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
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]
Cathy Zoi, who was the Acting Under Secretary for Energy and Assistant Secretary for Energy Efficiency and Renewable Energy, is going to work for a new cleantech private equity fund sponsored by George Soros and a prominent Silicon Valley venture capital firm.
The new fund will invest in...wait for it..."the energy and resource sectors."
A persistent theme of NetNet is that faith in regulations to improve the financial sector is misplaced. Regulations are typically written under the direction of the most powerful financial institutions, and regulators operate as if they were agents of the companies they are allegedly regulating.
Economists use the phrase “regulatory capture” to describe this dynamic. But that’s a misnomer. It implies that at some point regulations and regulators were free and had to be captured. In fact, they are typically born captives, remain captive, and die captive deaths.
The National Weather Service is in the eye of a budget storm—one that has the potential to grow into a Category 5.
A bill in the House of Representatives is proposing to cut the National Weather Service's 2011 budget by reportedly 30 percent or about $126 million. The proposal is part of the Full Year Continuing Resolution Act.
If the act is passed, the reduction could take effect as early as next month.
There are lots of critical skills you need to succeed on Wall Street. It helps to understand market forces. A facility with numbers is useful. Having a feel for group dynamics is necessary to succeed on trading desks and deal teams. Superb time management, verbal acuity, and judgment are all important.
But, mostly, what you need to do is avoid the things that will destroy your career. And most of the things that will destroy your career go under the general heading of “people.”
I asked NetNet reporter Ash Bennington to look back on his years on Wall Street—where he was a vice-president at Credit Suisse and BB&T—and assemble a list of the people you need to avoid. I thought there might be three or four. I was way off. Ash returned with a list of 25 people to avoid.
You might want to print this out and carry it with you. When you meet someone new, scan the list. Decide if they are someone to avoid. Alternatively, you should take a look at the list and ask if you are on it. If you are, well, don’t be surprised when your colleagues start avoiding you. — John Carney
Nobel Prize-winning economist Robert Shiller says that his key valuation indicator is flashing warning signs.
The Fed is in the early stages of an analysis on changes in bond market liquidity, amid signs that liquidity may be less resilient than in past.
Janus Capital acquired a majority interest in Kapstream Capital and said Kapstream's Palghat will support Bill Gross as co-portfolio manager of the Janus Global Unconstrained Bond strategy.