"Go long agriculture and water and go to the beach," says BlackRock CEO Larry Fink, "put those investments in the bottom drawer for 10 years." Noting Israel's recent gas discovery, Fink believes energy will be less profitable. "They're finding lots of ways to find new energy." PHO +0.9%. [View news story]
If water really gets scarce, I presume that governments will nationalize whatever private holdings there are.
The Financial Crisis Inquiry Commission releases its official report on the causes of the financial crisis blaming Wall Street excesses and regulatory failures, but the group split along party lines and produced two dissenting reports (I, II). A disappointed Yves Smith says all help perpetuate the "myth" that Wall Street was as much a victim of the crisis as anyone else. [View news story]
Perhaps the "myth" is that there is a unified monolith called "Wall Street." Commercial banks, investment banks, hedge funds, money managers etc., are not of a kind. Certain segments of the financial sectors perhaps were victims, others were perpetrators. Quite possibly sometimes one might find both victims and perpetrators within the same firm.
It's time for the SEC to weigh in on policies regarding CEO illnesses, Daniel Indiviglio argues, using the fictional example of "Stephanie Werks" at tech company "Pear." Apple (AAPL) is beginning to show how much a leader's health means to the market, but how to balance need-to-know with privacy? [View news story]
And it's not just that he's any old public figure. If we are to believe the obsequious journalists that write about Apple, Jobs is personally responsible for most, if not all, the company's success.
The SEC approves new regulations aimed at curbing the risks of asset-backed securities. One rule taking effect early next year will require banks and financial firms that issue asset-backed securities to review the quality of the underlying assets, which includes mortgages, credit card debt and student loans; the banks would then have to disclose their findings to investors. [View news story]
The headline should have read: SEC's pig in a poke; Current prospectus rules apparently do not require the issuer of asset backed securities to verify the underlying assets. Isn't that one of the things a prospectus is supposed to do? Or do ABS not have a prospectus?
Wall Street banks are bailing out of Treasurys in search of higher-yielding assets, slashing holdings to a net $2.34B from November's $81.3B. Says BTG Pactual's John Fath: "There are people moving or thinking of moving out of risk-free assets. This is what Bernanke wanted." [View news story]
How about a simpler explanation? There are people moving out of a low-yielding asset that is declining in value. Simulatneously, the cost of borrowing to the U.S. is going up; presumably that is not what Bernanke wanted.
Some have argued that the run-up in interest rates is evidence that QE isn't working, but FOMC officials noted a number of reasons for the increase: stronger growth prospects, year-end positioning by the markets, the tax-cut package, and the Fed's smaller-than-expected program. The members made clear that changes are unlikely. [View news story]
If rates rise because the bond buying program was smaller than expected, what does that say about what will happen to yields when the program actually ends?
After 18 months of hearings and debates, the Financial Crisis Inquiry Commission appears to have ended with a hung jury. Republican members release a document that mostly blames government housing policies for the origins of the financial crisis; Democrats continue to cite Wall Street risk-taking. [View news story]
This Commission never had the prestige or clout that it, and the American people, deserved; no further evidence is necessary than the fact that Congress went ahead with the Dodd-Frank legislation without waiting for the commission's recommendations. Frank, et. al., set up this commission with the intent of making it largely irrelevant.
Computer prices are rising even as the prices of other consumer electronics such as high-def TVs and digital cameras plunge this holiday season. Higher-end models are "flying off the shelves" as customers recognize that "if they want a level of performance and graphics, they probably aren't going to get that for $299." [View news story]
Internet advertising, pop-ups etc. that create conflicts with existing software, or otherwise slow-down the PC are one reason that consumers have been forced to upgrade "performance and graphics."
Nevada and Florida are near the top of the list of best business-tax climates in the country. They're also among the tops in unemployment; what are they doing wrong? [View news story]
Another factor: I'm guessing that both Florida and Nevada are more dependent on tourism than the average state and tourism has presumably been impacted by our current recession/depression.
Aug. Nonfarm Payrolls:-54K vs. consensus of -110K, -54K (revised from -131K) in July. Unemployment 9.6% in-line with expected. Avg. hourly earnings +$0.06. to $22.66. Workweek remains same at 34.2. [View news story]
Thanks for the answer. I remembered that further clarification could be gotten from the employment diffusion index, but I can't seem to figure out where to find it. Do you happen to know if it is published monthly?
Aug. Nonfarm Payrolls:-54K vs. consensus of -110K, -54K (revised from -131K) in July. Unemployment 9.6% in-line with expected. Avg. hourly earnings +$0.06. to $22.66. Workweek remains same at 34.2. [View news story]
Wall Street is bracing for a surge in whistleblower allegations, as new incentives in the financial reform law could net informants multi-million dollar payouts. The SEC says "the scale of the awards reflects the high quality of whistleblower we hope to get," but Wall St. expects a jump in rogue tip-offs. [View news story]
Great! So now the American taxpayer will shell out more money to discover the malfeasance just so the feckless, toothless SEC will agree to negotiated settlements with the big investment bank/broker dealers, in which "punishment" will be that the IB/BD's promise (once again) not to violate the rules in the future.
