All those headlines about new stock market highs may look sexy, but life for active managers hasn't been quite so much fun.» Read More
All the protesting going on in Europe seems to have finally stirred the Germans to action.
Apparently, some young Berliners, who call themselves the "Hedonist International," are fed up with rising rents and are retaliating by crashing apartment viewings dressed in nothing but their birthday suit.
The protesting is going on in East Berlin, which is an area that has apparently seen a significant increase in its yuppie population. The Local describes it as being "transformed from a hang-out of squatters and punks to a haven for hipsters and buggy-pushing young couples."
I can't say I am surprised that the President's Deficit Panel failed to get enough votes to move its plan forward to Congress.
How could they when one of the biggest price tag items—ObamaCare—couldn't be touched?
Larry Lindsey, President and Chief Executive Officer of The Lindsey Group, explains in today's interview why Obamacare could not be touched. Lindsey was one of the key players behind Bush's $1.35 trillion tax cut plan, calling it an "insurance policy" against an economic downturn.
Blackstone Group's chief executive Stephen Schwarzman is fleeing the United States for Europe.
John Kinnucan just got a subpoena from the FBI, according to Courtney Comstock at the Business Insider.
The eye-bulging total amount that PDCF lent to banks is $8.95 trillion.
The Primary Dealer Credit Facility (PDCF) was an overnight lending program set up by the Fed to help banks manage short term liquidity issues during the financial crisis.
The numbers cited here for that program represent the total amount banks received in aggregate—not the amounts outstanding at any point in time. (For example: If a bank tapped the PDCF for a million dollars five days in a row, it would be represented here as $5 million in total borrowing.)
This rollover and reissue effect is one of the reasons why the numbers look so gargantuan.
The other reason is this: The Fed handed out a ton of money.
Nicole Lapin, of CNBC's Worldwide Exchange, explains what she's long and what she's short this week.
"Crisis-Hit Banks Flooded Fed with Junk" (CNBC via Financial Times) I first wrote about the issue of collateral quality on Wednesday. The story continues, in today's Financial Times: "Banks flooded the Federal Reserve with billions of dollars in 'junk bonds' and other low-grade collateral in exchange for much-needed liquidity during the crisis, as the financial sector struggled under a crippling credit crunch, new data show". Watch for the details of just how bad that collateral really was to emerge over the next few days, as journalists and others continue to pore over the Fed's spreadsheets.
It will take some time to tease out the broader trends from the data; in the meantime, look for thought provoking anecdotes will drive the discussion. For example, the following: "Within a day of easing the collateral requirements, Credit Suisse had borrowed $1 billion from the PDCF, using it for the first of only two times, against a collateral portfolio that was made up of 91 percent equity. "
Bad Employment Numbers: 39,000 New Jobs—Economists Predicted Number 3.5 Times Higher \(CNBC via Reuters\) Bad Numbers: "Nonfarm payrolls rose 39,000, with private hiring gaining only 50,000, the Labor Department said. However, overall employment for September and October was revised to show 38,000 more jobs than previously estimated." The expectations were far higher: "Economists had expected payrolls to increase 140,000 last month and the unemployment rate to be unchanged at 9.6 percent." More raw data: "Employment in the goods-producing sector fell 15,000, weighed down by manufacturing payrolls which fell 13,000 and construction shedding 5,000 jobs. Employment in the private service-providing sector rose 65,000 in November, though retail hiring fell a surprising 28,100 despite expectations of a busy holiday season. The workweek was steady at 34.3 hours in November and average hourly earnings edged up 1 cent."
I regard prediction as something of a scandal. The world is far too complex and unpredictable for anyone to spend too much time forecasting. For the most part, it’s far better to forego fortune telling and instead figure out how you can be robust and agile enough to deal with unexpected shocks.
But when the shadowy benefactors behind NetNet’s infiltration of CNBC issued an edict requiring me to make five predictions for 2011, I set aside my qualms. My very first prediction involves the exit of one of the biggest guys in finance from the corner office. Click here to find out who and read the rest of the predictions.
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.
A number of banks, including JPMorgan Chase and four others, were struck by hackers in a series of coordinated attacks this month.
Caught in a tug of war between a tightening U.S. Fed and an easing European Central Bank, yields have taken dramatic turns this week.
A program to change the way small-company stocks are traded has drawn worry that the initial steps are too tepid.