Monday, February 08, 2010

– my comments are in italicsHappy Birthday Jules Verne (182)

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Greece - Greece will lower the current 75,000 euro income threshold that is subject to a 40 percenttax rate as part of reforms to urgently boost government revenues – Reuters

– will similar measures betaken in other countries who need to get their fiscal house in order?

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Support for the weaker Euro? French Finance Minister Christine Lagarde said the strengtheningU.S. dollar against the euro could be a positive development for the European economy. "We alwayscomplained about the dollar not being strong enough," Lagarde said. "That is clearly an improvement."

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Fed to outline tightening plan this week; Bernanke to layout tightening blueprint (the House isholding hearings on Fed exit strategies on Feb 10 – Bernanke will be speaking here); key to tighteningplan will be the rate the Fed pays on excess reserves (the rate paid on money left on reserve w/the Fed bythe nation’s banks). The Fed is still at least several months away from raising rates or starting to drainreserves. WSJ

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Geithner says odds low for a double dip in the US and also said the US would never lose its currentAAA rating.

– is that reassuring?

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Fed and other bank regulators issued a statement to banks on Fri (this hit during trading) urging themto increase lending to small businesses.

NFIB Small Business Expected Credit Conditions

Small business owners are still quite pessimistic on expected credit conditions.