Hedge fund managers are fuming at new political rhetoric against them and their huge paydays.» Read More
If you listen closely enough, you can hear the stagflation storm brewing across the economy. It’s the sound of rising prices and weak economic growth conspiring to create the Federal Reserve’s worst enemy.
Friday’s lame GDP print exemplified where we’re heading, with the economy gaining just 2.8 percent in the fourth quarter of 2010 no matter how much government economists tried to talk up the robust corporate balance sheet and supposed gains in employment.
Yes, this happened.
Municipal bond issuance dropped to an 11-year-low in January. It has not picked up substantially in February, according to the muni bond people I speak to.
January saw $12.2 billion of new debt, a decline of nearly 63 percent from January 2010. Volume hasn’t been this low since January of 2000.
The standard explanation for this is the end of the Build America Bond program, which offered qualified issuers a 35 percent federal tax subsidy to issue taxable debt.
Massive instability in North Africa is terrible news for a fragile US recovery: Though just how terrible remains to be seen.
The New York Times cuts to the chase this morning :
"Higher oil prices restrain growth because they translate to higher fuel prices for consumers and businesses. Mr. Lafakas [a Moody's energy economist] estimates that oil prices are on track to average $90 a barrel in 2011, from $80 in 2010, an increase that would offset nearly a quarter of the $120 billion payroll tax cut that Congress had intended to stimulate the economy this year."
Those are staggering numbers.
Nicole Lapin, of CNBC's Worldwide Exchange, explains what she's long and what she's short this week.
The bullion bull run is strong as investors flock to gold and silver as a safe haven from the turmoil in the Middle East. On Thursday, the spot price of gold and silver hit an all time high in Mumbai, India's largest bullion market.
I caught up with George Milling-Stanley,Managing Director of Government Affairs at the World Gold Council, to talk about what some of my contacts are calling "a golden wave of opportunity."
U.S. economy grew 2.8%, below economists forecasts. [CNBC.com via Reuters]
London Stock Exchange halted due to technical glitch [CNBC.com via Reuters]
"Banks, Obama butt heads on mortgages" [NY Post]
"Time to Plot Fed's Exit Strategy Getting Closer: Lacker" [CNBC.com's Jeff Cox]
Undervalued renminbi kills US manufacturing competitiveness. [Deal Breaker via Tudor Investment]
25 guys to avoid on wall street [NetNet]
Felix Salmon on the market as a schizophrenic pundit. [FelixSalmon]
Daniel Indiviglio on home prices and foreclosure trends. [The Atlantic]
"The Great Nevada Hooker Debate" [Forbes]
New numbers from Freddie. [Calculated Risk]
Leaving Goldman to blog. [The Observer]
Moving to New York. [Thought Catalog]
The CBOE Volatility Index fell below 12 as Federal Reserve Chair Janet Yellen began speaking.
CNBC's "Halftime Report" traders tackled the markets as trading entered the second half.
Market watchers are expecting Greece to reach a deal with its international creditors by the June deadline, strategists say.