This is how beggar-thy-neighbor monetary policies work, and perhaps why they ultimately fail.» Read More
A few years ago, I spent the long weekend over MLK studiously avoiding doing either the conservative thing—celebrating our country’s dedication to equality and color-blindness—or the progressive thing—celebrating the accomplishments of African Americans.
Instead, I read a book called "The Geography of Thought: How Asians and Westerners Think Differently … and Why. "
Psychologist Richard E. Nisbett started out as a universalist concerning the nature of human thought, convinced that all populations perceive and reason in the same way. Apparently, this is \(or was\) a very common assumption among psychologists. Prompted by a Chinese student, however, Nisbett began to read more broadly and discovered evidence that Westerners and East Asians have maintained very different systems of thought for thousands of years.
I'd like to keep this short—because I've tried very hard not to write about it at all. But the story just won't die.
Ten days ago, a Yale Law school professor named Amy Chua wrote an essay in the Wall Street Journal called "Why Chinese Mothers Are Superior ". If you've missed the debate, I'll provide a thumbnail sketch.
As more and more states go deeper in the red, the possibility of "health care rationing" becomes more and more probable. Arizona recently decided to halt Medicaid reimbursements for organ transplants, for example.
I've talked to some of my contacts in DC and they say health care rationing could be the next big thing in today's tumultuous fiscal reality. I decided to speak with Amanda Glassman, Director of Global Health at the Center for Global Development, to find out more about about this phenomenon.
Goldman Profit Beats, but Profits Drop Sharply from Previous Quarter [CNBC] "Goldman Sachs reported a fourth-quarter profit that edged past Wall Street expectations Wednesday, but its quarterly revenue came in below forecasts as investment banking and client services revenue slipped. For the three months ended December, Goldman reported a profit of $3.79 a share, down from $8.20 a share in the same quarter a year ago. Revenue fell to $8.64 billion from $9.62 billion in the year-ago period."
Wells Fargo Reports in Line Earnings [CNBC] "Wells Fargo posted earnings that matched expectations Wednesday, though the bank topped Wall Street's expectations on revenue. The banking giant reported fourth-quarter earnings of 61 cents a share. Wells Fargo earned 8 cents a share during the same period a year earlier. Sales for the most recent quarter rose to $21.49 billion, up from $22.70 billion last year."
"AIG Names 4 Banks as Lead Underwriters for Re-IPO" [CNBC] CNBC'sKate Kelly reports: "The giant insurer American International Group has chosen four banks to be joint global coordinators of its expected secondary offering: Bank of America, Deutsche Bank, Goldman Sachs, and JPMorgan Chase, according to people familiar with the matter. "
"Why Obama May Be Wall Street's New Best Friend" [CNBC] CNBC's Jeff Cox discusses president Obama—past, present, and future: "Candidate Obama was an anti-tax cut, pro-regulation, anti-big business populist ready to take on Wall Street and any fat-cat CEO who stood in his way. President Obama? A bit of a different story."
Citi Posts First Post Bail-Out Profit—Still Misses Estimates [DealBook—New York Times] "Citigroup announced quarterly profits of $1.3 billion on Tuesday, bringing its 2010 earnings to $10.6 billion, as the bank saw fewer losses on troubled loans. This is the first time Citigroup has posted a full-year profit since Vikram S. Pandit was named chief executive in 2007. Citigroup reported a loss of $1.6 billion in 2009, on top of a crippling $18 billion loss the year before. The bank has now turned a profit for four consecutive quarters."
If Goldman Sachs were not the source of the leaks about its deal with Facebook, would it have been forced to withdraw the offering from US clients anyway?
At approximately 2 PM today Blackstone Group—one of the largest private equity investment firms in the world—officially joined the Twitterverse by sending out its first tweet.
Changing federal bankruptcy law to allow individual states to file is an idea that appears to be gathering momentum—and opposition.
Under current US bankruptcy laws, the states are prevented from filing for bankruptcy—as municipalities now are permitted to do in about half the states. But the rhetoric is heating up, according to an article in the LA Times , in the weeks since my colleague Nicole Lapin reported on the topic .
Barack Obama’s editorial in the Wall Street Journal is sure to land him in hot water with the left and perhaps win him a few supporters on the right.
In case you missed the news, the president put his byline over a Wall Street Journal op-ed saying that he will sign an executive order to ensure that federal regulations strike a balance between protecting safety, health and the environment, on the one hand, and economic prosperity, on the other.
Apple is down around 3 percent to 4 percent today on the news of a health-related leave of absence for Steve Jobs. There has been much discussion in the media and among analysts about the "Steve Jobs Premium" and what his day-to-day presence is truly worth in terms of market cap and shareholder value.
This is how beggar-thy-neighbor monetary policies work, and perhaps why they ultimately fail.
UBS has reacted to the financial market turbulence by freezing salaries for its investment bankers until at least mid year. The FT reports.
Janet Yellen is expected to attempt to balance raising interest rates against the risks of a weaker global economy.