Europe, cooperation and train wrecks

August 30, 2011

James Saft is a Reuters columnist. The opinions expressed are his own.

HUNTSVILLE, Ala., Aug 30 – In an unintended irony for a continent with a great public transport infrastructure Europe’s debt rescue plans are turning into a train wreck. Consider that as Greek two-year interest rates stood at 45 percent on Monday, officials and interests in the euro zone descended into an unseemly mix of squabbling over assets, denying the undeniable and disagreeing about first principles. Even as weak as recent U.S. economic data has been, these fractures, which imply heightened risk of a bank-centered market crisis, are surely the main source of the recent extreme financial volatility.

Jackson Hole and the Great Risk-off

August 26, 2011

James Saft is a Reuters columnist. The opinions expressed are his own.

HUNTSVILLE — The best reason to sell risk assets is perhaps that the best reason to buy them in are hopes for what one man will say on Friday in a mountain resort.

Libya gives world economy needed break

August 23, 2011

James Saft is a Reuters columnist. The opinions expressed are his own.

For Libyans the fall of Muammar Gaddafi comes about 40 years too late, but from the point of view of the global economy it is not a moment too soon.

As politics fails, will central banks step back

August 18, 2011
James Saft is a Reuters columnist. The opinions expressed are his own.

HUNTSVILLE, Ala,  – We’ve grown accustomed to central banks swooping to the rescue when events overtake governments’ ability to address economic and market fractures.

US medicine could be bitter for dollar

August 16, 2011

James Saft is a Reuters columnist. The opinions expressed are his own.

HUNTSVILLE, Ala – The U.S. economy is in trouble, and most of the ways it may get help will be bad for the dollar.

The coming U.S. profits drought

August 11, 2011

James Saft is a Reuters columnist. The opinions expressed are his own.

HUNTSVILLE, Ala. – It’s not just that the U.S. economy is ebbing; the stock market has finally woken up to the harsh impact that government austerity will have on corporate profits.

Nightmare is a sweet dream for bonds

August 9, 2011
James Saft is a Reuters columnist. The opinions expressed are his own.

HUNTSVILLE, Ala. – To understand why the U.S. lost its AAA rating yet its bonds rallied you need only consider that recent events are bad for growth but good for creditors.

Four bullish tales in search of dupes

August 2, 2011

James Saft is a Reuters columnist. The opinions expressed are his own.

HUNTSVILLE, Ala. — With a U.S. debt deal hopefully past, we can look forward to the ritual trotting out of explanations for why investors should be bullish despite a broken political system and a AAA rating on the edge.