LIBOR

FOMC Minutes Preview: Beware The Hawkish Jolt

Today’s release of September’s FOMC minutes comes at a bad time for fragile markets and will intensify risk-aversion, according to Bloomberg's Mark Cudmore. Based on the rhetoric from Fed officials in the days following the Sept. 21 decision, the minutes will emphasize that the committee are keen to raise rates, and that all meetings are live -– including November.

Deutsche Bank Stock Slides As Short-Term Funding Cost Rises

As the powers-that-be play whack-a-mole with various systemic risk indicators, desperately tamping down contagion concerns, amid no progress in strengthening the world's most systemically dangerous bank; we warned two weeks ago of yet another canary in the coalmine of Deutsche Bank's demise (that no one was looking at). This week, that canary... died.

MidEast Massacre As Saudi Bank Stocks Crash To Crisis Lows

It's probably nothing but... Saudi banking stocks have been halved in the last year and crashed to their lowest level since the March 2009 lows. Middle East stock markets began the week with a big downturn as China comes back from its Golden Week holiday...

No Need For Yield Curve Inversion (There Is Already Much Worse Indicated)

The bond market selloff of the past month or so, which has apparently fizzled just as Alan Greenspan was assuring the world it was only getting started (once more preserving for posterity how little he knows about bonds, interest rates, and money, as if knowing anything about any of those would be useful to a central banker). There is no bond market riddle. As each curve gets squashed by righteous pessimism, they together indicate nothing good about the near-term future.

Raoul Pal: Business Cycle Tinder For A Global Banking System Fire

"...after every single two-term presidential election (i.e. when the incumbent changes) and there is a 100% track record of a recession within the next 12 months. It either starts just beforehand or starts afterward, but within 12 months there is a 100% chance of a recession... Even if they do raise rates, the yield curve will flatten like crazy... I think the Fed is almost an irrelevance at this point."

Small Business Survey Trips Economic Alarms

The problem for the Fed is that once again the window for a “rate hike” has likely closed. Economic uncertainty, deflationary threats, and market volatility will keep them boxed in for now. Unfortunately, the recent spike in LIBOR has likely already done a bigger job of tightening monetary policy than the Fed actually intended to do. This could cause problems in the not too distant future.

Wells Fargo CEO Throws Employees Under The Bus: "There Was No Incentive To Do Bad Things"

There was one question everyone wanted answered in John Stumpf's interview with the WSJ today: who does the buck stop with at Wells Fargo? Alas it remained unanswered - Stumpf wouldn’t comment on who was ultimately responsible for the practices and sales-driven culture that led employees to open as many as two million accounts without customers’ knowledge. Stumpf said that at the bank, "There was no incentive to do bad things."