Bill Gross thinks conditions are ripe for a liquidity crisis, and he points a finger at his old firm for its potential to be at the center of the storm.» Read More
A wiretapped telephone conversation played earlier this week during the trial of Galleon founder Raj Rajaratnam reveals then-Goldman Sachs director Rajat Gupta disclosing confidential board information to Rajaratnam in 2008.
Oddly enough, it may wind up being the best defense Gupta has against civil charges of insider trading.
The Japanese Yen has been gaining strength against the dollar following the tsunami and Japan's subsequent nuclear crisis—so much so that I thought I was reading the chart backwards.
The general explanations given for the Yen's appreciation are currency repatriation and risk aversion.
In an article in the business blog City AM, Boris Schlossberg, Director of Currency Research, at GFT Forex explains :
A Chinese coal baron has just purchased a red Tibetan mastiff for 10 million yuan, which is about $1.5 million.
If Japan's nuclear disaster has made you wonder which of the 104 US nuclear plants is the riskiest, the Nuclear Regulatory Commission is one step ahead of you.
In fact, the NRC has even calculated the risk of "catastrophic failure" at a US nuclear plant caused by an earthquake—which is precisely the scenario that ultimately occurred in Japan.
Those tame core inflation numbers? Well, they really aren’t so tame after all.
Tuesday brought another round of misleading government statistics relative to price increases brought on by Federal Reserve monetary policies and global growth.
As Congress continues to kick the fiscal can down Constitution Avenue with another Continuing Resolution, a trifecta of policy storms is brewing and will come to head in less than a month. Lawmakers will have not only the 2011 budget to contend. They're also facing the 2012 budget and the debt ceiling.
Americans will also find out then if the President will come off the sidelines as the pragmatic leader to take sides with Minority Leader Nancy Pelosi or Minority Whip Steny Hoyer on the spending debate.
It will be a defining moment for the President in terms of how he leads the Congress in taking a stand on its spending. Americans who voted for change this past November will see if their elected officials have the political courage to take on the difficult choices that need to be made to right Uncle Sam's lopsided balance sheet.
On Tuesday, the first fiscal cannon in the brewing budget battle was released on the GOP side when Congressman Kevin Brady \(R-TX\) along with Majority Leader Eric Cantor \(R-VA\) unveiled a major JEC analysis of how government spending cuts can help drive economic growth. I caught up with Rep. Brady on the analysis.
For global financial markets, once-in-a-lifetime events are happening with such regularity that black swans may as well be white swans.
Such supposedly rare occurrences, brought into the national consciousness largely through Nassim Taleb’s 2007 book, “The Black Swan,” have dominated the markets for more than a decade.
They include the Internet explosion in the late 1990s, the ensuing dotcom bubble burst and stock market selloff a few years later, the 2001 terrorist attacks, the collapse of the real estate market that began five years ago, and now, the events in the Middle East and Japan.
The “highly improbable consequential” event is how Taleb frames the Black Swan phenomenon, and each time they arise, the markets react violently.
The international outpouring of support for the people of Japan has been a truly wondrous thing to behold.
It’s heart-warming to see so many individuals around the world seek out ways to help in the wake of the serial disasters Japan has suffered. The noble charitable instinct at work behind things like the “help Japan” poster campaign should be applauded.
It’s difficult in these situations to be the one trying to provide some sober thoughts about how we can most effectively respond and channel our charity. Unfortunately, the truth is that ear-marking donations in response to disasters is largely counter-productive. It would be far better if those who feel drawn to help use this as an occasion to make a general donation to international aid agencies.
Doctors Without Borders/Médecins Sans Frontières \(MSF\) specifically avoids support campaigns based around specific emergencies. Here is their logic:
Bill Gross thinks conditions are ripe for a crisis, and he points a finger at Pimco to be at the center of the storm.
If there was ever an argument for owning a broad portfolio of stocks, the first half of 2015 is Exhibit 1.
Monday's violent selloff could be the prelude to a more volatile second half, but strategists still expect the S&P 500 to gain.