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
I don't care if you're in love, but it's Friday. Here's what you may have missed overnight and what you need to know today while you head to work and try to get The Cure outta your head:
Greg Fleming has been tapped to run Morgan Stanley's wealth management business.
Susan Craig at the New York Times gets credit for breaking the story.
"James Gorman, the firm’s chief executive officer, announced the move on Wednesday. Mr. Gorman and Mr. Fleming are old friends; the two worked together as executives at Merrill Lynch, now owned by Bank of America," Craig writes.
It Ain't Brain Surgery—But the Pay is Twice as Nice [Bloomberg] "Wall Street traders discouraged by declining bonuses this month can take solace: They still earn much more than brain surgeons and top U.S. generals. An oil trader with 10 years in the business is likely to earn at least $1 million this year, while a neurosurgeon with similar time on the job makes less than $600,000, recruiters estimated. After a decade of deal-making, merger bankers take home about $2 million, more than 10 times what a similarly seasoned cancer researcher gets."
Economists See Improving Conditions [Wall Street Journal] "Economists surveyed by The Wall Street Journal are increasingly optimistic about the pace of the recovery, predicting the U.S. will grow at better than a 3.2% annual rate in each quarter this year."
The Federal Reserve’s easy money policies have created 3.5 million private jobs, if you believe Fed Vice Chairman Janet Yellen.
Michael Shedlock doesn’t believe her. But, he points out, even if you do believe that the Fed is creating 250,000 private sector jobs a month, it is doing so at an enormous cost .
“The Fed bloated its balance sheet by $2.3 trillion to allegedly create 3.5 million jobs,” Shedlock points out. “My math suggests it takes $657,142.86 in balance sheet additions to create a single job.”
We’re still an almost unnoticeable friendless peon when compared to our big sibling, CNBC, which has somewhere like 75,000 friends on Facebook.
But we’re still proud and we’re hoping you’ll sign up.
Technically, you cannot actually “friend” NetNet. Facebook has some silly rule that only real people can have friends. But you can “like” us on Facebook . That way you’ll get some of our posts in your Facebook newsfeed. Not more than a few a day, though. So don’t worry about having us clog up your Facebook page.
We’re also on Twitter . Actually, we’re on Twitter twice. There’s @cnbcnetnet , which is a feed of only our “greatest hits” during the day. If you are really hardcore and want every single NetNet post to show up in your Twitter feed, follow @netnetdigest.
The debt ceiling does not seem to have many friends these days.
John McDermott at FT Alphaville , the blog Self-Evident , and Felix Salmon have all issued thrashings . The gist of the complaints is that since the debt ceiling will eventually be raised, all the political debate leading up to the eventual raise is just political posturing at best, and dangerous demagoguery at worst.
The fears of the debt contagion spreading throughout Europe has been a source of concern this week as investors question which are countries too big to bail out. The acronym for the countries in question—Portugal,Italy, Ireland, Greece and Spain is perfect—PIIGS .
These countries oinked out spending like it was going out of style and now they can't pay their debts. But unlike sending off a fat pig to slaughter, the economic ramifications of letting any of these pigs going belly up could create what many fear an economic catastrophe for the euro itself.
I decided to speak with Jim Rickards, Senior Managing Director for Market Intelligence at Omnis, about this threat.
Here is an aspect of the mortgage foreclosure story you may not have heard about: US banks are apparently booking income on cash flow that they have not yet received, according to a recent article on Forbes.com
The CEO of AngloGold Ashanti surprised even Joe Kernen this morning with his comment that it cost “more than $1000 an ounce across the industry to produce an ounce of gold.” Surprised me, too so I did a little research.
Sort of rich people feel bad about themselves because the truly rich are really richer.
That, in a nutshell, is the conclusion one economics blogger reached based on an analysis of income distribution data.
And the internets have been buzzing about it ever since.
Greece and China bear watching but will have limited on the U.S. economy or markets, strategist Tom Lee says.
No matter which way the Greek vote goes, the European Central Bank on Monday will face a series of agonizing decisions.
Greek banks are preparing contingency plans for a possible "bail-in" of depositors, sources said. The FT reports.