Wall Street is slowly coming to a grips with an economy that offers not breakout growth but more of the mediocrity that could keep rates on hold.» Read More
Earthquakes, hurricanes, floods, tsunamis, volcanoes and even chemical or nuclear disasters can provoke a strong urge on the part of people to want to provide disaster relief in the form of charitable donations directed at those afflicted by the most recent disaster.
It's like Marie Antoinette talking about the falling price of cake: That's the kind of reaction you get when you go to Queens and tell a room full of ordinary folks that the price of iPads is falling. Especially when you're a central banker.
As previously discussed, one of the bigger revelations that could cause issues for Raj Rajaratnam is that his “business associate and friend,” Rajat Gupta, passed him inside information obtained from Gupta’s post as a board member of Goldman Sachs, which the Galleon founder proceeded to \(allegedly!\) trade on. In one particular instance, on October 23, 2008, Gupta rang up Rajaratnam twenty three seconds after an informative call with Lloyd Blankfein about the company’s financial situation. The swiftness with which Gupta funneled information to his pal presumably pleased Raj greatly, as it was a characteristic he looked for in all of his tipsters, going so far as to put it at the top of the ‘must haves’ in the listing for the gig. So you can imagine that the hedge fund manager was not at all pleased when Rajat tried to resign from the Goldman board and dry up his well.
Pressure is building for the US to take action in Libya.
The Arab League formally proposed that the UN authorize the creation of a no-fly zone. France and Britain have drafted a resolution authorizing the no fly zone. The matter is being debated among UN Security Council members . France and Britain are trying to forge an agreement on a no-fly zone among G-8 members at a meeting in Paris. Russia has softened its stance—saying it wants more information on the Arab League proposal .
Cov lite Loans—loans without the usual protective covenants to safeguard lenders—are making a major comeback. Ominously, this uptick in cov-lite loan issuance coincides with a Moody's research note, which I wrote about on Friday, that suggests grim prospects ahead for future defaults in cov-lite.
An anonymous website associated with activists from Operation LeakS released a cache of emails accusing Bank of America of "fraud" in handling its mortgage files.
Despite pressure from federal prosecutors overseeing the case against Raj Rajaratnam, the Securities and Exchange Commission pushed ahead with its insider trading case against Rajat Gupta because of his status as a sitting board member on public companies.
The 21st Century world is fragmenting at an alarming pace—economically and politically—and the old models of understanding global dynamics are struggling to keep up with the breakneck speed of change.