CRA

Frontrunning: October 9

  • Thaler, Famed for ‘Nudge’ Theory, Wins Nobel Prize in Economics  (BBG)
  • Republicans Worry About Keeping Trump’s Middle-Class Tax Promise (BBG)
  • Catalan leader under pressure to drop independence (Reuters)
  • Spain Warns Catalonia Independence Bid Risks Economic Meltdown (BBG)
  • U.S. Asks Allies to Cut Off North Korea (WSJ)

Moodys Slashes Ratings On 6 Canadian Banks, Fears Asset-Quality Deterioration, Soaring Household Debt

Amid Poloz-described "unsustainable prices" in various cities, and just days after the collapse of Canadian mortgage lender Home Capital Group and our discussion of the dire state of Canadian savers (and their record household debt), Moodys has cut the rating son six of Canada's largest banks because of "ongoing concerns that expanding levels of private-sector debt could weaken asset quality in the future."

McCain Leads Senate Mutiny As Three Republicans Join Dems To Reject Obama Drilling Rule Repeal

In a mini "mutiny" inside the Senate, moments ago three republicans joined with Senate Democrats to reject overturning an Obama administration rule limiting methane emissions from oil and natural gas drilling, also known as H.J. Res. 36. Only 49 senators voted to move forward with debate on legislation to undo the Bureau of Land Management rule, short of the 51 majority needed to advance the measu

The World's Worst Market-Timer

Whatever you do, make sure you keep in mind that the world’s worst market timer (the government) just cried “Uncle.” The proper trade is to assume they will make a mess. A big one.

Rand Tumbles After S&P Downgrades South Africa To Junk: Full Text

While CDS markets had largely priced in a downgrade (with levels approaching those of Brazl), FX markets seemed surprised when moments ago S&P downgraded South Africa to junk, cutting it from BBB- to BB+, in the aftermath of last week's sacking of finance minister Gordhan by president Zuma.

CRA: The "Regulatory Game Changer" That Could Wipe Out 8 Years Of Obama Regs In An Hour

"The entire point of the CRA was to help legislators rein in administrations that ignored statutes and the will of Congress. Few White House occupants ever showed more contempt for the law and lawmakers than Mr. Obama. It’d be a fitting and just end to Mr. Obama’s abuse of authority—and one of the better investments of time this Congress could ever make."

Canada Moves To Burst Housing Bubble, Closes Foreign-Buyer Loophole

In a move which many Canadians, especially those who have been persistently priced out of the housing market, welcomed with open arms, overnight Finance Minister Bill Morneau unveiled new measures aimed at slowing the flood of foreign money pouring into overheated housing markets like Vancouver and Toronto, a move which some dubbed an unprecedented federal intervention in the sector.

S&P Downgrades Turkey To BB, Outlook Negative; Lira Tumbles To New All Time Low

"Following the attempted coup on July 15, Turkey's political landscape has fragmented further. We believe this will undermine Turkey's investment environment, growth, and capital inflows into its externally leveraged economy. In the aftermath of the failed coup, we believe that the risks to Turkey's ability to roll over its external debt have increased."