Queen Elizabeth II in Surrey. Facebook Is Only Worth $18 P, FB, GRPN - TheStreet TV. Money Game. To Make Money In This Bubble-and-Bust World, You MUST Be A Contrarian (NYSEARCA:TZA, NYSEARCA:FAS, NYSEARCA:FAZ, NYSEARCA:SKF, NYSEARCA:XLF. Martin D. Weiss: I rarely recommend that you wade through a wordy speech by an economic theorist delivered to an audience of stuffy bankers. But last week’s address by PIMCO Vice President El-Erian to the St. Louis Fed is one you absolutely MUST not miss. And to save you the trouble of deciphering the economics code words, I dedicate most of this issue to the key points he makes — the same basic points that our colleague Mike Larson has been making for months.
First and foremost, four of the world’s largest central banks have gone absolutely berserk, running the money printing presses like never before in history: The Bank of Japan (BOJ) had already been printing money like crazy ever since their bubble economy burst in the early 1990s. So when the debt crisis struck in 2008, the size of their balance sheet assets, which measure the cumulative total of a central bank’s money printing operations, was already the biggest in the world: About 20% of their economy. Meanwhile … At the U.S. J.P. Bloomberg's Jonathan Weil Totally Shreds Vikram Pandit And The Davos Forum. Where Blankfein came from. In this book excerpt from MONEY AND POWER: How Goldman Sachs Came to Rule the World, author William D.
Cohan examines Lloyd Blankfein's up-from-nothing story, and finds out why Hank Paulson would've rather had no one else as Goldman Sachs's CEO. By William D. Cohan, contributor Lloyd Blankfein Lloyd Blankfein's path tothe pinnacle of finance nearly rivals for degree of difficulty that of his legendary predecessor Sidney Weinberg, who was one of eleven children of a Brooklyn bootlegger and started working at Goldman Sachs as a gofer shining spittoons, in 1907, a few years removed from elementary school.
The family lived in the Linden Houses, a complex of nineteen buildings completed in 1957 that contained 1,590 apartments and was— at the time— a predominantly white, Jewish, public housing project. Richard Kalb, who grew up with Blankfein and has remained friendly with him, said his father worked at the post office, too. Blankfein was young and knew it. At that time, J. JPMorgan Gets Best Bond Rates as Dimon Extends Maturity: Corporate Finance. JPMorgan Chase & Co. (JPM), deemed by derivatives traders to be the most creditworthy of the six biggest U.S. banks, locked in the lowest interest rate its industry has seen since 2005 on 30-year debt. The biggest U.S. bank by assets sold $1.25 billion of 5.4 percent debentures yesterday to yield 250 basis points, or 2.5 percentage points, more than similar-maturity Treasuries, according to data compiled by Bloomberg.
Goldman Sachs Group Inc., the only other U.S. -based bank to have issued 30-year debt in 2011, sold $2.5 billion of 6.25 percent bonds at a 170 basis- point spread on Jan. 21. JPMorgan is pushing out the maturities of its debt as yields on investment-grade corporate bonds due in 15 years or more approach the lowest on record while the Federal Reserve holds down interest rates to stimulate the economy. Justin Perras, a spokesman for JPMorgan, declined to comment on the sale. Lowest Coupon JPMorgan wasn’t among nine large banks including Bank of America Corp.
Average Maturity. The MF Global Investigation Has Boiled Down To Just One Question. Reuters is reporting that the Commodity Futures Trading Commission, which has been investigating MF Global following the bankruptcy and the customer funds shortfall, actually knows where the MF Global money went. CFTC Commissioner Jill Sommers, who has been in charge of the MF Global inquiry, said that they now have a record of all transactions that were made in MF Global's last days—the only question that remains to be answered is if those transfers were legal or not.
The question of legality is a contentious issue that has already been brought up before, as people explore the possible chance that there may be regulatory loopholes which allowed MF Global to do what it did (rehypothecation, anyone?). And just yesterday, when CME Group CEO Terrence Duffy said he was informed Corzine knew about a transfer of $175 million of customer funds in MF Global's last days, DealBook pointed out that the transfer may have been legal. Euro and stocks fall as sovereign debt meltdown closer to realisation « ArabianMoney. Posted on 15 December 2011 with 1 comment from readers The euro dipped below $1.30 yesterday but still has a long way to fall to its launch exchange rate of 85 cents to the dollar. But it could get there an awful lot faster than most analysts think possible. Welcome to the eurozone sovereign debt meltdown scenario which has been discussed so much over the past two years that anybody could be forgiven for believing this is some kind of hysterical fantasy rather than a fast approaching reality.
Logic of events As ArabianMoney has pointed out before those in denial are like the US stock market investors who failed to price-in the First World War until two months before it happened. It is something in human nature that sees the logic of certain big events but just cannot face up to the logical conclusion. It will be the response to that crisis that really either pulls the eurozone back from the brink or cements a descent into a very nasty depression. Run on the banks. The 'Squidding' of Goldman Sachs - NewsTrust.net. Taibbi writes: "In all seriousness, I commend these protesters and hope no harm came of those arrests.
