September 3, 2007
Most Read Stories (3-Sep-2007 9:46:26)
Not only is it Monday morning (Beijing time), but it’s also a long holiday weekend so the activity on the Bloomberg is very light.
Here are the top five most read stories on the Bloomberg in the last day with selected excerpts (and my comments, if any, in italics).
As of 3-Sep-2007 at 9:46:26 (Beijing time):
- Feldstein Warns of U.S. Recession, Urges Fed Rate Cut
- Sydney Residents Urged to Vacate Amid APEC Security
- N.Z. Dollar Drops as Bernanke Deters Investors From Carry Trade
- U.S. Stocks Little Changed in Week After Bush Pledge
- Treasury Three-Month Bill Yields Fall Most Since 2001 on Credit
“Lowering interest rates may result in a ’stronger economy with higher inflation than the Fed desires,’ a situation that Feldstein described as the ‘lesser of two evils.’ ‘If that happens, the Fed would have to engineer a longer period of slow growth to bring the inflation rate back to the desired level.’”
The Fed can’t “engineer” anything … at best it can monkey and cross its fingers. Economics is not a science.
“Australian police also checked the security background of a group of eight 12-year-old Australian choristers who will perform during the summit.”
This level of paranoia would be funny if it weren’t so sad (and completely unnecessary).
“In carry trades, investors get funds in a country with low borrowing costs and invest in nations with higher interest rates, earning the spread between the borrowing and lending rate. The risk is that currency market moves erase those profits.”
“U.S. exchanges will be closed Sept. 3 for the Labor Day holiday.”
“The yield on the three-month Treasury bill fell 84 basis points, or 0.84 percentage point, to 4.11 percent in August … It was the biggest monthly drop since September 2001.”
The “fright” to quality, in a picture.
September 3rd, 2007 at 12:25 pm
Having the meeting in the middle of Sydney makes no sense at all. Recent G8 meetings have been at resort locations. They should have held it near Cairns or somewhere.