Tuesday, 8 Feb 2011 | 11:20 AM ET

Mark Zandi’s Wacky Mortgage Contraption

Posted By: John Carney
Tom Grill | Photographer's Choice RF | Getty Images

Far more interesting than the details of Moody Analytics chief economist Mark Zandi’s proposal to rework the mortgage market are the meager gains he thinks it would obtain.

Zandi has a proposal to scrap Fannie Mae and Freddie Mac in favor of ten new companies that would guarantee mortgages with an explicit government guarantee.

He’s got all sorts of arguments about why this hybrid public-private system would be better than either a fully public or a fully private model. But look at what he thinks the system would achieve.

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  Tuesday, 8 Feb 2011 | 11:09 AM ET

Must See TV: High Noon in Stamford

Posted By: Ash Bennington

Federal prosecutors are announcing insider trading charges against four more hedge fund employees at 12:00 p.m. today.

But what's more interesting is this: Three of the four are hedge fund managers, which definitely increases the drama quotient. \(The other employee is an analyst.\)

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  Tuesday, 8 Feb 2011 | 9:53 AM ET

Goldman Intern Turns Playboy Bunny

Posted By: Cadie Thompson
Judy Joo
Food Network
Judy Joo

My guess is that not many people who once worked for Goldman Sachs end up working for Playboy, but Judy Joo, a former Morgan Stanley and Goldman banker turned chef, is proving it's not unthinkable.

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  Tuesday, 8 Feb 2011 | 8:49 AM ET

Countries Must Cut Spending—But Can't.

Posted By: Ash Bennington

Countries must cut spending—but can't. (This and other depressing thoughts on the bond markets.) [CNBC via Reuters]

Goldman's contrarian play on European bank stocks. [Bloomberg]

Rate hike in China. (Again.) [Financial Times]

Once again: Meredith Whitney under fire. [CNBC via NY Times]

What does a jump in cash purchases mean for the real estate market? [Wall Street Journal]

The worst Super Bowl commercial. [NY Times]

Gold up in London on speculation of Chinese demand. [Bloomberg Businessweek]

A tutorial: "Bond Trading 101—How to Trade Bonds" [BondSquawk | Hat Tip: Abnormal Returns]

Just how bad is the Greek RMBS market? (Hint: Bad.) [FT Alphaville]

»Read more
  Monday, 7 Feb 2011 | 5:58 PM ET

London Clearing House Considers Gold as Collateral

Posted By: Lori Spechler
Comstock Images | Getty Images

LCH.Clearnet, a leading independent clearing house, is considering a plan to accept gold bullion as collateral against margined positions. London is the world’s largest market for over-the-counter gold trading.

"We’re looking at it closely,” confirms David Farrar, LCH.Clearnet Director of Commodities. “It’s something that, subject to regulatory approval, we’d look to introduce later this year." The Financial Services Authority \(FSA\) is the regulator of the financial services industry in the UK. A source, close to the situation, tells CNBC that nothing is currently pending before the FSA at this time on this matter.

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  Monday, 7 Feb 2011 | 4:54 PM ET

'NYSE Margin Debt Hits Fresh Post-Lehman High'

Posted By: Ash Bennington


Breaking BRICs: Geithner wants Brazil's help on undervalued renminbi. [FT]

Dueling slide shows: Berokwitz hits back at Einorn! [Business Insider]

Intense media navel gazing: AOL/HuffPo Edition. [CNET]

Common sense: Coming to TSA checkpoint near you? [NY Times]

Americans are getting poorer —unless they're not. [Economix]

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  Monday, 7 Feb 2011 | 4:03 PM ET

Credit Bubble Watch: Danaher-Beckman Edition

Posted By: John Carney
Rob Kindler
Rob Kindler

Danaher's cash purchase of the medical diagnostics company Beckman Coulter came in at $5.8 billion, well above the price point that many analysts would have pointed to for Beckman.

Rob Kindler, the head of M&A for Danaher's advisor Morgan Stanley, said today that the price was driven up by the access of private equity to easy credit.

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  Monday, 7 Feb 2011 | 3:32 PM ET

Prez Plays Nice with the Chamber: Does It Matter?

Posted By: Ash Bennington
President Barack Obama
Photo by: Pete Souza
President Barack Obama

“Maybe if we would have brought over a fruit cake when I first moved in, we would have gotten off on a better foot. But I’m going to make it up.”

So saith the president today in a speech delivered to the Chamber of Commerce.

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  Monday, 7 Feb 2011 | 2:45 PM ET

The Wrong Crisis And The Wrong Solution

Posted By: John Carney
Government Regulation
Government Regulation

Dean Baker has provided a provocative and must-read response to the report of the Financial Crisis Inquiry Commission.

His basic response is that the entire premises of the commission was wrong. Instead of focusing narrowly on the “financial crisis” it should have asked how we got into an economic crisis.

“The FCIC investigated risky investments, lax regulation, excessive leverage. And it downplayed the more mundane, but vastly more important, collapse of the housing bubble,” Baker writes.

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  Monday, 7 Feb 2011 | 2:13 PM ET

Mmmmm. Debt-to-GDP Charts. Pretty.

Posted By: Ash Bennington

What's more fun than an über-geeky debt-to-GDP map-chart combo , in a split screen view, from the IMF?

If you answered 'nothing', then today is your lucky day.

» Read More

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