Goldman continues to be a natural and appropriate target of protester anger and if OWS actions continue to mock the bank and make sport of them, it might help the public learn more about how these state-dependent banks operate and why they need to be reined in, if not broken up altogether. " By Matt Taibbi, Rolling Stone 13 December 11 almost shed tears of pride this morning when I read this hilarious passage in the Daily News: Earlier Monday, about 300 protesters in squid costumes surged outside the offices of Goldman Sachs investment bank shouting, "We fry calamari! " I wish someone had called me - I would have loved to have attended this "Let's Go Squidding" expedition. In all seriousness, I commend these protesters and hope no harm came of those arrests. A perfect if small case in point, courtesy of Zero Hedge. Sure enough, European bank stocks are down 3.84% today alone... The President: Dennis Kucinich on $7.77 Trillion Secret Loan by Federal Reserve.
Are Dollars Citizens? : NO QUARTER. Sen. Bernie Sanders: Money plays ‘horrendous role’ in Congress. By Eric W. DolanMonday, December 12, 2011 20:46 EDT Sen. Bernie Sanders (I-VT) slammed the U.S. Supreme Court’s controversial Citizens United ruling Monday on CNN. The decision held that corporations have the same First Amendment rights as people, and that political spending is free speech.
“By a five to four disastrous decision, the Supreme Court said that Bank of America, Exxon Mobile and other corporations are flesh and blood people entitled to First Amendment rights,” Sanders said. “What’s wrong with it is at a time when money already plays a horrendous role in terms of what goes on in Congress, what Citizens United has done is make a terrible situation worse.”
Sanders last week introduced a constitutional amendment to the U.S. “This is going to be a real blow to the American democratic process no matter who is funding it,” he added. Watch video, uploaded to YouTube, below: Photo credit: Don Shall Eric W. Eric W.
U.K. October Manufacturing Output Drops More Than Forecast on Euro Crisis. U.K. manufacturing output fell more than economists forecast in October as the intensifying euro- area debt crisis undermined demand in Britain’s biggest export market. Factory output dropped 0.7 percent from September, the biggest decline since April, the Office for National Statistics said today in London. The median forecast of 21 economists in a Bloomberg News survey was a decline of 0.3 percent. On the year, manufacturing rose 0.3 percent, the least since January 2010. Manufacturers are suffering as the sovereign debt crisis and a cooling global economy jeopardize the outlook for exports. As the risks from Europe increase, some Bank of England policy makers have said the economy will probably need more stimulus. The central bank will leave the target for bond purchases unchanged after a meeting tomorrow, according to a survey of economists.
The data “are pretty disappointing,” James Knightley, an economist at ING Bank in London, said in an e-mailed note. Energy Demand Sales Fall. LAYOFFS WATCH: Citigroup Axes 4,500 Jobs. Tim Geithner - Blackboard. Revolving-door between DOE, subsidized company. Revolving Door Newsletter: 11.11.11 - mediabistro.com Content. Revolving door still a problem in New Mexico politics. By Milan Simonich msimonich@tnmnp.com Updated: 11/13/2011 08:28:05 PM MST0 comments SANTA FE — An unpaid state legislator in New Mexico can turn into a well-paid lobbyist overnight.
Kent Cravens was the latest to make such a move, resigning from his Senate seat this fall to become a lobbyist for the New Mexico Oil & Gas Association. Cravens, a Republican from Albuquerque, broke no law or rule, but by immediately becoming a lobbyist he defied what the top elected official of his own party considers proper. Three weeks after she took office this year, Gov. Susana Martinez said: "... Martinez's spokesman, Scott Darnell, said her stand had not changed.
"It's something she will continue to fight for," Darnell said. The governor would receive support from certain Democrats if she pushed for legislation that would place restrictions on lobbying jobs for former officeholders or government employees. "We need to do it because of the perception. Sen. This was the case until recently with Sen. Sen. The Postal Service Plots Its Own Demise. Share Express mail forms and priority mailboxes sit on display at the Capitol Station, Monday, December 5, 2011, in Springfield, Illinois.
(AP Photo/Seth Perlman) There are many appropriate targets for Occupy Wall Street protests. But the OWS protesters hit a bull’s-eye when they invaded a National Press Club briefing where Postmaster General Patrick Donahoe—who likes to make like a corporate executive and refer to himself as “Chief Operating Officer of the US Postal Service”—was giving a speech about the need to close local post offices, layoff workers and, though this was unspoken, take the steps that will lead to the privatization of the one of the country’s greatest public assets. “Stop closing post offices,” chanted the activists who occupied the press club. “Don’t privatize the post office. Postmasters general do not usually become the targets of passionate opposition. And rightly so. And the destruction would come not out of necessity but to perpetuate an austerity lie. 1. 2. 3. 4.
