The Wall Street Journal – A Political Solution for the Euro? Markets rebounded Monday on reports that the 17 euro-zone nations are negotiating a plan to impose greater fiscal discipline on deeply indebted states. The partial recovery from last week’s market swoon was a recognition that German Chancellor Angela Merkel is right to define Europe’s… Continue reading Germany Is Calling The Shots
Bloomberg Businessweek.com – How Paulson Gave Hedge Funds Advance Word of Fannie Rescue Treasury Secretary Henry Paulson stepped off the elevator into the Third Avenue offices of hedge fund Eton Park Capital Management LP in Manhattan. It was July 21, 2008, and market fears were mounting. Four months earlier, Bear Stearns Cos. had sold itself… Continue reading Hank Paulson Helped Hedge Funds
The Wall Street Journal – MF’s Money Trail Zigzags On Oct. 31, the same day the New York firm filed for Chapter 11 bankruptcy-court protection, MF Global shifted $220 million in money it claimed as its own from reserve accounts in its broker-dealer unit to customer accounts in its futures merchant operation, according to people… Continue reading MF Global
<Click on chart for larger image> MarketWatch.com – U.S. home prices drop 0.6% in September U.S. home prices took a fall in September, according to a key index released Tuesday, ending a string of five monthly gains as the housing market continues to struggle to generate momentum. The S&P/Case-Shiller 20-city composite index fell 0.6% in… Continue reading Home Prices
CNBC.com – John Paulson Apologizes to Investors for ‘Worst’ Year Hedge fund legend John Paulson apologized to investors for what he is calling a year that has been “the worst in the firm’s 17 year history.” “We are disappointed and apologize,” the Paulson Funds said in a letter to investors obtained by CNBC. Paulson’s funds… Continue reading John Paulson Apologizes
The Big Picture – Flow Chart For The EFSF Here is our best attempt at a flow chart for the EFSF that tries to capture everything it does. If it looks complicated, that is because it is complicated.
The Onion – U.S. Adds 4 Million Jobs But In St. Louis The Labor Department reported Monday that the U.S. economy created a staggering 4 million jobs in October, though government officials hastened to add that the new positions are all located in the St. Louis metropolitan area. “New employment opportunities are emerging in the… Continue reading A Satirical Take On The Jobs Situation
MarketBeat (WSJ Blog) – ECB’s Official Computer Game Ignores Debt Crisis If the European Central Bank’s official monetary policy game is any indication of the bank’s perception of its role in the ongoing debt crisis, don’t expect it to be riding to the rescue anytime soon. Economia, found on the ECB’s website and available as… Continue reading This ECB Computer Game Tells You Everything You Need To Know
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The Wall Street Journal – European Nations Pressure Own Banks for Loans Some European nations, struggling to find buyers for their bonds, are pressuring their own already-stressed banks to fill the gap by acting as lenders of last resort—in certain cases, pushing the amount of risky European debt on those institutions’ books even higher. Italy… Continue reading EU Banks Are Pressured To Lend
The Wall Street Journal – Time to Think the Unthinkable on the Euro The short answer is that planning relies on a large amount of guesswork, given the extreme uncertainties and potential outcomes. A breakup can cover anything from the exit of one country to a complete dissolution and return to national currencies. Much also… Continue reading Is This The End Of The Euro?
<Click on chart for larger image> The Financial Times – Nouriel Roubini: Italy’s debt must be restructured It is increasingly clear that Italy’s public debt is unsustainable and needs an orderly restructuring to avert a disorderly default. The eurozone’s wish to exclude private sector involvement from the design of the new European Stability Mechanism is… Continue reading Italy