Forbes – No Perfect Refuge If Inflation Surges The Fed’s low-interest-rate policy could lead to an inflationary surge. That would pummel bonds and, if history is a guide, stocks would not prove very effective as a hedge. For retirees, the challenge is to maintain both current income and a chance to reinvest principal at higher… Continue reading Inflation
The Financial Times – Anti-austerity protests sweep Europe Workers across Europe downed tools and staged protests in one of the biggest shows of opposition to austerity policies that trade unions blame for falling living standards across the continent. As a fresh batch of dire economic data highlighted Europe’s failure to throw off its troubles, trade… Continue reading Anti-Austerity Protests In Europe And Greece
The Wall Street Journal – Fed Leans Toward Clearer Guidance The Federal Reserve is inching closer to revamping its communication strategy by stating more explicitly than before what would get officials to start raising short-term interest rates. Under a new approach being considered by senior officials, the Fed would state how high inflation would have… Continue reading A More Transparent Federal Reserve
Bloomberg.com – Geithner’s Money Fund Overhaul Push Sparks New Opposition U.S. Treasury Secretary Timothy Geithner yesterday urged the Securities and Exchange Commission to pursue new rules for money-market mutual funds, triggering fresh opposition from industry leaders who had beaten back similar proposals and are pursuing a weaker overhaul. Geithner, heading a Washington meeting of the… Continue reading Money Market Fund Regulation
The Wall Street Journal – Euro Crisis Weighs on Germany’s Economy Economic expectations in Germany fell well below consensus forecasts in November, the latest sign that the euro zone’s largest economy is likely to deteriorate over the next six months as the currency bloc’s debt crisis drags on, data showed Tuesday. The Center for European… Continue reading Germany
The Telegraph – US to overtake Saudi Arabia in oil as China’s water runs dry It is official. The US will overtake Saudi Arabia to become the world’s top oil producer by 2017. The International Energy Agency (IEA) said in its world outlook for 2012 this morning that the US will be a net exporter… Continue reading Oil Production
<Click on chart for larger image> MarketBeat (WSJ Blog) – Morning MarketBeat: Why No Fear? Investors aren’t bearish enough to think the worst of the recent pullback is over. The S&P 500 is down about 6% from mid-September as concerns over the looming fiscal cliff have taken center stage. But by one measure, there still… Continue reading No Fear In This Market
The Wall Street Journal – Lenders at Odds Over Greek Debt Differences among Greece’s official lenders about how to reduce the country’s debt to manageable levels spilled into the open late Monday, as the head of the International Monetary Fund emphasized she opposed euro-zone efforts to avoid making significant debt concessions to Greece. The public… Continue reading Greece Kicks The Can
Bloomberg.com – My Top Five Choices for a New Treasury Secretary President Barack Obama needs a new Treasury secretary. Timothy Geithner has made clear that he intends to leave. Furthermore, it is time to bring some fresh thinking to two vital issues: fiscal policy and financial-sector oversight…I have five suggestions, none of whom would be… Continue reading Who Will Eventually Replace Geithner?
The Financial Times – Glitch stops NYSE trading in 216 companies The New York Stock Exchange suspended trading in 216 companies, including US Steel and Travelers, for most of the trading day on Monday in the latest technology glitch to hit Wall Street. Despite the suspensions, investors were able to continue to trade shares in… Continue reading When Computers Rule The World