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March 25, 2013

Chicago, Dallas Fed Indices up. Cyprus Bailout.

March 25, 2013

Chicago, Dallas Fed Indices up. Cyprus Bailout.

Chicago Federal Reserve National Activity Index  (February 2013)

– Level +0.44.  Previous was revised from -0.32 to -0.49 taking a bit of the good news away.

– 3 Month Moving Average +0.09

Dallas Federal Reserve Manufacturing Survey (March 2013)

– Business Activity Index +7.4. Previous was +2.2.

Cyprus

The deal which Cyprus cut with the ECB, EU and IMF will have a dramatic effect on uninsured depositors and bond holders.  Savers with more that 100,000 Euros in their account could lose 40% of their balance.  In the EU, deposit insurance goes only to 100,000 Euros. The effects of the Cyprus situation are by no means clear. The broader effects will depend on who loses their assets and what depositors in other countries do to react.