Salient to Investors: Nouriel Roubini at NYU said: There has been a global recovery in the last year with the US recovery and reduced tail risks of a eurozone breakup and a hard landing in China. The US economy recovery is very fragile, with barely 2% GDP growth expected in
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Buy short-term Treasuries and credit securities that will be bolstered by the Fed’s intent to keep benchmark lending rates at almost zero. These assets will soon be the nearly sole focus of central banks. Buy TIPS as a hedge against the risk
READ MORE... →Salient to Investors: David Zervos at Jefferies said: A Lawrence Summers Fed may give financial markets even stronger support in times of stress than Bernanke. Summers is no fool and loves the art of the bailout. Summers would be more hawkish than Bernanke. Summers played a role in bailing out
READ MORE... →Salient to Investors: Marco Oviedo at Barclays said teacher protests are a sign that President Nieto may struggle to push through his energy and tax-law plans without modification. Oviedo said education reform shows that it won’t be easy to pass other reforms that hurt certain political groups or interests. Opposition to Nieto’s pledges
READ MORE... →Salient to Investors: Joseph E. Gagnon at the Peterson Institute for Intl Economics writes: QE still is the right policy. QE bond purchases are not comparable to stimulus spending on roads and tax cuts, which adds to the national debt. QE is a swap of one asset, bank reserves, for
READ MORE... →Salient to Investors: Michael Cudzil at Pimco said: The Fed will taper because it looks at progress over a long-term period of time, rather than any one given month, and because there are doubts among some policy makers about how effective QE has been in boosting the economy amid concern
READ MORE... →Salient to Investors: Ian Lyngen at CRT Capital said a slightly better non-farm payrolls report would trigger tapering – it is just a question of size and composition. 65 percent of economists expect tapering in September. Stone & McCarthy Research Associates said the securities scheduled to be purchased by the Fed during September
READ MORE... →Salient to Investors: Caroline Baum writes: C. Fred Bergsten says Sweden combines a social welfare society with a free-market economy and a high degree of government efficiency: nearly two-thirds of Swedes confirm by phone that the tax form prepared for them by authorities is correct. cards use your Michael McDonald
READ MORE... →Salient to Investors: Mohamed El-Erian at Pimco said: Weakening emerging-market growth and spiraling currencies risk creating headwinds for a recovering US economy. Longer-term, we should care due to the feedback loop to the US. We will see a tightening of financial conditions to markets, with growth more challenged and the ability of
READ MORE... →Salient to Investors: Matthew Benjamin at Medley Global Advisors said there is a perception that there is a difference between Yellen and Summers” in their approach to monetary stimulus. Leo Grohowski at BNY Mellon Wealth Mgmt said the market was comfortable with a Yellen appointment and is now needing to grow comfortable with
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