First, Summers steps away; Second, Geithner politely declines; and now - just as his odds of becoming the next Fed Head begin to rise, Donald Kohn drops the following headline bomb-shells at a Brookings' event this morning
KOHN: BAIL-IN NEEDED TO PROTECT FINANCIAL SYSTEM FROM TOO BIG TO FAIL FIRMS
KOHN: VERY EASY MONETARY POLICY CAN CREATE DANGEROUS RISKS
Kohn: Problems can arise when one policy [monetary or financial regulation] is leaning so hard in one direction
That should be enough to effectively remove himself from the running... It seems we are back to the lowest common denominator Fed-head - so much for American exceptionalism again.
UPDATE 2: French draft UN security council resolution would give Syria 15 days to make complete declaration of entire chemical arms program
UPDATE 1: NASDAQ Futures are fading the Obama "Pause" spike after AAPL is not announcing a China Mobile deal
Starting just 1 minute late, the President begab by unapologetically conjuring images of WWI and WWII and stuck to the line that "we know" Assad was responsible for killing his own people with Sarin. Then moved to fear-mongery over what Iran might do, adding that he was very much for strikes. But, in giving Congress the hot potato he knew decision would be difficult. The US military does not do 'pin pricks' and a "targeted" strike will send a message to Assad. While recognizing the need for a diplomatic solution, Obama made it clear that those efforts would follow a military strike. But then, after all the angry banter, he then backed down and said, will work for peaceful solution by putting the strike on hold and will bring a resolution to UN. Ending on a more aggressive note, he warned Republican and Democrat lawmakers to rethink their opposition to the strikes should they be needed.
As the US Congress considers whether to authorize American military intervention in Syria, its members should bear in mind a basic truth: While Syrian President Bashar Al-Assad has repeatedly used extreme violence to retain power, the United States – and other governments in the Middle East and Europe – share responsibility for turning Syria into a killing field. The US government’s misguided move from potential mediator and problem solver to active backer of the Syrian insurrection was, predictably, a terrible mistake. It is time for the US to help stop the killing in Syria. That means abandoning the fantasy that it can or should determine who rules in the Middle East.
The conclusions I have come to are somewhat threatening in the short term, but even more disconcerting in the intermediate term, as the developing image is exposing a crystal clear picture of the ominous resource wars looming directly ahead. Equally dismaying, are the "honorable distinguished gentlemen" presiding over this Middle East mayhem, which are showing themselves to be either grossly incompetent cretins or dangerous duplicitous megalomaniacs
The Hippocratic Oath is one of the most widely known Greek medical texts. It requires a new physician to swear upon a number of healing gods that he will uphold a set of professional ethical standards. The premise of the original Oath, which supposedly started out like this is clear: First, do no harm. Over the last several years, a new oath has appeared in the world of finance as global investment banks have been hauled in front of Senate committees, Congressional panels, various regulatory bodies, and (what always used to be the harshest of judges) the public: the Hypocritic Oath. It begins thus: First, admit no wrong.
If there is one day when the pent up tensions on both sides resulting from the Egyptian coup over a month ago may boil over and lead to an all out civil war (still unclear how John Kerry would "define" that one) today may be that day, as Cairo is braced for what may be the most violent confrontations yet with supporters of the deposed president Mursi calling for “day of rage” protests after Friday prayers, and the Egyptian polic (now using live ammo) and army set to crush any such "illegal" protests. Since millions are set to hit the streets, there is no way this will have a peaceful outcome.
- This won't end well: Islamists call Cairo protest march as Egypt death toll mounts (Reuters)
- JPMorgan Said to Expect Multiple Fines for Whale Loss (BBG)
- Ex-bosses at JPMorgan unlikely to face charges in 'Whale' scandal (Reuters)
- China could target oil firms, telecoms, banks in price probes (Reuters)
- For once, it's not the weather's fault: U.K. Retail Sales Increase More Than Forecast on Heatwave (BBG)
- Japanese visits to shrine on war anniversary anger China (Reuters)
- India Fighting Worst Crisis Since ’91 Seeks to Buoy Rupee (BBG)
- Japan Signals Corporate Tax Cut a Long Shot as Deflation Eases (Reuters)
- Indonesia Tackles Graft in Energy Sector (Reuters)
- Merkel Touts Strength of German Economy (WSJ)
- and... British stuntman who parachuted into London Olympics opening ceremony as James Bond dies in fall (AP)
With all of the problems afflicting the world economy nowadays, inflation seems to be the least of our worries. In addressing the post-2008 economic malaise, which stems from over-indebtedness, policymakers are correct to focus on the threat of debt deflation, which can lead to depression. But dismissing inflation as “yesterday’s problem” could undermine central banks’ efforts to address today’s most pressing issues – and, ultimately, facilitate inflation’s resurgence. Understanding how the Great Inflation from the late 1960’s to the early 1980’s was tamed offers important lessons for addressing far-reaching economic problems, however different ours may be, and provides insight into the dangers that may lie ahead.
Evans, who is one of twelve Federal Reserve Presidents, believes that the economic indicators “are actually really better” and this signals a new, more firmer indication from the Fed that tapering is going to happen.
NSA Spying Directly Harms Internet Companies, Silicon Valley, California … And the Entire U.S. EconomySubmitted by George Washington on 07/31/2013 13:47 -0400
Mass Surveillance Is “Killing Our Most Productive Golden Goose”
Lets face it, shysters exist....it's our job to ensure we stay well clear of them. Here are some RED FLAGS to look out for!
"Perhaps the success that central bankers had in preventing the collapse of the financial system after the crisis secured them the public's trust to go further into the deeper waters of quantitative easing. Could success at rescuing the banks have also mislead some central bankers into thinking they had the Midas touch? So a combination of public confidence, tinged with central-banker hubris could explain the foray into quantitative easing. Yet this too seems only a partial explanation. For few amongst the lay public were happy that the bankers were rescued, and many on Main Street did not understand why the financial system had to be saved when their own employers were laying off workers or closing down." - Raghuram Rajan
Investing in early stage large infrastructure projects is notoriously a poor investment for investors. Instead the better option is in buying distressed debt on infrastrucure for cents on the dollar.
Talk is cheap and action speaks volumes. We may be horribly wrong but we are taking action based on our knowledge. Its time people took responsibility for themselves and stopped bitching.
While it was not surprising that the BOE did nothing to change its rate or QE program, it was surprising (to some) that in the first official statement following the appointment of Goldman's Mark Carney as head of the Bank of England, the bank did mention that forward guidance and intermediate thresholds would likely be considered at the August assessment. Which, of course, is code for expect a major change in monetary policy. And now we also know the date, meaning that some time in August Goldman's latest central bank head will proceed doing what Goldman central bank heads do best: crush currencies in order to boost nominal, not real, returns and ensure another record Goldman bonus pool.