Funny, I thought his comment about " undesirable boom-bust cycles that ultimately lead to both a less stable economy and higher inflation" were referring to our recent and current experience, not about some hypothetical situation.
The outlook for the upcoming earnings season: robust earnings and revenue growth. S&P 500 firms are expected to report 37% earnings growth year-over-year, far better than the 7%-8% historical average, and 10% revenue growth. It should all spell good news for stocks - except the gains may be priced in. [View news story]
If you would elaborate a little on that ratio, its significance, and why it might be so far below the 60-year average, I'd appreciate it.
"Go long agriculture and water and go to the beach," says BlackRock CEO Larry Fink, "put those investments in the bottom drawer for 10 years." Noting Israel's recent gas discovery, Fink believes energy will be less profitable. "They're finding lots of ways to find new energy." PHO +0.9%. [View news story]
The Financial Crisis Inquiry Commission releases its official report on the causes of the financial crisis blaming Wall Street excesses and regulatory failures, but the group split along party lines and produced two dissenting reports (I, II). A disappointed Yves Smith says all help perpetuate the "myth" that Wall Street was as much a victim of the crisis as anyone else. [View news story]
It's time for the SEC to weigh in on policies regarding CEO illnesses, Daniel Indiviglio argues, using the fictional example of "Stephanie Werks" at tech company "Pear." Apple (AAPL) is beginning to show how much a leader's health means to the market, but how to balance need-to-know with privacy? [View news story]
The SEC approves new regulations aimed at curbing the risks of asset-backed securities. One rule taking effect early next year will require banks and financial firms that issue asset-backed securities to review the quality of the underlying assets, which includes mortgages, credit card debt and student loans; the banks would then have to disclose their findings to investors. [View news story]
Wall Street banks are bailing out of Treasurys in search of higher-yielding assets, slashing holdings to a net $2.34B from November's $81.3B. Says BTG Pactual's John Fath: "There are people moving or thinking of moving out of risk-free assets. This is what Bernanke wanted." [View news story]
Some have argued that the run-up in interest rates is evidence that QE isn't working, but FOMC officials noted a number of reasons for the increase: stronger growth prospects, year-end positioning by the markets, the tax-cut package, and the Fed's smaller-than-expected program. The members made clear that changes are unlikely. [View news story]
After 18 months of hearings and debates, the Financial Crisis Inquiry Commission appears to have ended with a hung jury. Republican members release a document that mostly blames government housing policies for the origins of the financial crisis; Democrats continue to cite Wall Street risk-taking. [View news story]
Computer prices are rising even as the prices of other consumer electronics such as high-def TVs and digital cameras plunge this holiday season. Higher-end models are "flying off the shelves" as customers recognize that "if they want a level of performance and graphics, they probably aren't going to get that for $299." [View news story]
Deflation is "a huge danger" for the U.S., President Obama said at a post-G20 press conference this morning. Obama insisted the Fed's recent decision to resume QE was not designed to weaken the dollar, but rather to "grow the economy." Protestations notwithstanding, observers say the Fed is no longer seen by central bankers as independent. [View news story]
Nevada and Florida are near the top of the list of best business-tax climates in the country. They're also among the tops in unemployment; what are they doing wrong? [View news story]
Aug. Nonfarm Payrolls: -54K vs. consensus of -110K, -54K (revised from -131K) in July. Unemployment 9.6% in-line with expected. Avg. hourly earnings +$0.06. to $22.66. Workweek remains same at 34.2. [View news story]
Aug. Nonfarm Payrolls: -54K vs. consensus of -110K, -54K (revised from -131K) in July. Unemployment 9.6% in-line with expected. Avg. hourly earnings +$0.06. to $22.66. Workweek remains same at 34.2. [View news story]
Wall Street is bracing for a surge in whistleblower allegations, as new incentives in the financial reform law could net informants multi-million dollar payouts. The SEC says "the scale of the awards reflects the high quality of whistleblower we hope to get," but Wall St. expects a jump in rogue tip-offs. [View news story]
Speaking at a conference in Tokyo, Bernanke once again argues the importance of Fed independence. Political meddling "in monetary policy can generate undesirable boom-bust cycles that ultimately lead to both a less stable economy and higher inflation." [View news story]
The outlook for the upcoming earnings season: robust earnings and revenue growth. S&P 500 firms are expected to report 37% earnings growth year-over-year, far better than the 7%-8% historical average, and 10% revenue growth. It should all spell good news for stocks - except the gains may be priced in. [View news story]