One of the mysteries of the post-financial crisis world is why the U.S. has lacked inflation despite all the money being pumped into the economy.» Read More
"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.
Golf and finance go together—as everyone knows.
There's something about the quiet of nature, the fresh air and sunshine—and the competition —that just seems to bring financial services types together.
And one guy, Sam Evans at Steve Cohen's SAC Capital, gets to do it virtually all day long. According to a Reuter's article published today:
"Unlike his co-workers, the hundreds of traders and analysts who work at Steven Cohen's $12 billion hedge fund, Evans does not stare at computer screens, map out stock charts or work the phones for information on the markets all day. Rather, he spends much of his time negotiating the greens—quite literally. Evans, 49, who joined Cohen's Stamford, Connecticut-based firm in August 2009 after more than 20 years as an institutional stock broker, is SAC Capital's unofficial golf pro. Evans job isn't so much helping SAC Capital portfolio managers and others at the fund with their strokes, as it is helping them gain a better understanding of some of the companies Cohen's hedge fund puts money into."
Sweet gig, right?
Think of making partner at Goldman like becoming a Made Man in a Scorsese film: "It's the highest honor they can give you. It means you belong to a family and a crew."
So when the boss of bosses —the capo di tutti capi —comes down to congratulate you, it's Kind of a Big Deal.
Such was the case yesterday when Lloyd Blankfein went down to the trading floor to congratulate the new Goldman partners. According to Katya Wachtel at Business Insider : "Traders and associates saw their boss wandering around the floor— in a shirt and tie, no jacket —and, as in times past, were pretty excited to see him."
And, as Wachtel further points out:
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.
Wharton's Jeremy Siegel just introduced a caveat to his perennially bullish outlook for the markets.
September is typically not good for the market, says NYSE floor trader Kenny Polcari. Is there pain ahead?
Bove sees a scenario in which long-term financing that has come with fixed interest rates is endangered as mortgage buyers dry up.