Here’s what I saw through my financial binoculars as I looked at the borrowing landscape over the last week.
WSJ reported Bill Gross, head of PIMCO, is betting against the massive firepower and determination of the Fed by selling a big chunk of his treasury holdings. We’ll see who has greater influence on the market.
WSJ.com and others reported Sheila Bair will step down as head of the FDIC. She’s been a rare bipartisan leader who had a steady hand on the financial wheel during a difficult time.
The Calculate Risk blog had an excellent summary of the deep depression in home prices. Nearly 30% of all single family mortgage borrowers in the U.S. are underwater. It’s going to be a long, long slog to normal times.
WSJ.com and others reported that the U.S. debt ceiling has become a game of political chicken with Dem’s shouting the sky is falling and conservatives demanding substantial budget cuts. A debt default will have a big impact on interest rates. Some have suggested Treasury department asset sales instead of new borrowing. A novel idea.
WSJ.com reported Atlanta’s Fed president Lockhart and others are convinced that core inflation is subdud and inflation expectations are anchored. Both are a ingredients for the hot dish of low interest rates.
Read of these and other events of last week that changed the contour of the borrowing landscape on my Twitter feed. Catch you next week.