Friday, 3 Dec 2010 | 1:27 PM ET

Lawrence Lindsey: If We Don't Extend Tax Cuts, We're Headed for a Double Dip

Posted By: Lori Ann LaRocco

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.

» Read More
  Friday, 3 Dec 2010 | 12:15 PM ET

Where Is Steve Schwarzman Going?

Posted By: John Carney

Blackstone Group's chief executive Stephen Schwarzman is fleeing the United States for Europe.

»Read more
  Friday, 3 Dec 2010 | 11:56 AM ET

Nuke Gets Subpoenaed

Posted By: John Carney

John Kinnucan just got a subpoena from the FBI, according to Courtney Comstock at the Business Insider.

»Read more
  Friday, 3 Dec 2010 | 11:12 AM ET

Eye-Bulging Totals

Posted By: Ash Bennington

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.

» Read More
  Friday, 3 Dec 2010 | 10:34 AM ET

The Business Strike Shows Up in The Jobs Numbers

Posted By: John Carney

The shockingly weak jobs numbers released this morning are evidence of something I've talked about in this space: American businesses are on strike .

»Read more
  Friday, 3 Dec 2010 | 10:30 AM ET

Nicole Lapin's Short & Long List

Posted By: Nicole Lapin
Nicole Lapin
Nicole Lapin

Nicole Lapin, of CNBC's Worldwide Exchange, explains what she's long and what she's short this week.

» Read More
  Friday, 3 Dec 2010 | 8:48 AM ET

Bad Employment Numbers: 39,000 New Jobs—Economists Predicted Number 3.5 Times Higher

Posted By: Ash Bennington

"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."

» Read More
  Thursday, 2 Dec 2010 | 4:41 PM ET

The Scandal Of Prediction or Here's What Will Happen in 2011

Posted By: John Carney

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.

Businessman with crystal ball
Fredrik Skold | The Image Bank | Getty Images
Businessman with crystal ball

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.

» Read More
  Thursday, 2 Dec 2010 | 4:33 PM ET

Sheila Bair Tells Us to Ignore WikiLeaks Rumors

Posted By: John Carney

Bank of America customers should ignore speculation that the bank could be the next target of WikiLeaks, the head of the FDIC said today.

»Read more
  Thursday, 2 Dec 2010 | 4:04 PM ET

Fed Governor Warns Banks Don’t Have Enough Reserves for GSE Put-Backs

Posted By: John Carney

We were so caught up with the Fed’s big document dump yesterday that we missed the important testimony about put-back risk given yesterday by Federal Reserve governor Daniel Tarullo to the Senate banking committee.


Tarullo message was very clear: the big banks have failed to properly reserved for put-backs.

» Read More

About NetNet

  • NetNet is where you'll find the low-down and the high jinks of Wall Street. It's the place for insider stories, trader gossip, and tales of the foibles of the moneyed crowd and the culture of finance.Wall Street news and commentary served fresh all day long.


Wall Street