Slate.com – Arguing About Money What is a currency war, and how do you win one? But what is a currency war, and is the United States in one? If so, how will we know who won? A “currency war” is just a headline writer’s term for what economists describe as “competitive devaluation.” It’s helpful,… Continue reading Currency Wars
The New York Times – Treasury Hid A.I.G. Loss, Report Says The United States Treasury concealed $40 billion in likely taxpayer losses on the bailout of the American International Group earlier this month, when it abandoned its usual method for valuing investments, according to a report by the special inspector general for the Troubled Asset… Continue reading AIG
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Bloomberg Businessweek – Tom Keene: Blinder Says Fed ‘Making It Up’ With New Stimulus Federal Reserve policy makers are improvising as they debate embarking on a second round of unconventional monetary stimulus, said Alan Blinder, former vice chairman of the U.S. central bank. “They are making it up as they go along,” Blinder, a Princeton… Continue reading Is QE2 A Good Idea?
The Wall Street Journal – Jon Hilsenrath: Why the Fed Wants a Tad More Inflation Here’s what they are trying to do, and the risks they are taking: Fed officials generally believe that 2% is a good, not-too-hot, not-too-cold annual rate of inflation. Through the first eight months of the year, it has instead been… Continue reading Where Is The Deflation – 2?
ZeroHedge (blog) – Goldman: The Fed Needs To Print $4 Trillion In New Money Our starting point is Chairman Bernanke?s speech on October 15, which defined the dual mandate as an inflation rate of “two percent or a bit below” and unemployment equal to the committee?s estimate of the long-term sustainable rate. The Fed?’s job… Continue reading Goldman Thinks The Federal Reserve Should Do $4 Trillion In QE2
The Wall Street Journal – October is Shaping Up as an ‘IPOpalooza’ Another half-dozen IPOs are due to hit the U.S. market this week in what could become the most active month for new stocks in nearly three years. With 13 initial public offerings already under its belt, this month is already tied for the… Continue reading Are IPOs Booming?
<Click on chart for larger image> The Wall Street Journal – Blizzard of California Notes, Bonds Set to Begin California next week will kick off a series of multibillion-dollar short- and long-term financings, including its second-largest note sale ever, to enable the cash-starved state to pay off creditors and borrow money for other purposes. The… Continue reading Here Comes California
CBS.com – 99 Weeks: When Unemployment Benefits Run Out The economic jam we’re in has topped even the Great Depression in one respect: never have we had a recession this deep with a recovery this flat. Unemployment has been at nine and a half percent or above for 14 months. Congress did something that it… Continue reading When Jobless Benefits Run Out, The 99ers
Bloomberg.com – Megadeals Go Missing From M&A Rebound This year’s rebound in mergers and acquisitions has one conspicuously large absence: the megadeal. Announced takeovers of more than $25 billion are set to make up the smallest percentage of total deal volume in any year since 2002, according to data compiled by Bloomberg. BHP Billiton Ltd.’s… Continue reading M&A
Bloomberg.com – Treasury Gets 36% Return Buying Toxic Mortgages A U.S. government program aimed at reviving the mortgage-backed securities market returned more than triple what stocks or bonds gained in the past year. The eight funds created under the Public-Private Investment Program, or PPIP, reported net internal rates of return averaging 36 percent through Sept.… Continue reading The Treasury Makes Another Claim Of Profitability
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