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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: YanivBA who wrote (54468)	8/8/2006 2:07:10 PM
From: mishedlo	Read Replies (2) \| Respond to of 116555

U.S. HAS ITS SECOND-HOTTEST JULY ON RECORD; DROUGHT CONDITIONS WORSEN noaanews.noaa.gov

To: YanivBA who wrote (54468)	8/8/2006 3:19:40 PM
From: mishedlo	Respond to of 116555

FOMC statement Release Date: August 8, 2006 For immediate release The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent. Economic growth has moderated from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices. Readings on core inflation have been elevated in recent months, and the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures. However, inflation pressures seem likely to moderate over time, reflecting contained inflation expectations and the cumulative effects of monetary policy actions and other factors restraining aggregate demand. Nonetheless, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information. Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Jack Guynn; Donald L. Kohn; Randall S. Kroszner; Sandra Pianalto; Kevin M. Warsh; and Janet L. Yellen. Voting against was Jeffrey M. Lacker, who preferred an increase of 25 basis points in the federal funds rate target at this meeting. federalreserve.gov

To: YanivBA who wrote (54468)	8/9/2006 10:29:12 AM
From: YanivBA	Read Replies (2) \| Respond to of 116555

When Delphi Corp. filed for bankruptcy on Oct. 8, there were $20 billion of credit default swaps related to its $2 billion of bonds. The imbalance drove up prices of the bonds and forced banks to hold an auction to determine a price to settle the derivatives. It took Moody's Investors Service four months to figure out the impact of the Delphi default on the market for credit default swaps and securities that contain the derivatives. quote.bloomberg.com YanivBA.