Sure, Goldman Sachs is a premier investment bank with a market cap of over $75 billion and employs some of the smartest people on Wall Street — but Goldman understands The Folks. Especially blue collar folks. Just ask “Steve.”
NetNet With John Carney
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Talking Takeovers In Defense and Intelligence With Michael Chertoff
Posted By: Lori Ann LaRocco
The Defense Department recently announced its plans on how they will improve "the Pentagon's buying power.”
So what does that mean for defense stocks like Northrop Grumman and Lockheed Martin? I
sat down with Michael Chertoff, former Homeland Security Secretary and founder of The Chertoff Group—which, among other things, helps private equity firms hone in on potential acquisitions of companies that might be developing the next big thing for defense.
LL: Where are the investing opportunities in defense during a time where the government will be spending less?
MC: We are seeing an uptick in transactional activity in the defense, security and intelligence space. It’s largely driven by three factors:
Regulation, such as the "conflict of interest rules" which has created a couple of spin-offs from large contractors with their systems engineering units.
The second issue is people are trying to get a handle on what the new budget environment is like and that's causing people to reorientate their capabilities to match what they think the new landscape will be.
That often involves growth through acquisitions rather than organic growth.
And in some ways, the economic environment lends itself to acquisitions. There are some companies out there that are having a hard time with credit so they are looking for salvation in terms of dealing with their cash flow issues. On the other side is a bunch of people sitting on cash, who are looking to deploy it in a way that is effective given the economic uncertainties right now. So I think all of this has resulted in a significant increase of activity compared to the previous year.
Goldman's Mysterious Wind Farm
Posted By: John Carney
The financing of a "clean energy" wind farm was the focus of the advertising campaign Goldman Sachs initiated yesterday. We thought it made sense to do a little investigation into the farm.
Source: Goldman Sachs
We wanted to investigate whether Goldman's claims that its work for a renewable energy company has been good for the environment, good for local businesses and communities, and for good for local employees hold up.
One problem: Goldman won't tell us which wind farm it is referring to.
The financing of a "clean energy" wind farm was the focus of the advertising campaign Goldman Sachs initiated yesterday. We thought it made sense to do a little investigation into the farm.
Ireland Fights Back
Posted By: Ash Bennington
F-Sock Kick-Off: Council plans vote to seek public commentary on Volcker Rule & Systemic Importance.\(CNBC.com\)
Gold Down — For A Change
Posted By: Ash Bennington
Carney — Bank of Canada governor, not our fearless leader — signals delay in rate hikes. (Bloomberg) Despite strong domestic growth, global rate environment may forestall rate increase
Nicole Lapin's Short & Long List
Posted By: Nicole Lapin
Nicole Lapin
Nicole Lapin, of CNBC's Worldwide Exchange, explains what she's long and what she's short this week.
The Fight at the Fed: Wizard of Oz Roars, Clicking Heels Won't Restore Growth
Posted By: Ash Bennington
Two Federal Reserve Bank presidents delivered policy speeches on Wednesday that expressed highly divergent views of monetary intervention. Eric Rosengren, president of the Federal Reserve Bank of Boston, and Charles Plosser, the president of the Federal Reserve Bank of Philadelphia delivered their remarks at separate events.
AP
Charles I. Plosser, President and CEO of the Federal Reserve Bank of Philadelphia
Their speeches seem to sum up two broad views of economics and governance: On the one hand, that government should take continued and innovative action to support the financial markets and the economy as a whole; and on the other, that government’s ability to improve the economy in a highly targeted and meaningful way through policy shifts is limited.
Rosengren is firmly in the first camp. He summed up his position in the intervention debate this way: “These days, as in past recoveries, it is not uncommon to hear some observers say that there is little that policymakers can or should do. This is not my perspective” Rosengren went on to further elaborate his position by saying that policy makers should respond to a slow recovery “vigorously, creatively, thoughtfully, and persistently, as long as we have options at our disposal.”
Comment of The Day: Gloom and Doom or Bubblevision?
Posted By: John Carney
Our favorite comment from yesterday's posts came from a reader reacting to our article about the potentially catastrophic effects of high frequency traders invading the swap market.
How The Other Half Lives: Dog Thief Hookers And Socialism
Posted By: John Carney
Just in case you are wondering what our local socialists have been doing lately, we've decided to bring you this update from the Park Slope Food Co-op in Brooklyn, New York.
Is Spain Far Worse Off Than It Looks?
Posted By: John Carney
That's the allegation in a widely circulated paper by an anonymous writer. The paper claims that Spain overstated its GDP from 2007-2009, understated the country’s decline in growth by as much as 14.2 per cent.
CNBC.com
FT Alphaville ran an excerpt . The full paper can be read over at ZeroHedge .
The central argument of the paper is that several indicators of Spain's economy cast doubt on the official statistics. Spain's unemployment rate, for instance, has risen much faster than you'd expect given the modesty of the officially reported decline in GDP.
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