Bloomberg.com – Goldman Sachs, JPMorgan Among Banks Probed by EU Over CDS Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM) and 14 other investment banks face a European Union antitrust probe into credit-default swaps for companies and sovereign debt. The European Commission said today it opened two antitrust probes. It will check whether… Continue reading CDS Cheating?
Barron’s – Tom Sullivan: Is Inflation Tamed or Inflamed? Although there doesn’t seem to be lots of worry about inflation at the Fed or in the bond markets, the ratings agencies are not so blasé about the high levels of U.S. debt Or to the Federal Reserve, for that matter, as Fed Chairman Ben Bernanke… Continue reading Inflation
The New York Times – Editorial: The Economy Slows It has long been clear that economists do not see the world the way people experience it. That disconnect is especially pronounced now. The economy lost steam in the first quarter. Growth in personal consumption — the single largest component of the economy — slowed markedly.… Continue reading The Economy
The New York Times – Floyd Norris: A Reversal for Real Estate After Some Mild Gains PRICES for both homes and commercial real estate are falling again. Meaningful improvement may have to wait until there are many fewer distressed properties for sale. Indexes of the two markets showed this week that the latest declines had… Continue reading Struggling Real Estate
Reuters – True Finns still oppose Portugal bailout, stability fund Finland’s eurosceptic True Finns party said on Monday it was sticking to its pre-election stance that it cannot support Portugal’s bailout package. “We cannot with good conscience support Portugal’s package nor the creation of permanent bailout mechanism. Neither do we approve the hike of Finland’s… Continue reading Is Portugal’s Third Bailout On Hold?
The Wall Street Journal – Commodity Surprise: Some Are Now Heading Down The months-long rally in commodity prices has sparked fears it could ignite inflation or cripple consumer spending. But a surprising trend is now sweeping the markets for some key materials: Prices are falling. Goods from cotton to zinc that were highfliers late last… Continue reading A Commodity Bear Market?
Bloomberg.com – U.S. Prosecutors Probe High-Frequency, Algorithmic Trades U.S. prosecutors have joined regulators’ investigation into whether some high-speed traders are manipulating markets by posting and immediately canceling waves of rapid-fire orders, two officials said. Justice Department investigators are “working closely” with the Securities and Exchange Commission to review practices “that are potentially manipulative, like quote-stuffing,”… Continue reading HFT
The New York Times – Robert J. Shiller: Needed: A Clearer Crystal Ball Some financial economists have begun to suggest the kinds of measurements of leverage and liquidity that should be collected. We need another measurement revolution like that of G.D.P. or flow-of-funds accounting. For example, Markus Brunnermeier of Princeton, Gary Gorton of Yale and… Continue reading Defending Economists
The New York Times – Joe Nocera: The Party’s Over for Buffett This year, though, the tone is likely to be more somber, thanks to l’affaire Sokol, which has seriously dented Buffett’s pristine image. For someone who has said repeatedly that he would rather lose money than even a shred of reputation, his actions have… Continue reading Buffett Defends Himself
MarketBeat (WSJ Blog) – PIMCO to Launch Total Return ETF Managed by Gross Bill Gross is the world’s largest bond fund manager. Now, he may be about to become one of the most transparent. Today, PIMCO filed a registration statement to list an exchange-traded version of the massive PIMCO Total Return Fund. Unlike traditional mutual… Continue reading PIMCO Joins The Actively Managed ETF Game
The Wall Street Journal – Mark Gongloff: Inflation? Numbers Show Faith in Fed Ben Bernanke held the first postpolicy-meeting news conference by a Federal Reserve chairman in part to bolster confidence that the Fed remained committed to controlling inflation. The words “inflation expectations,” or some variation of them, were uttered 21 times in the session.… Continue reading Bernanke Said “Inflation Expectations” 21 Times