The Economist – Buttonwood: Paying the price Time to reassess how fund managers are rewarded FUND managers have been some of the biggest beneficiaries of the financial sector’s growth over the past 30 years. Bankers may routinely earn million-pound bonuses but some hedge-fund and private-equity managers have become billionaires. Seldom has so much been earned… Continue reading How To Pay Fund Managers
The Financial Times – BIS gold swaps mystery is unravelled Three big banks – HSBC, Société Générale and BNP Paribas – were among more than 10 based in Europe that swapped gold with the Bank for International Settlements in a series of unusual deals that caused confusion in the gold market and left traders scratching… Continue reading Gold Swaps Exposed
Bloomberg.com – Top Hedge Funds That Dodged Crash, Rode Market Back Turn Gloomy Shawn Bergerson, founder of Waterstone Capital Management LP, made money when most hedge funds didn’t: in 2007 and 2008, as the housing-market collapse turned into a global financial rout, and in the recovery that has followed. Bergerson said he bet against convertible… Continue reading Hedge Funds Worry About The Stock Market
The Washington Post – Hank Paulson: Housing policy must be set on sustainable basis The financial reform bill enacted last week is a significant step toward a much-needed modernization of our regulatory structure. It will provide tools to help mitigate and manage the next financial crisis. But the job remains unfinished until Congress addresses the… Continue reading Hank Paulson, Remember Him?
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Comment Jim Bianco was on CNBC yesterday discussing the Beige Book. To view the interview click on the picture above. To view any of our recent interviews click here. The Wall Street Journal – Beige Book: Activity Rose Just Modestly U.S. economic activity rose only modestly in June and the first half of July, the… Continue reading The Beige Book
Bloomberg.com – Yellen, Diamond, Raskin Win Senate Panel’s Support to Become Fed Governors The U.S. Senate Banking Committee backed the nomination of three candidates for the Federal Reserve Board, including San Francisco Fed President Janet Yellen for vice chairman. The panel’s decisions advanced the three a step closer to a vote by the full Senate… Continue reading Federal Reserve Governors That Know Nothing About Monetary Policy Get Approved
The Financial Times – US muni bond yields approach record lows Yields on top-rated, tax exempt US municipal bonds have dropped to near-record lows, allowing many local borrowers to access cheap financing in spite of their recent fiscal troubles. Following concerns over public finances in Europe, the $2,800bn market for “munis” has come into the… Continue reading Muni Yields Approach Record Lows
CNBC.com – Chance of Double-Dip US Recession is High The state of the U.S. economy is worrisome and there is a high possibility of a double-dip recession, one of the property market’s most well-known economists said Tuesday. Robert Shiller, professor of economics at Yale University and co-developer of Standard and Poor’s S&P/Case-Shiller home price indexes,… Continue reading Double Dip Recession
The Financial Times – Banks plan for loss of eurozone member Banks have started early-stage planning to deal with the potential fallout on the derivatives and bond markets of a European country being forced to leave the euro. After having received queries by some banks about the impact of such an event, the body representing… Continue reading The Eurozone
<Click on chart for larger image> The Financial Times – Eurozone sovereign debt Whatever happened to European sovereign risk? Yields on the government bonds of the weakest eurozone members have been gingerly tightening in the past few days. This is particularly true of Spain, which seems to be enjoying a mini re-rating: bond spreads along… Continue reading Why Is European CDS Tightening?
The Economist – Reinhart and Rogoff under attack CARMEN Reinhart and Ken Rogoff’s work on sovereign debt crises has been central to the recent debate on deficit reduction. Critics have admired their book, This Time is Different, for its treatment of past defaults but have concentrated their fire on a follow-up paper that claims debt-to-GDP… Continue reading Reinhart & Rogoff’s Debt Claims Are Being Questioned