuance, etc. The chart below shows the total percentage of bank liabilities that would be considered wholesale funding.
http://2.bp.blogspot.com/-20t-BqUSsbk/T809Qz7yE2I/AAAAAAAAFts/g5u6PZ5oAzA/s1600/Large+time+deposits+Plus+Borrowings.png
The problem with these sources of funding is that they can quickly disappear, as was the case during the 2008/2009 period. Having been burned by not picking up on such bank risks prior to the crisis, rating agencies became aggressive in downgrading banks who have too much reliance on wholesale funding...
Since the financial crisis, US banks have been rapidly reducing their reliance on wholesale funding. Large time deposits (CDs) went from 21% of the total bank liabilities prior to Lehman to around 13% today (chart below).
Banks are not marketing these accounts as aggressively as the used to (not offering very attractive rates on CDs as they did in the past) and there is also less customer demand. People are uneasy about locking up their money for six months to earn less than a quarter of a percent. And not many customers want to lock their money up for a longer period. Plus those who have more that $250K on deposit need to worry about bank credit risk on a CD that is locked up for a longer period.
http://1.bp.blogspot.com/-wNinwJp9bJE/T806Ba09ItI/AAAAAAAAFs8/aw2fJJznL3I/s1600/6month+CD+rate.png
In addition, banks are reducing their reliance on other "non-deposit" funding - such as borrowing from other banks, commercial paper issuance, etc. The chart below shows the total percentage of bank liabilities that would be considered wholesale funding.
http://2.bp.blogspot.com/-20t-BqUSsbk/T809Qz7yE2I/AAAAAAAAFts/g5u6PZ5oAzA/s1600/Large+time+deposits+Plus+Borrowings.png
The problem with these sources of funding is that they can quickly disappear, as was the case during the 2008/2009 period. Having been burned by not picking up on such bank risks prior to the crisis, rating agencies became aggressive in downgrading banks who have too much reliance on wholesale funding...
Which means it took 35 minutes to get this machine up and running properly (or at least well enough to say "Bon jour!"
http://www.economist.com/node/21556577
The world economy is in grave danger. A lot depends on one woman...“TO THE lifeboats!” That is the stark message bond markets are sending about the global economy. Investors are rushing to buy sovereign bonds in America, Germany and a dwindling number of other “safe” economies. When people are prepared to pay the German government for the privilege of holding its two-year paper, and are willing to lend America’s government funds for a decade for a nominal yield of less than 1.5%, they either expect years of stagnation and deflation or are terrified of imminent disaster. Whichever it is, something is very wrong with the world economy.
That something is a combination of faltering growth and a rising risk of financial catastrophe. Economies are weakening across the globe. The recessions in the euro zone’s periphery are deepening. Three consecutive months of feeble jobs figures suggest America’s recovery may be in trouble (see article). And the biggest emerging markets seem to have hit a wall. Brazil’s GDP is growing more slowly than Japan’s. India is a mess (see article). Even China’s slowdown is intensifying. A global recovery that falters so soon after the previous recession points towards widespread Japan-style stagnation.
But that looks like a good outcome when set beside the growing danger of a fracturing of the euro. The European Union, the world’s biggest economic area, could plunge into a spiral of bank busts, defaults and depression—a financial calamity to dwarf the mayhem unleashed by the bankruptcy of Lehman Brothers in 2008. The possibility of a Greek exit from the euro after its election on June 17th, the deterioration of Spain’s banking sector and the rapid disintegration of Europe’s cross-border capital flows have all increased this danger (see article). And this time it will be harder to counter. In 2008 central bankers and politicians worked together to prevent a depression. Today the politicians are all squabbling. And even though the technocrats at the central banks could (and should) do more, they have less ammunition at their disposal.
Made in Athens, made worse in Berlin
In one way it seems unfair to pick on Mrs Merkel. Politicians everywhere are failing to act—from Delhi, where reform has stalled, to Washington, where partisan paralysis threatens a lethal combination of tax increases and spending cuts at the end of the year. Within Europe, as Germans never cease to point out, investors are not worried about Mrs Merkel’s prudent government, whose predecessor restructured the economy painfully ten years ago; the problem is a loss of confidence in less well-run, unreformed countries. But do not get too sympathetic. To begin with, past virtue counts for little at the moment: if the euro collapses, then Germany will suffer hugely. The downgrading of some of its banks this week was a portent of that. Moreover, the undoubted mistakes in Greece, Ireland, Portugal, Italy, Spain and the other debtor countries have been compounded over the past three years by errors in Europe’s creditor countries. The overwhelming focus on austerity; the succession of half-baked rescue plans; the refusal to lay out a clear path for the fiscal and banking integration that is needed for the single currency to survive: these too are reasons why the euro is so close to catastrophe. And since Germany has largely determined this response, most of the blame belongs in Berlin...
The world economy is in grave danger. A lot depends on one woman...“TO THE lifeboats!” That is the stark message bond markets are sending about the global economy. Investors are rushing to buy sovereign bonds in America, Germany and a dwindling number of other “safe” economies. When people are prepared to pay the German government for the privilege of holding its two-year paper, and are willing to lend America’s government funds for a decade for a nominal yield of less than 1.5%, they either expect years of stagnation and deflation or are terrified of imminent disaster. Whichever it is, something is very wrong with the world economy.
