CalPERS' move to divest itself of $4 billion in hedge fund holdings is galvanizing a debate among many other pension managers.» Read More
We've all had bad days at the office. And, if you've worked in the financial services industry long enough, it's even likely that you have made a mistake that cost a financial institution some money. (Note: The phrase "Look, bad trades happen!" Is still highly unlikely to buy you much sympathy from your boss.)
But when it comes to goof ups: Very few of us have the power to push up the borrowing costs of the federal government of the United States of America.
That's exactly what seems to have happened yesterday to Steven A. Hess, a senior analyst at Moody’s.
The Financial Times Alphaville blog is reporting that Mr. Hess made the following observation to Market News International:
Kyle Bass at Hayman Advisorsis just not an equities guy .That much has been known for a while.
Fed's Governor Dudley Seeks to Reassure on Inflation (CNBC) CNBC's Steve Liesman recently spoke to New York Federal Reserve Governor Bill Dudley about a wide range of issues including the dollar, QE2, growth targets, and inflation. Governor Dudley reaffirmed the Fed's ability to withdraw excess liquidity from the economy when higher growth returns: "We are very confident of our ability to exit when the time comes."
Ireland to Accept Bailout? (Business Week) Prime Minister Brian Cowen may be signaling a willingness to begin negotiations in earnest over the terms of an Irish bailout by the European Central Bank. Then again, he may not. Says Cowen: “There’ll be further discussions there and, I’m sure, there’ll be discussions thereafter as well.” Although the Business Week article does not explicitly make the point, we can perhaps safely assume that Prime Minister Cowen is referring to ongoing negotiations regarding Ireland's budget plans—and not engaging in a playful imitation of Ireland's celebrated 20th century absurdist playwright, Samuel Beckett.
While a lot of attention has been paid today to the "luminaries letter" in the Wall Street Journal urging the Fed to give up quantitative easing, a similarly aimed if better reasoned piece by federal judge Richard Posner seems to have escaped attention.
In his usual direct style, Posner begins by criticizing the term “quantitative easing” as “a pompous, uninformative term for a central bank’s buying debt (bonds, mortgages, commercial paper, etc.) in quantity in an effort to depress interest rates in order to stimulate economic activity.”
Posner goes on to discuss the problems with quantitative easing. His main objections: It runs the danger of creating runaway inflation; it threatens to upset our global trading partners, and it allows politicians off the hook for making serious economic reforms.
Most importantly, however, he says it won’t work.
Current New York Attorney General —and now governor elect —Andrew Cuomo maybe going after Steve Rattner. Again.
An article in today's New York Time's DealBook allows us all to relive the whole sordid mess of the scandal that brought us here in the first place.
Cuomo's office, it seems, has issued a new subpoena to Rattner's old firm, the private equity fund The Quadrangle Group. The subpoena seeks new information about Rattner's compensation, and the financial terms of his departure from Quadrangle, where he served in the role of managing principal until his resignation in February of 2009 .
As you may recall, the original complaint stems from Rattner's alleged role in a kickback scandal centering around New York State pension fund business. Cuomo's continued investigation of Rattner is presumably to gain a stronger hand in his ongoing settlement negotiations with him. Rattner has already rejected a $20 million settlement offer from Cuomo's office. The SEC has reached a separate, tentative deal with Rattner—which calls for Rattner to agree to accept a multiyear ban from the securities industry, and to pay the potentially more palatable sum of $6 million.
Is the real threat of the European debt crisis being underreported in the US?
When news articles appear in the United States about the serious problems currently plaguing the European debt markets, the articles tend to focus on the fiscal worries—and consequent default risks—of individual nations. (Regular consumers of business news in the US are certainly familiar enough with the recent stories of Ireland's credit woes).
But are we missing the bigger picture?
It’s pretty simple to operate. You get a work sheet with various options to cut spending or increased revenue. The goal is to fill the $418 billion budget hole projected by 2015 and a $1.3 trillion hole by 2030.
I solved the shortfall without raising any taxes or touching the core of Social Security. That is to say, 100% of the fix comes from spending cuts. \(You can read all the details here.\) In the end, I actually overachieved.
In an article in today's Financial Times, Portuguese finance Minister Fernando Teixeira dos Santos was discussing the implications of the current simultaneous credit crises in Greece, Portugal, and Ireland.
In reference to the broader framework of the problems faced in Europe today he said the following:
Despite a huge program by the Federal Reserve intended to provide monetary stimulus to the economy, Nouriel Roubini doesn't think we need to worry about inflation.
In fact, he argues that people who take the position that the Fed should curtail its easing policies do not really understand inflation.
In the first two parts of my interview with economist Nouriel Roubini we discussed two issues: Why Professor Roubini believes a gold standard is no longer a viable option for modern economies, and second why monetary easing is a necessary evil .
So let's take a deeper look at Roubini's theory of inflation.
Let's begin with what seems to be the principal conclusion of Roubini's argument. Simply put: "Inflation is not the problem."
Why does he believe that to be true?
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.
The Federal Reserve has asked Credit Suisse to address problems relating to the bank's underwriting and sale of leveraged loans.
In a market of 1,600 ETFs, more are pushing the limits of investing (and common) sense. We put oddball ETFs to the test.
The Fed could surprise markets Wednesday because of the wide divergence in Wall St. views about its next move.