Maybe this is what happens when a central bank becomes too transparent.» Read More
Lower profits at Ford: Shares drop 7 percent in premarket trading. [Reuters CNBC]
John Paulson banks $5 billion in profits —which may be the best single year gain in investing history. [WSJ]
Geithner says global inflation is still “not high on the list of concerns,” for the world's economy. [WSJ]
Sarah Lee is splitting in two. [Financial Times]
Welcome to weather hell: NYC is the new Buffalo. [New York Times]
This probably is not the sort of league table anyone hoped to top.
The FCIC today released its official report on the financial crisis, along with two dissenting reports. Together they run 633 pages, including the footnotes but not including the index.
Did NYC just buy an $115,000 marketing campaign?
If you follow the blogosphere, you’ve probably already heard some of the buzz about Rachel Sterne, the newly minted Chief Digital Officer (CDO) for the City of New York.
From the straight ahead article on WNYC.org “The Woman Upgrading Bloomberg’s Government: Rachel Sterne ” to the slightly more spicy article on The Observer, “Everybody Calm Down About Rachel Sterne, For Chrissakes ” \), people—or at least the press--seem duly interested in the first paid CDO for a major city.
Another important insight from Peter Wallison’s must-read dissent from the FCIC report released today is that government policies created an artificial demand for risky mortgages—leading to a severe underpricing of risk.
Here’s how it worked. Beginning in the early 1990s, government regulations made FHA, Fannie and Freddie, mortgage banks and commercial banks of all kinds into highly motivated buyers of risky mortgages. What happened next was disaster.
Peter Wallison more or less demolishes the conventional wisdom —and now the official Federal Crisis Inquiry Commission view—when it comes to the collapse of Fannie Mae and Freddie Mac.
Over at Barry Ritholtz’s “The Big Picture,” Bill Black has been publishing a series of posts on how mortgage lending should be regulated. Black, who is the author of “The Best Way to Rob A Bank Is to Own One,” does an admirable job at pointing out how pervasive fraud arises and undermines market discipline.
Unfortunately, his proposals for changing the mortgage lending system to counter fraud just won’t work.
CNBC's Patti Domm and Jeff Cox discuss the jobs report and the current dilemma of long-term unemployment.
CNBC's Patti Domm and Jeff Cox discuss the recent GDP numbers and what factors have been affecting it.
Investors give and investors take away, and nowhere has that been more true lately than in value stocks.
Blackstone is aiming to raise about $16 billion for its latest buyout fund, the Wall Street Journal reported, citing sources familiar with the matter.
Investors are "little behind the curve" on interest rates, Wharton's Jeremy Siegel tells CNBC.
Art Cashin of UBS says investors are repositioning themselves ahead of Alibaba's IPO.