That something is a combination of faltering growth and a rising risk of financial catastrophe. Economies are weakening across the globe. The recessions in the euro zone’s periphery are deepening. Three consecutive months of feeble jobs figures suggest America’s recovery may be in trouble (see article). And the biggest emerging markets seem to have hit a wall. Brazil’s GDP is growing more slowly than Japan’s. India is a mess (see article). Even China’s slowdown is intensifying. A global recovery that falters so soon after the previous recession points towards widespread Japan-style stagnation.
But that looks like a good outcome when set beside the growing danger of a fracturing of the euro. The European Union, the world’s biggest economic area, could plunge into a spiral of bank busts, defaults and depression—a financial calamity to dwarf the mayhem unleashed by the bankruptcy of Lehman Brothers in 2008. The possibility of a Greek exit from the euro after its election on June 17th, the deterioration of Spain’s banking sector and the rapid disintegration of Europe’s cross-border capital flows have all increased this danger (see article). And this time it will be harder to counter. In 2008 central bankers and politicians worked together to prevent a depression. Today the politicians are all squabbling. And even though the technocrats at the central banks could (and should) do more, they have less ammunition at their disposal.
Made in Athens, made worse in Berlin
In one way it seems unfair to pick on Mrs Merkel. Politicians everywhere are failing to act—from Delhi, where reform has stalled, to Washington, where partisan paralysis threatens a lethal combination of tax increases and spending cuts at the end of the year. Within Europe, as Germans never cease to point out, investors are not worried about Mrs Merkel’s prudent government, whose predecessor restructured the economy painfully ten years ago; the problem is a loss of confidence in less well-run, unreformed countries. But do not get too sympathetic. To begin with, past virtue counts for little at the moment: if the euro collapses, then Germany will suffer hugely. The downgrading of some of its banks this week was a portent of that. Moreover, the undoubted mistakes in Greece, Ireland, Portugal, Italy, Spain and the other debtor countries have been compounded over the past three years by errors in Europe’s creditor countries. The overwhelming focus on austerity; the succession of half-baked rescue plans; the refusal to lay out a clear path for the fiscal and banking integration that is needed for the single currency to survive: these too are reasons why the euro is so close to catastrophe. And since Germany has largely determined this response, most of the blame belongs in Berlin...
http://www.presseurop.eu/en/content/article/2129121-under-iron-thumb-troika
?1339073642
When they talk about the “MoU” in Portugal they are not referring to their famous compatriot, the coach of Real Madrid. The MoU (“Memorandum of Understanding on specific economic policy conditionality”) is the final word over the economic lifeblood of this country of 10.6 million people, who when the calendar leafs over to April have a tendency towards radical changes.
In April 1974, the Carnation Revolution ushered in democracy. And in April 2011, following in the footsteps of Ireland and Greece, the Socialist government of Prime Minister Jose Socrates was forced to go to the European Union with a dramatic plea for help.
A month later, that help took the form of a bailout worth 78 billion euros – capital at an interest rate of about four percent, handed over in instalments and accompanied by a whole litany of deep and painful reforms. The fine print for sorting out the finances of Portugal, to let the country return to the markets by September 2013, lies in the hands of the troika made up of the International Monetary Fund, the European Commission and European Central Bank, whose representatives periodically descend on Lisbon to audit the books.
“We’ve gone from the scissors to the saw”
One of those check-ups came just this week. It’s the fourth in the year that the Portuguese have been living “under the troika.” This type of audit of the commitments that have been met is carried out over two weeks by a squad of young technicians with laptops looking for figures, deadlines and documents. Meanwhile, three senior officials are in charge of contacts at the political level: Abebe Selassie (IMF), Jürgen Kröger (European Commission) and Rasmus Rüffer (ECB).
?1339073642
When they talk about the “MoU” in Portugal they are not referring to their famous compatriot, the coach of Real Madrid. The MoU (“Memorandum of Understanding on specific economic policy conditionality”) is the final word over the economic lifeblood of this country of 10.6 million people, who when the calendar leafs over to April have a tendency towards radical changes.
In April 1974, the Carnation Revolution ushered in democracy. And in April 2011, following in the footsteps of Ireland and Greece, the Socialist government of Prime Minister Jose Socrates was forced to go to the European Union with a dramatic plea for help.
A month later, that help took the form of a bailout worth 78 billion euros – capital at an interest rate of about four percent, handed over in instalments and accompanied by a whole litany of deep and painful reforms. The fine print for sorting out the finances of Portugal, to let the country return to the markets by September 2013, lies in the hands of the troika made up of the International Monetary Fund, the European Commission and European Central Bank, whose representatives periodically descend on Lisbon to audit the books.
“We’ve gone from the scissors to the saw”
One of those check-ups came just this week. It’s the fourth in the year that the Portuguese have been living “under the troika.” This type of audit of the commitments that have been met is carried out over two weeks by a squad of young technicians with laptops looking for figures, deadlines and documents. Meanwhile, three senior officials are in charge of contacts at the political level: Abebe Selassie (IMF), Jürgen Kröger (European Commission) and Rasmus Rüffer (ECB).
Oh, no offense taken, snot.
once they changed it without warning and I couldn't find the stuff I needed to post the front page! Thought I was losin' my freakin' mind!
For all the horse lovers --
No Triple Crown this year as I'll Have Another has been scrubbed from the Belmont Stakes due to leg problems.
Good decision. While a Triple Crown winner might be "good" for the sport, it's suffered from too many tragedies and needs some kindness to the animals that make it all happen.
