Banks must take risks

Modern economies cannot grow without credit

The few spatters of economic data this week did not change the plod-along U.S. outlook. Meanwhile the priority story (Europe) was obscured by the media’s demented focus on the Facebook IPO and the blown trade at Chase.

Today markets are on exhausted hold, hoping for some miracle at this weekend’s G-8 meeting.

German 10-year bunds hit all-time-low yields on successive days this week, the bottom at 1.41 percent while Spanish and Italian equivalents reached 6.38 percent and 5.91 percent, respectively. The U.S. 10-year fell to its all-time low, 1.70 percent.