MUST READS
Banks, markets await European stress test results – AP
Financial overhaul completed, tax fight looms – McClatchy
SEC watchdog will probe Goldman settlement timing – Reuters
Key lieutenants ensured passage of financial regulation overhaul – WaPo
More homeowners get help outside of federal program – USA Today
Calif. county asks state for millions in bailout – SLO.com
CA city seeks resignations of high-paid officials – AP
Credit card issuers increase non-penalty fees – WaPo
ECB’s Trichet Calls for Fiscal Tightening – CNBC
MARKETS/INVESTING
Oil Declines From 11-Week High – Bloomberg
Gold firms on dollar ahead of stress test results – Reuters
Euro Climbs as German Sentiment Outweighs Stress-Test Worries – Bloomberg
Gold moving towards global reserve status – Gartman – Mineweb
Strong Outlooks To Push S&P Above 1100 Resistance? – CNBC
Market Timers Remain Subdued About Stocks – MarketWatch
ECONOMY/WORLD/HOUSING/FED
Leading Economic Indicators Fell 0.2% – Bloomberg
Obama signs measure extending unemployment benefits – DMN
Moody’s warns of Hungary downgrade after IMF breakdown – Reuters
U.K. economy posts surprise second-quarter surge – MarketWatch
Study: Foreclosed homes lose 27% of value – Boston Herald
Home Prices are Improving in Ways that Trouble Housing Market – HousingWire
Family bought worthless 2nd mortgage at foreclosure auction – SC Sentinel
Mortgage Securities It Holds Pose Sticky Problem for Fed – NY Times
What Does Wall Street Really Want From Ben Bernanke? – CNBC
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Thanks for the link to the NYT article on the Fed and its MBS holdings. The writer may be laying it on a little thick, but still it seems that the Fed has married in haste and is now repenting at leisure. Of course, all of us who pointed out that they would be stuck holding the bag were brushed aside.
The degreed and highly-credentialed economists at the Fed seem to have forgotten (or never learned) the notion that to get out of a position, you need to find a buyer–and the best way to scare that buyer away is to say that your trade is temporary and will be unwound in the near future.