Bloomberg.com – Netflix Up 572% Is No Deterrent to Analyst Wible’s Bearish Take Tony Wible loves streaming movies from Netflix Inc. Ask the Janney Montgomery Scott analyst what he thinks of the company’s stock, and the affection ends there. Since April 2007, first at Citigroup Inc. and now at Janney, Wible has argued shares of… Continue reading When Analysts Stick To Their Guns
Barron’s – The Case for Quantitative Easing Vincent Reinhart, of the American Enterprise Institute, argues the Federal Reserve should resume its purchases of Treasury securities to jump-start the economy. Q: Some critics of quantitative easing point to the fact that the Fed, at least in the last round, appeared to be pushing on a string.… Continue reading Differing Views On QE2
The Wall Street Journal – Fed’s Danger of Leaks With QE . Ben Bernanke has opened the door to further policy easing in the U.S. His challenge now may be to keep investors from exiting through it. In the past, the Federal Reserve’s efforts to stimulate the U.S. economy have been fairly straightforward. Lower interest… Continue reading More on QE2
The Wall Street Journal – Homeowners in Limbo Mortgage Mess Deepens Anxiety for Those Facing Foreclosure. Across the U.S., the mortgage mess is deepening the anxiety and uncertainty swirling around homeowners who are facing foreclosure. Foreclosure is already a slow process, but the decision by lenders such as Bank of America Corp. and J.P. Morgan… Continue reading Mortgage Mess
< Click on chart for larger image> The Financial Times – Lex: Municipal bond mess It is getting harder to argue that defaults in America’s $2,800bn municipal bond market will remain historical anomalies. Only an emergency cash advance from Pennsylvania kept Harrisburg, the state capital, from default and now Jefferson County, Alabama may file for… Continue reading Munis
The New York Times – Floyd Norris: World Trade, Once Rising, Is Starting to Sag Again THE rapid recovery in world trade after the financial crisis appears to have slowed this spring and summer, raising new concerns about the global economy. Exports of many countries have stabilized at levels well under the peaks reached before… Continue reading World Trade
The Financial Times – Federal Reserve urged to act on economy A senior member of the Federal Reserve has warned that the US economy is in a “liquidity trap” and signalled support for more action to boost the recovery. Charles Evans, president of the Chicago Fed, said that “in my opinion, much more policy accommodation… Continue reading Liquidity Trap
The Wall Street Journal – Cloudy Skies for Emerging Markets The Federal Reserve’s latest effort to juice the U.S. economy is making many investors in emerging-market and commodity-producing nations confident the rally has longer to run. Others see trouble ahead, concerned too many investors are jumping into the rally and that these markets can’t keep… Continue reading Emerging Markets
Barron’s – Gene Epstein: Priced Out at the Fed With two sets of September numbers to choose from, Bernanke looks at the wrong ones Speaking at a conference Friday morning hosted by the Boston Federal Reserve, the Fed chairman disappointed hopes that he would clarify his plan to initiate a new round of quantitative easing,… Continue reading Inflation Is Not The Problem
The Financial Times – Mark Williams: Few silver linings when gold bubble bursts Beware of bubbles. Tulips, the dotcom boom and pre-credit crunch real estate have a lot in common; they are assets that were in vogue, became overbought and eventually fell to earth. And now it’s gold. Historically, two-thirds of gold demand comes from… Continue reading The Gold Bubble
The New York Times – Banks Shared Clients’ Profits, but Not Losses JPMorgan Chase & Company has a proposition for the mutual funds and pension funds that oversee many Americans’ savings: Heads, we win together. Tails, you lose — alone. Here is the deal: Funds lend some of their stocks and bonds to Wall Street,… Continue reading U.S. Banks