The Wall Street Journal – Paulson Still a Bull After His Bare Year Mr. Paulson, the most celebrated hedge-fund manager in recent years, is going through the worst period of his career. His two Advantage funds, the largest in his stable, tumbled 23% and 33% in 2011 through August. Many pension plans and other institutions… Continue reading John Paulson Is Still Bullish
Bloombeg.com – Gold Still Looks Good; Japan Still Doesn’t The editor of Grant’s Interest Rate Observer on gold, gold stocks, the gold standard and why he’s stopped investing in Japan. When Jim Grant left Barron’s in 1983, after inaugurating the Current Yield column, bonds already had ended their long bear market and begun the great… Continue reading Jim Grant Discusses Gold
Reuters.com – Obama to propose “Buffett tax” on millionaires President Barack Obama, in a populist gesture designed to appeal to voters, will propose a “Buffett Tax” on people making more than $1 million a year as part of his deficit recommendations to Congress on Monday. Such a proposal, among suggestions to a congressional Super Committee… Continue reading A New “Buffett Tax” On Millionaires?
The Financial Times – Fears over exemptions to Volcker rule The draft also leaves open the question of whether there should be a “central data repository” to collect and analyse bank trades, which the rule’s advocates say is crucial to its enforcement but which banks are concerned could lead to leaks of sensitive information. The… Continue reading The Volcker Rule
Reuters.com – No new China stimulus – former deputy central banker China should refrain from boosting credit and fiscal spending again as stimulus measures to avoid fueling inflation and pushing up government debt, Wu Xiaoling, a former deputy central bank governor said in remarks published on Monday. “Currently, China’s economy faces inflationary pressures as well… Continue reading Chinese Monetary Policy
Bloomberg.com – Dealers Add Treasuries in Biggest Buying Spree Since ‘07 The 20 primary dealers held $15.1 billion of Treasury securities due in more than one year as of Sept. 7, up from a $75 billion bet against the debt on May 6, Fed data show. The last time dealers bought bonds at such a… Continue reading U.S. Treasuries
None Today
The Economist – The proper diagnosis: Profligacy is not the problem Solving the euro-zone mess means understanding the nature of its ills. And by insisting it is just about budget deficits, too many Europeans show they don’t MISDIAGNOSIS is not, in itself, malpractice. Everyone, be they doctors or central bankers or politicians, makes mistakes. But… Continue reading Eurobonds Are A Very Bad Idea!
<Click on graphic for larger image> The Economist – Europe’s currency crisis: How to save the euro It requires urgent action on a huge scale. Unless Germany rises to the challenge, disaster looms SO GRAVE, so menacing, so unstoppable has the euro crisis become that even rescue talk only fuels ever-rising panic. Investors have sniffed… Continue reading More On The Euro
Bloomberg.com – Greece Wedded to Euro as Treaties Provide No Way to Opt Out “Everything must be done to keep the euro zone together.” That was Chancellor Angela Merkel speaking on German radio on Sept. 13 as she denied reports that Germany was preparing for Greece’s exit from the monetary union. That the leader of… Continue reading No One Is Leaving The Euro
Comment We agree with the sentiment expressed below. Rogue traders do not exist. They are a sign of a poorly run organization and management should be held as responsible as the trader. Rolling Stone – Matt Taibbi: The $2 Billion UBS Incident: ‘Rogue Trader’ My Ass They’re not “rogue” for the simple reason that making… Continue reading There Are No Rogue Traders In 2011, Only Poor Management Controls
The Wall Street Journal – Trump’s New Gold Standard Instead of Cash, a Tenant Makes Deposit in Bullion; Tough on the Wallet On Thursday, the newest tenant in Donald Trump’s 40 Wall Street, a 70-story skyscraper in Manhattan’s Financial District, will hand Mr. Trump a security deposit worth about $176,000. No money will change hands—just… Continue reading Trump Takes Gold