The potential for a big market-moving story was in the works but the usually aggressive, boisterous Jim Cramer, in his interview with Treasury Secretary Timothy Geithner, resembled a tea party at an American Girl store. It seems that when Cramer fears being audited he goes quiet. The questions about Europe were milquetoast, leading to ridiculous answers–”I am sure Europe will be there in three years.” It proved to be worthless and provided little clarification on the issues of “THE TWIST” and how the U.S. was going to act in concert with the Europeans to help resolve the effects of the severe credit crisis that is impinging global financial institutions and certainly European economic growth.
Posts Tagged ‘RMBS’
Many times NOTES FROM UNDERGROUND warned that Chancellor Merkel had made a grave error by failing to push for Axel Weber to assume the Presidency of the ECB after Jean-Claude Trichet. I argued that the German populace would be a more willing participant in an enhanced bailout facility if a strong anti-inflationist from Germany was at the helm of the mechanism of financial bailouts for the PIIGS. It seemed that President Sarkozy had “bested” Merkel and the German Chancellor was forced to abandon Weber and agree to a compromise, ECB President Mario Draghi. Friday’s announcement by Juergen Stark that he was resigning his position on the ECB Executive Board and Governing Council gave the markets a scare and led to a large selloff in the EURO and global equity markets.
The August 9 FOMC minutes from were released today and there was a great deal of discussion about the issue of leaving rates at the present level for the next two years. It seems that one of the dissenters opposed the measure for he didn’t want the FED to be locked in to a decision and thought the measure should be subject to newly released data. There was much discussion about European banks and the efforts by the ECB to calm the storm and prevent a bank run. The FED did acknowledge that the biggest drag on U.S. growth was the “efforts to rebuild balance sheets and caution on the part of households facing an uncertain economic environment.”