credit markets

Whether it was a fresh startup or a fresh start, fewer Americans seemed willing to take career risks last year, according to a new report by Challenger, Gray & Christmas. The percentage of job-seekers starting their own businesses or relocating for new positions fell to historic lows in 2010.

Republican leaders may be worried about the Federal Reserve's second round of quantitative easing, but the stock and credit markets are delighted: They've improved significantly since the plan was announced. But can the rally be solely attributed to QE2?

Investors hungry for higher yields are flocking to the credit markets, putting junk-bond issuance on a record-setting pace. And lenders are loosening credit standards, while companies take on debt just because it's cheap. Sounds like a familiar scenario.

The Fed is keeping its existing easy monetary policy unchanged. But, it's prepared to take additional action, if necessary, to stimulate the economy and combat falling prices.

Many aspects of the financial crisis are still with us. But when it comes to one of the most profound economic impacts of the 2008 meltdown -- the downright seizure of credit markets -- things could hardly be more different now than during the height of the crisis.

At its August meeting, the Fed agreed to maintain the current monetary policy, but the decision was hardly universal. Some members said the recovery was on track and expressed concern that the decision to reinvest Treasury proceeds would send the wrong signal.

Europe's shakiest economies managed to ride out a sovereign debt crisis this spring with a lot of help from their more stable neighbors and the major central banks. But new data suggests we may soon see a replay of the debt default crisis.

Now that the home buyer tax credit program has expired, job growth and mortgage availability will likely be the key factors determining the rate of existing home sales, which unexpectedly dipped 2.2% in May to a 5.66 million unit pace.

In the debt and credit mess that now extends clear across Europe, Fitch Ratings has put the U.K. on notice to get its finances into much better shape -- pronto.

Ratings downgrades for Spain, Portugal and Greece have alarmed already-rattled credit markets, sending borrowing costs sky-high. As contagion spreads, Europe's politicians need to stop dithering over the bailout and take dramatic steps to reassure markets.