Here's The Central Bank Conspiracy Theory That Art Cashin Just Explained On CNBC. EDIT NOTE: We published this earlier, but seeing as Art Cashin was just on CNBC talking about this, we wanted to resurface it. Why did the world's central banks coordinate to lower the cost of dollar funding last week? There were several people who speculated that it was something specific which caused them to act, rather than merely a move to address generally tight conditions. UBS floor guy Art Cashin has the latest Wall Street buzz. Says Cashin: It all comes back to US money market funds. A Possible Trigger For The “Swap Rescue” - There is a new theory circulating in Wall Street watering holes about what may have caused the Fed and other central banks to suddenly unite in cutting the cost of dollars in Europe.
The move shocked the markets and sent equity prices soaring. The move puzzled traders and pundits alike. The new thesis in the watering holes seems to tie up the loose ends. The new theory says that several U.S. money market funds have short term loans out to European banks. This Chart Shows Eurozone Downgrades Are Long Overdue. Yesterday, S&P went on a rampage and put 15 of 17 euro-zone countries on negative credit watch. However, S&P might be a little late to the game, argues Bloomberg BRIEF economist Michael McDonough. He provides the chart below and notes that the European sovereign downgrades are "long overdue. " The higher you go on the vertical axis, the lower the credit rating. The further right you go on the horizontal axis, the higher your credit default swaps are priced.
Higher CDS implies higher credit risk and should also be reflected by lower credit ratings. But if you look at the bottom of the chart where the AAA rated sovereigns are located, you'll notice that certain eurozone country CDSs are high, while maintaining high credit ratings. REPORT: S&P WILL PUT ALL 17 EUROZONE COUNTRIES ON CREDIT WATCH NEGATIVE. BREAKING: Bloomberg reports that all 17 eurozone countries will be put on downgrade watch today. S&P will allegedly release a statement on the move after the New York closing bell at 4 PM ET. Markets fell again after that news, with the Dow nearing a complete reversal of its gains this morning. While downgrades of the AAA-rated sovereigns would probably have the most impact on the way EU leaders can handle the crisis, a downgrade of multiple euro area states could still prove a major blow for the eurozone bailout plan. These announcements could change the game for EU leaders, particularly those proving reluctant to take radical steps to fix the crisis.
PREVIOUSLY: The Financial Times is reporting that Standard & Poor's ratings service will put 6 euro area sovereigns on creditwatch negative later today. The countries at risk are Germany, France, the Netherlands, Austria, Finland, and Luxembourg. Markets have moved sharply downward after this report started circulating. We've Just Witnessed A Major Turning Point In The Euro Crisis. Standard & Poor's decision to put 15 eurozone countries on downgrade watch threatens the fabric of programs that are meant to salvage the euro, in particular the European Financial Stability Facility (the euro rescue fund).
That fund has been at the heart of all plans to fix the euro to date. Now it's all but dead, and that may not be such a bad thing. With S&P threatening to cut France's rating by two notches, it's unlikely that S&P would refrain from making at least a one-notch cut to the country's sovereign rating. Moody's and Fitch have long been warning that they will follow suit. While we doubt that S&P—or any of the other ratings agencies—would actually go ahead with a ratings cut for Germany, the fact that the country is on downgrade watch is nonetheless troubling, particularly for the EFSF. All 17 eurozone states contribute to the EFSF's €440 billion ($590 billion) war chest, but its AAA rating is highly dependent upon the ratings of France and Germany.
Professor Richard D. Wolff | Economics Professor. Richard D. Wolff. Richard D. Wolff (born April 1, 1942) is an American heterodox economist, well known for his work on Marxian economics, economic methodology, and class analysis. He is Professor of Economics Emeritus, University of Massachusetts, Amherst, and currently a Visiting Professor in the Graduate Program in International Affairs of the New School University in New York. Wolff has also taught economics at Yale University, City University of New York, University of Utah, University of Paris I (Sorbonne), and The Brecht Forum in New York City. In 2010, Wolff published Capitalism Hits the Fan: The Global Economic Meltdown and What to Do About It, also released as a DVD.
He released three new books in 2012: Occupy the Economy: Challenging Capitalism, with David Barsamian (San Francisco: City Lights Books), Contending Economic Theories: Neoclassical, Keynesian, and Marxian, with Stephen Resnick (Cambridge, MA, and London: MIT University Press), and Democracy at Work (Chicago: Haymarket Books).
Maxine Waters in line to take over from Frank on Financial Services. Egypt uses U.S. teargas on pro-democracy crowds. Jamestown Jobs (PA) Supercommittee slows to a standstill. APEC members pledge to liberalise green trade - APEC summit. Goldman commods risk tumbles on tough markets.
Greece. Friday Market Follies - Following Murdoch's Money.