Jun 262015

Trade agreements and the fate of the Export-Import Bank have been the focus for lawmakers of late, though other regulators and policymakers have been relatively quiet. The financial markets continue to focus on the outlook of the Greek budget talks with the EU and IMF. We do, however, continue to see stories concerning a potential bubble and liquidity crisis in the bond market.

A Liquidity Time Bomb in the Fixed Income Market

CNBC VIDEO: Air leaking out of fixed income market

Tarullo Sees No Convincing Explanation for Liquidity Changes

Gross’s Pimco Exit Shows Fund Risk Not Systemic, IOSCO Head Says

Global Regulators Back Off Shadow Banking Rules

Moody’s proposes new CCP ratings




Jun 192015
Bill Longbrake

Bill Longbrake

After the shocking -0.7 percent GDP growth in the first quarter, recent data reports are painting a better picture. So, the economy is not about to go into a tailspin as some worried about a month ago. But neither is it poised to accelerate as most forecasters expected prior to the start of the year. In this month’s letter Bill Longbrake explains why economic growth is likely to continue to be low and disappointing for many years to come, primarily because of a lack of private and public investment which will result in historically low productivity gains.

Read this month’s letter.

Jun 122015

As temperatures rise here in the DC metro area over the last couple weeks, news flow on the policy front has slowly dropped. The Dodd-Frank act turns five next month prompting a series of op-eds and statements on how to remedy the overly complicated law (Bloomberg provides a nice summary here of the various positions on this matter) and where the next financial crisis will occur.

The Greek bailout talks with the IMF, which broke down earlier in the week, continue to dominate the headlines in financial markets, along with speculation on when the Fed will begin hiking interest rates.

WSJ Op-ed: How the next financial crisis will happen

Happy birthday Dodd-Frank. Now grow up.

Volker sees peril hidden in state budgets

G-7 Leaders Stick to Deadline for FSB Too-Big-to-Fail Fix

Goldman revs up in high speed trading market it sought to reform

Merkel Calls for Return to Negotiating Table in Greek Bailout Talks

Robust US jobs report boost chances of September Fed rate hike

May 292015

With Memorial Day and graduation over, summer is officially here. The CFP had a very busy May hosting three different events. On May 8th, the CFP and Dingman Center for Entrepreneurship hosted an event on the JOBS Act and how to protect the crowd in crowdfunding. The SEC had recently provided some clarification on the rules surrounding the JOBS Act, but two states are now suing the agency claiming the rules wrongfully scale back their powers to police the deals.

Bloomberg also reported on the boom in shadow bank lending, a topic covered that the CFP’s conference held in conjunction with The Clearing House on May 11th.   The presentations and research discussed at all three events can be found on the CFP’s website.

Risky Loans Shunned by Banks Are Booming in Wall Street’s Shadow

Two States Sue SEC Over JOBS Act Rules

Fidelity Berates FSB’s Carney on Too-Big-to-Fail Fund Fix

Wall Street Using Power of Dodd-Frank Against Itself

May 262015
Bill Longbrake

Bill Longbrake

First quarter U.S. real GDP growth came in at a paltry 0.2 percent and updated economic activity reports promise to push growth well down into negative territory. Where is the much expected benefit of lower oil prices? When the data don’t fit expectations excuses proliferate. But, a close examination cannot explain away all of the unexpected weakness. In this month’s letter, Bill Longbrake discusses how misguided monetary and fiscal policies may be undermining economic growth and how global monetary policies may be fostering yet another bubble.

Read this month’s letter.