“Fear of the unknown” fallout from Europe’s sovereign-debt crisis, similar to the concern at the start of the subprime-mortgage market collapse, is keeping volatility high in financial markets, according to Jim Bianco .
It depends on where you look. Stocks within 3 percent of all-time highs and gold down 21 percent so far this year suggest there is little stress, while U.S. credit-default swaps tell a different story. They've spiked dramatically in the past several days.
David Ader survived a heart attack in a jet over the Atlantic, missed a chance to work at the CIA thanks to his friend the international spy, changed jobs during the worst financial crisis in a lifetime and helped upstart CRT Capital Group LLC almost double revenue in two years.
The Federal Reserve announced at the conclusion of today's meeting that it will continue its maturity extension program, known as Operation Twist, through the end of the year. This time it plans to buy $267 billion of notes and bonds with maturities of six to 30 years, and to sell an equivalent amount of short- term bills and notes.
Bill Gross, manager of the world’s biggest bond fund at Pacific Investment Management Co., said the additional easing programs hinted at by Federal Reserve officials will push yields on longer-term Treasuries higher.
Fannie Mae and Freddie Mac mortgage bonds pared losses relative to Treasuries with the market for government-backed home-loan debt after heading for its worst month since 2008 at the height of the global financial crisis.