Bloodbath at DE Shaw: 10% Layoffs (Financial Times)
Treasury yields have been rising in anticipation of the Fed slowing down QE. When the central bank officially shifts directions, yields might actually fall.» Read More
The David Tepper Rally has not yet turned into Tepper Rout in the markets—the major indexes are holding just about where they went immediately following Tepper’s remarks on Squawk Box—but his “win-win” analysis is taking a drubbing from respected financial commentators.
Most of the criticism takes aim at Tepper’s belief that Fed policy aimed at reviving the economy will boost the values of financial assets. In Tepper’s brief, stocks will do well if the economy recovers on its own or they will do well if the economy falters and the Fed intervenes.
No doubt he’s encouraged in his view by the fact that he made a king's ransom—no, make that an emperor’s ransom—on betting the government’s intervention on behalf of banks would boost the value of their stocks and bonds. Hey, it worked last time: let’s double down on government aid.
Yesterday we brought you David Rosenberg’s critique , which can be summed up as “the first round of quantative easing didn’t work, so why would anyone think the next round would work?”
When the Senate HELP Committee holds its hearing on for-profit schools Thursday, it's likely to get an earful from Kathleen Bittel, a current employee of Education Management.
We may be in for another tornado.
Earlier today the National Weather Service issued a "tornado watch" for all five boroughs of New York City, the entire state of New Jersey, eastern Pennsylvania, and the Hedgfundistan parts of Connecticut.
In short, many NetNet readers may be facing a serious storm.
The City Room blog at the New York Times explains that "tornado watch" is a technical term that weather officials use to confuse the public.
Meredith Whitney is out with a new report that says the states' out of control spending and over-leveraging pose the biggest systemic threat to the U.S. economy.
Democrats and Republicans are locked in the same old fight they have been in for decades. You know the one, the fight about tax cuts and their role in stimulating the economy.
Rep. Paul Kanjorski took a swipe Monday on Squawk Box at former House Majority Leader Dick Armey's claims that allowing the Bush tax cuts to expire would stall the economy. He pointed out that in 1993 Dick Armey said "the sky is falling" because of Clinton administration tax hikes and the economy was "going to go into an absolute disaster."
Obviously the sky stayed aloft and the late nineties economy was not an absolute disaster.
We asked Dick Armey to respond to Kanjorski's interview.
A hedge fund advisor is telling clients that the Fed is preparing new easing measure that it will announce in the first days of November because the central bankers have "run out of patience" with the US economy’s inability to create jobs, according to a report from Reuters.
In a research report released yesterday, Bank of America Merrill Lynch expressed doubts about the ability of additional quantitative easing to further increase economic confidence.
While acknowledging that further declines in interest rates would aid mortgage refinanciability, most of the BofA/ML research report focuses on the costs associated with quantitative easing. The principal objection of BofA analyst seems to be associated with the risks of QE2 to ignite future credit bubbles.
The analysts go on to write: “In our assessment, further liquidity injection beyond some additional marginal transmission mechanism into mortgage refinancing or housing affordability would achieve little impact on the real economy.”
Edward Lazear, chairman of the President's Council of Economic Advisers under president George W. Bush and a current Stanford professor, has written a piece for the Wall Street Journal advocating a solution to our current fiscal woes that does not involve tax increases.
His solution, in two steps: 1) cut spending increases implemented since 2008; and 2) constrain future spending by implementing cost constraints indexed to inflation.
We look at some of his numbers:
CNBC’s own Dennis Kneale wrote a highly thought provoking piece last Friday about John Chambers’ new proposal to slash tax rates on the revenue U.S. corporations earn overseas.
Under the existing code, overseas corporate income is currently taxed at 35%. Because tax is collected only after profits are repatriated to the U.S., those funds often remain parked offshore, outside of the United States. Chambers overseas rate cut proposal would lower that tax rate from 35% to 5% — which has the potential to bring hundreds of billions of dollars back into the U.S. economy.
The numbers involved are impressively large: It is estimated that there are currently $1.2 trillion in funds parked by U.S. companies overseas, and 1 trillion of those dollars are believed to be concentrated among 75 of the largest corporations in America.
Hong Kong's central bank extends its investigation into possible benchmark rate manipulation to include HSBC.
Whatever Ben Bernanke says Wednesday afternoon threatens to rock some part of the financial markets.
CNBC's Maria Bartiromo discusses the day's top business and financial stories, and looks ahead to tomorrow's Closing Bell.