2012/08/04

Címkék: napi

2012.08.04. 01:17

Megy a largecap:

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Leginkább szeretett papírok:

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On August 1, 2012, starting at market open (9:30 EDT), our monitoring software alarms went off on hundreds of symbols. Looking closer at the data, we found many stocks had extremely high trade rates: several stocks sustained more than 100 trades per second.

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Dole Foods (DOLE) shares morning spike due to an algo glitch

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But we know the "shorter part of the curve" isn't the problem. Both Italy and Spain have the ability to roll short-term paper. The issue for these nations is being shut out of the long-term markets and having to constantly auction bills, risking market disruptions. We all know what happens when firms rely on short-term funding when markets lose confidence (Lehman).

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New single family homes for sale in the US (thousands of units)

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"We think that Italy, as opposed to Argentina in 2001 and Spain today, would survive a euro exit without big problems…If Italy, however, does not leave the euro zone, both Italy and Germany run the risk of long-lasting balance sheet recession, in which both consumers and firms try to reduce debt and consume less, Germans in the fear of future German liabilities via the ESM, Italians in response to more and more austerity measures. Hence an Italian Euro exit would really help the euro zone."

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We learned a hugely important lesson from the Depression—that central banks could influence the economy and prevent demand-side macroeconomic disasters. But we took a wrong turn in thinking that the way they did this was by moderating inflation. It was as if we discovered a magical sword in the woods and then went about confronting enemies by whacking them with the sheath. We can move past this intellectual limitation. Monetary policy can influence demand, plain and simple.

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Olvasnivaló:

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