Mohamed El-Erian

Linkage: Debt Ceiling Smart Options

Today’s links on loan limits, debt ceiling options, U.S. and Europe’s debt quagmires, Finreg year 1, trading don’ts, and your best source for NFL news. -‘Sacred AAA Rating’ At Risk Even Without Default (InvestmentNews) -Debt Ceiling Charade: The 3 Smart Options (CalculatedRisk) -“Impossible Math” behind Euro Crisis (PragmaticCapitalist) -Mortgage Bankers Reverse Course On Loan Limits

Rates Hold Lows As Greece Bailout Outweighs Manufacturing Inflation

Yesterday we explained how inflation causes higher rates. Today the Fed’s May Empire State Manufacturing Survey showed inflation is rising. Bonds initially sold on the news pushing rates higher, but they’ve since rebounded to slightly positive as investors seek bond safety while Greece negotiates a larger bailout today. As for today’s May manufacturing survey, the