Happy Wednesday. We now return to our regularly scheduled program of spring.» Read More
Nicole Lapin, of CNBC's Worldwide Exchange, explains what she's long and what she's short this week.
(Reuters) Perhaps the most interesting thing in Bernanke's defense of the Fed's inflationary policy is that he blamed recent currency movements on Europe's bailouts. Who knew he had that kind of chutzpah?
"We have too much private debt in the case of Ireland," according to Nouriel Roubini.
But the nub of the crisis is this: "We have decided to socialize the private losses of the banking system. Now you have a huge increase in public debt—going from 7 percent to 100 percent of GDP. Soon it will be 120 percent."
And, turning more broadly to the rest of Europe, "Greece is already at 120 percent."
Roubini believes that further attempts at intervention have only increased the magnitude of the problems with sovereign debt. He says, "Now you have a bunch of super sovereigns— the IMF, the EU, the eurozone—bailing out these sovereigns."
General Motors Shares Close up after IPO (CNBC via Reuters) GM shares closing up is good news: It means that investors lucky enough to get in on the allocation didn't just flip their shares in the open market en masse—only to be greeted by weak demand and falling prices. But don't pop the champagne corks just yet. As the article explains: "At $33 a share, the partial sale represents a loss of about $9 billion on taxpayers' original investment, assuming the extra shares go at the same price. " Right. There's that.
The TSA full body scanners are the last straw. She's breaking up with air travel.
But don't feel too bad. It's not you, it's me. Or rather, it's the TSA.
I'm not going to lie. It's come between us. If I have to let someone else see me naked in order to be with you—well, I'm just not that kinky. And deep down, I don't think you are either. I think it's the TSA making you act like this. Frankly, you haven't been the same since you started running around together.
California’s delay of a $10 billion municipal bond sale has only fueled existing chatter on trading floors that the Federal Reserve would take the extraordinary step of buying these securities just as it has with Treasuries.
Hedge funds are poised to close out a strongly profitable year, even though smaller firms are under pressure as investors still have the jitters over an unpredictable market.
Industry veterans refuted rumors that have passed our way regarding a strong flow of redemptions as managers close out their books for 2010.
In fact, the $2.34 trillion dollar hedge fund business saw $26.6 billion of inflows in the third quarter as part of a net increase of $120.9 billion, according to data from Bank of America Merrill Lynch. That equates to a 5.45 increase in total assets under management.
The SEC is investigating Citigroup amid allegations that Citi pressured an independent manager to include particular assets in a mortgage deal, among other claims.
Jake Bernstein and Jesse Eisinger explain in their ProPublica article :
"The deal was a collateralized debt obligation named Class V Funding III, which was completed in late February 2007. The CDO was made up of pieces of other CDOs that were themselves backed by risky slices of subprime mortgages. The deal was managed by Credit Suisse Alternative Capital, a division of the Swiss banking giant. Independent managers such as Credit Suisse were charged with picking the best assets for the CDO. Citigroup arranged and marketed the deal to investors."
"Robo-signing" is a big topic in Washington this week with two Capitol Hill hearings addressing the scandal. First up was the the Senate Banking Committee, where Chairman Christopher Dodd called the crisis the "tip of the iceberg.” Today we get the House's hearing on the issue.
Congresswoman Shelley Moore Capito \(R-WV\) is Ranking Member of the subcommittee for Housing and Community, which is holding a hearing entitled "Robo-Signing, Chain of Title, Loss Mitigation and Other Issues in Mortgage Servicing.” I asked her what she plans to ask the panel’s witnesses. We also addressed her thoughts on the effect of Dodd-Frank regulatory reform on housing the the financial sector.
Everyone's buzzing about HFTs having a speed advantage but this NYU professor and former HFT trader says not so fast — there's more.
Ex-Galleon trader Turney Duff offers an insider's view of how learned about Wall Street's dirty little secret: insider trading.
Fed speak may trump earnings reports and economic data, guaranteeing another volatile trading day.