A market priced for perfection will start to wilt when investors realize things aren't particularly perfect.» Read More
It was a dark and stormy night. A dozen or so men from the higher reaches of hedge funds and private equity firms had gathered together in the basement of a building in Greenwich Village. The purpose that had brought the dozen together was not plotting out the next big trade.
These men were there to play ball. Literally. They were playing basketball.
Just because covenant-lite loans didn't implode during the last credit crisis doesn't mean they're safe: The next downturn in the credit markets may be all it takes to push the risky loans over the cliff face.
An oil price spike may not be as bad as you'd think.
That's the message of an analysis from Ross DeVol, the Executive Director of Economic Research at The Milken Institute, who has taken the long-term view on the looming oil price crisis.
It's deadline time again for the NFL as the team owners and players stare in the face another expiration date.
Historically, the NFL has never lost an entire season to a strike. But its worth asking, from a credit-wise perspective, how long could the stadiums and teams hold out without having a negative impact on their credit?
I spoke with Jodi Hecht, director of Project Finance at Standard and Poor's, who recently ran analysis on this. At first S&P said if there was a work stoppage, the stadiums and teams could make their debt payments for as long as two years. They recently revised their outlook to one year. I decided to ask her why.
Earthquake, Tsunami slam Japan. Check here for updates throughout the day. [CNBC.com via Reuters]
Charlie Sheen files $100 million dollar lawsuit #Winning or #Losing? [NYTimes]
Banks fight with the Fed over 12 cents [CNN Money]
Looks like a lot of early birds will be getting the iPad 2 today. Apple expected to sell more than 600,000 during debut [Bloomberg]
Batch of economic data includes monthly retail sales and consumer sentiment index [CNBC.com via Reuters]
The quake 100x larger than the one that devastated Haiti happened during my watch. Here are all of the quake and beyond updates I got for ya:
Should you borrow against your house to buy stocks? (Felix Salmon) Only if you want to lose both.
The Closing of the Keynesian mind. "Some have asked if there aren’t conservative sites I read regularly. Well, no," Paul Krugman writes. (NYT)
Why Opposing Financial "Reform" is Pro-Consumer, Yet Again. \(Coordination Problem\). Thanks Elizabeth Warren! You killed interchange fees.
Reports of police firing on protestors in the Saudi Arabian city of Qatif evoke a possible nightmare scenario for the disruption of oil from a country that sits atop the world's largest proven oil reserves.
While Saudi Arabia is not the largest oil exporter to the United States, oil is still a fungible commodity – and any supply disruption on such a massive scale would certainly send US energy costs soaring. \(The Kingdom of Saudi Arabia sits on a staggering quarter trillion barrels of oil proven in the ground.\)
The revelation that there may have been a “third man” at McKinsey with connections to the alleged insider trading schemes of Galleon founder Raj Rajaratnam casts a shadow across the reputation of the famous consulting firm. How deep does the corruption run?
Ray Dalio's fund slumped in August and some investors blame the strategy of such funds for the volatility that slammed stocks and commodities.
For all the talk about the 250,000 jobs a month the economy is creating, workers' real wages are going backward.
Volatility could probably last anywhere from three to four months, Brian Jacobsen of Wells Fargo said.