Tag Archives: Obama Administration

Yuan is the Word

By Andrew Busch | Published: September 13, 2010

http://www.cnbc.com/id/39150215

The Chinese currency has had a big move since the beginning of September. The renminbi or yuan has appreciated over 550 points moving from 6.8175 down to 6.7618. This is a larger move than what happened in June when the Chinese pledged to allow the currency to reflect economic fundamentals. Why is this occurring?

Some of the move can be explained by the recent spate of positive Chinese economic data. In August, the global equity markets were unsettled by the unexpected drop in Chinese imports and the concern was that Chinese growth was slowing. In September, these fears have … …READ MORE

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No Top For Rates or Agency Debt

By Andrew Busch | Published: December 29, 2009

Yesterday, I tweeted about the Xmas Eve decision by the Obama administration on FNM and FRE. The cap to lending to these two mortgage giants was lifted and could cover unlimited losses over the next three years. The US Treasury receives preferred stock in both companies paying 10% dividends. Already, the US has paid out $111 billion: $60 billion to Fannie and $51 billion to Freddie. The previous cap was $400 billion. Treasury said that this was “necessary for preserving the continued strength and stability of the mortgage market.”

Why was this done at this time? The driver was a … …READ MORE

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Back In the Saddle

By Andrew Busch | Published: June 14, 2009

I’m back and apologize for the absence……

There’s a lot O’ Stuff going on in the world this weekend, but a paucity of decent articles….

#1 The NYT has an excellent artcile on Medicare in the Economic View section.  Since there has been a ton of press and Obama administration push to spend more money upfront to “fix” healthcare, it’s good for someone to encapsulate what the problem is: 

“It’s also hard to convince the American public that the solution to insufficient health insurance is to tax health insurance. And such a one-time tax increase would postpone but not eliminate the … …READ MORE

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