The Washington Post – Barry Ritholtz: The systemic risk revealed by MF Global’s collapse The MF Global story contains six elements that I found astonishing: 1. What MF Global did with client monies was “technically” legal (though it probably violated the spirit of the law). 2. Britain’s leverage loopholes provided a back door for U.S.… Continue reading MF Global, “Bad Rules” or “Broke The Rules”?
Barron’s – Gene Epstein: Why Has the Recovery Been So Slow? The pace of post-recession recovery is the slowest the U.S. has seen in more than 40 years, and the housing crisis alone doesn’t explain why Begin with a detailed score card. The recovery from the 2008-09 recession has been the slowest since any recession… Continue reading The Slow Economic Recovery
Bloomberg.com – Selection Bias in the Consumer Price Index?: The Ticker When energy prices boost headline inflation in any given month, the commentary focuses on the usually tame core to support the conclusion that there is no inflation. When energy prices depress the CPI, somehow the focus shifts to the headline CPI — once again… Continue reading Inflation
Comment In the last few day the odds of Gingrich winning the Republican nomination have collapsed according to Intrade.com. Romney is now the overwhelming favorite at 69.6%. Typically the betting markets lead the polls and commentary. Last week the commentary was about how Gingrich could win. Look for this to change in the days ahead… Continue reading Is The Gingrich Boomlet Over?
Bloomberg.com – China’s November Home Prices Post Worst Performance This Year Amid Curbs China’s home prices posted their worst performance this year with more than half of the 70 biggest cities monitored in November recording declines after the government reiterated plans to maintain property curbs. New home prices dropped from the previous month in 49… Continue reading Chinese Home Prices Continue To Fall
Bloomberg.com – China Local Debts Dwarf Official Data Prompting Too-Big-to-Complete Alarms Bloomberg News tallied the debt disclosed by all 231 local government financing companies that sold bonds, notes or commercial paper through Dec. 10 this year. The total amounted to 3.96 trillion yuan ($622 billion), mostly in bank loans, more than the current size of… Continue reading More On China
CBS News – 60 Minutes: There Goes the Neighborhood Across America, recession-fueled foreclosures and plummeting home values have left countless properties abandoned and vulnerable to looting. As Scott Pelley reports, the problem has gotten so bad in Cleveland, Ohio, that county officials have demolished more than 1,000 homes this year – and plan to demolish… Continue reading Should You Walk Away?
Barron’s – Still Banking on Treasuries Van Hoisington of Texas-based Hoisington Investment Management believes the economy is heading for another recession—and that means the bull market in bonds isn’t going anywhere Van Hoisington, President and Chief Investment Officer of Austin, Texas-based Hoisington Investment Management, cut his teeth in the bond bear market of 1978 to… Continue reading Van Hoisington Speaks
CBS News – 60 Minutes: Growing up Buffett It might seem surprising that Warren Buffett, the billionaire founder of Berkshire Hathaway, wants his son Howard to succeed him as chairman of the company. After all, Howard is a farmer with no college degree. But when you hear about the values instilled by Warren and his… Continue reading Growing Up Buffett
None Today
The Financial Times – EFSF considers euro warning clause A draft prospectus prepared for the latest eurozone bail-out instruments includes explicit warnings to investors that the euro could break apart or even cease to be a “lawful currency” entirely. The European Financial Stability Facility, which is creating the products to insure bonds of troubled countries… Continue reading The EFSF Warns
The Economist – The euro crisis: Damned with faint plans Euro-zone government bonds have not been made safe—and the euro project remains in peril THERE were hopes, however faint, that Europe’s leaders might, in the space of a few days, manage to persuade investors that euro-area government bonds were safe assets, not toxic waste, thus… Continue reading Euro Crisis Scary Talk