<Click on graphic for larger image> TIME Magazine – Obama’s Economic Dilemma: To Spend or Not to Spend For the moment, senior Obama advisers tend toward the doldrums theory. They foresee a long and slow recovery, one they would like to speed up with the fuel of more government stimulus to get money into the… Continue reading Cover Story: The Debate On Keynesian Economics Heats Up
Real Time Economics (WSJ Blog) – Let Inflation Run Wild? Some Say Bring It On Early in the last decade, now-retired St. Louis Federal Reserve President William Poole liked to say his preferred level of inflation was zero, properly measured. And so it was for most central bankers. While difficult to achieve in the real… Continue reading What Is The Optimal Level Of Inflation?
Bloomberg Markets – Why Pimco Likes Stocks Driving Pimco’s move into equities is Chief Executive Officer Mohamed El-Erian, who says the global economy is entering a period of fundamental transformation he calls the “new normal.” El-Erian says mounting deficits and tighter financial regulation will dampen growth in the U.S. and the euro zone for the… Continue reading Cover Story: Pimco Likes Stocks!
The Financial Times – Lex: The Baltic Dry is all wet Any financial analyst worth his or her salt will conduct a “sanity check” when presented with a number that seems like an outlier. That is certainly warranted after a rapid decline in the Baltic Dry index from above 4,000 to about 1,700 in two… Continue reading The Baltic Dry Index
MarketBeat (WSJ Blog) – Options Traders More Bullish On Goldman Options traders are getting more bullish on Goldman Sachs following its $550 million settlement with the SEC. Call volume is elevated and surpassing the volume in puts for Goldman. The activity shows investors are adding positions in $150 July calls that make money if the… Continue reading Goldman
Fortune – John Paulson puts his legend to the test It’s tough to be the king. John Paulson, current monarch of hedge funds, is having a challenging year, according to recent press reports. Bloomberg News recently reported that Paulson’s $9 billion Advantage fund was down 5.8% in the first six months of the year. His… Continue reading John Paulson
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Comment The graphic above is the result of the poll embedded in the WSJ story below. The Wall Street Journal – Law Remakes U.S. Financial Landscape Senate Passes Overhaul That Will Touch Most Americans; Bankers Gird for Fight Over Fine Print Congress approved a rewrite of rules touching every corner of finance, from ATM cards… Continue reading FinReg Passes
Bloomberg.com – Goldman Settlement `Victory’ Ushers Change to Wall Street Goldman Sachs Group Inc.’s $550 million settlement with U.S. regulators yesterday will benefit the firm by ending three months of uncertainty at an affordable price. Now the rest of Wall Street begins calculating the cost. Investors welcomed the deal with the Securities and Exchange Commission,… Continue reading Goldman Settles
Business Insider – Uh-Oh: Illinois Just Passed Iceland On The List Of Government Default Risks Yesterday’s abrupt announcement of a another massive bond offering hasn’t helped Illinois’s default probability (via Dian Chu). The Prairie State has passed Iceland on CMA’s list and is closing in on Iraq
The Economist – European banks: Don’t flunk this one The stress tests of Europe’s banks have been chaotic. But it is too soon to write them off Europe has reached a similar point. Some banks have been locked out of international borrowing markets, reflecting worries that they could be brought down by the woes of… Continue reading Stress Tests