The Indonesian rupiah’s strength is highlighted in today’s “Money Talks” column by DJN’s Rosalind Mathieson; she writes that a politically stable, economically promising Indonesia has given the local currency a big boost (especially compared with the rest of Southeast Asia.) There are risks, but relatively minor ones. Volatility surrounding July’s presidential election isn’t much of a worry, in my view, given the likelihood of Yudhoyono’s peaceful re-election. Rising crude oil prices could swell the fiscal deficit, thanks to the government’s addiction to fuel subsidies. Upside factors include the resource-rich economy’s exposure to a recovery in commodity prices, although Ros points out that a stronger U.S. dollar could weaken the rupiah’s appeal. Continue reading…
Archive for June 17th, 2009
Credit Markets, Currencies, Emerging Markets, Indonesia, Russia, U.S. Dollar / 1 Comment
It hasn’t been easy in the hotel business these days. Business travel is down sharply. So is leisure travel. Not a great recipe for highly leveraged companies. One, Extended Stay, fell into bankruptcy court this week because of a suffocating debt load. Another, which has more flexibility and has been prudently trying to manage its debt, is Hospitality Properties and it hopes to sell stock and use the proceeds to pay down debt. Shareholders of the REIT may not like the dilution the new offering of 15 million shares will cause (the REIT has 94 million shares outstanding).
Bank Rescue Plan, Credit Crisis, Economy, Federal Reserve, United States, Wall Street, Washington / Comments Off
The U.S. Federal Reserve has a reputation for integrity and probity hard to match anywhere on the planet by a private business or a government entity.
It may be misunderstood by some, flat wrong at times, but in its now nearly century of existence probably the strongest charge against the Fed’s reputation for integrity has been at some historical points playing too close to the playbook of the elected president.
It’s that reputation, in part nurtured by its odd structure and affinity for obscurity, that won it in the reform plan announced today significantly enhanced regulatory powers over the U.S. financial system.