James Hamilton at Econbrowser takes a look at the inflation situation, and takes issue with Ben Bernanke’s assumptions on inflation (founded on his “dourness of the outlook for real economic activity”). He notes the sharp upward moves in commodities from A to Z, from aluminum to zinc. “If it were just a few commodities moving, I wouldn’t be concerned, as any of these prices can be quite sensitive to small disruptions in supply,” he …
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The Federal Reserve left interest rates at 1% too long earlier this decade, one of the policymakers behind that decision said Friday.
Poole
In interesting times, annual letters from Warren Buffett on the state of Berkshire Hathaway are more anticipated than in other years. The 77-year-old chairman of the Omaha-based firm releases his annual letter (which, we’re told, will also mention the company’s earnings) at around 4:30 p.m. ET, replete with the usual references to aging a…
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$$$ Schwarzman’s School Ties [DealBook]
$$$ Vote on whether Tim Sykes has discovered the secret formula for the stock market. [TimSykes.com]
$$$ S…
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On Jan. 22, the Bernanke Fed broke with its, and the Greenspan Fed?s, past of moving gradually in predominantly 25 basis point, or quarter percentage point, rate moves by delivering a 75 basis point rate cut followed by 50 basis points nine days later.
Vincent Reinhart, a scholar at the American Enterprise Institute and, until last fall, a senior staffer at the Fed who helped advise on such decisions, thinks this signals a shift in how the Fed executes monetary policy.
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Ambac (NYSE: ABK) was able to keep its Moody’s Aaa rating, In the process it had to cut its dividend from $.07 to .01. The bond insurance company said it would also suspend all structured finance business for the next six months. The company commented “Suspending structured finance writings for six months is expected to free up approximately $600 million in capital.” Douglas A. McIntyre
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Who remembers that Craiglist ad from the 28 year old Goldman banker looking for someone to lavish with his (pretax) $722k bonus? I’m going to go with all of you because, frankly, it/he was unforgettable. The Viking stove, the custom-made oak dresser, the amazing dinners, the shopping, the great wine, the getting each other off fabulously and, of course, the baby’s arm aren’t things one lets recede from his/her consciousness so easily. Sure, the whole thing turned out to be fake and from the mind of someone named the C…
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Your jobs sucks. That’s why we spent part of the afternoon combing through our Career Center in search of the most interesting jobs. There are dozens to choose from, all categorized according to specialization. But one special one has been selected as our Job of The Week.
A multi-strategy hedge fund is seeking an experienced risk taker to trade the m…
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Small-cap stocks have by no means been outstanding this year, but in the eyes of some, they’re still exceeding expectations.
Some analysts take spreads of high-yield bonds into account when looking at small-caps, as the former serves as a good proxy for credit risk in less-established companies. This year, high-yield spreads continue to widen as investors adjust their risk expectations. A…
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I so deserved this in the comments today from Crawford on my Amazon switcheroo:
Howard be nimble,
Howard be quick,
Howard stopped after
his Kindle schtick.
You stock your neck out and sometimes you get it cut off. Amazon is a roundtrip for me and I likely should have gotten out in the hype and when the getting was good. Coulda Shoulda Woulda. I am truly sorry that people have lost money following me on this one. I can’t hope us back to breakeven though. I can move on and find other winners and when (if) Amazon’s stock gets back in gear, climb back with a clear head.
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(February 29, 2008 01:54 PM, by Bryan Caplan) Shanghai Daily takes the prize for the strangest review of my book:True, economics is about profit maximization, and when this……
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I wrote this week that I expect rebound for Divx (DIVX). Today stock were off 10% (25% in last 5 days!!!) but nevertheless price turned over and closed by +0,41%. This rebound has formed technical hammer candlestick. I see this as beginning of short term reverse.Another tech company which I am watching closely is Google (GOOG). Recent selling pressure sent shares to valuation which is very attractive in comparison to growth prospects. Even broad sell 0ff on US markets didn’t affect Google too much and stocks closed only with -0,89% change….
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Of these ideas, which is most likely to succeed?
1) A prosthetic sock that alleviates discomfort for below-knee amputees
2) A silicone breast-enhancer bra insert that also doubles as a wallet
3) A device that extends the preservation time of organs during transplant transport
4) Vending machines for locally-sourced filtered water, bottled on demand in a low-waste recyclable bottle
5) Visual commercials for free ad-supported music to listeners using portable devices, personal computers, and the Web.
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Boeing (NYSE: BA) and its stockholders were counting on getting the US military contract to build new refueling tankers. The deal is worth $40 billion, and Boeing is the incumbent. Things didn’t work out. Northrup Grumman (NYSE: NOC) and Boeing rival EADS, the parent of Airbus, won the contract. Boeing shares are down 3.5% after hours to under $80. NOC is up 5.6% to $83. Douglas A. McIntyre
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Marc Chandler, head of currency strategy at Brown Brothers Harriman, says momentum trading has been at the forefront of currency trading of late, not carry-related trades. “For the most part, it seems as if the recent price action in the currency market can be better explained by the momentum strategies than carry trades,” he writes. “Many, like ourselves, were perhaps lulled into a bit of complacency by the clearly identifiable trading range which had confined the euro for the better part of 4 months. Until it didn?t and then various types of participants, acting like momentum traders, had to scramble and chase the euro higher.”
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Fremont General (FMT) Threatens more write-downs. Falls to $.73 from 52-week high of $13.80. R H Donnelley (RHD) Downgrades after poor earnings. Hits bottom of $6.26 from 52-week high of $84.49. MF Global (MF) Still falling after trading loss. Drops to $14 down from 52-week high of $32.20. Sprint Nextel (S) Still being punished for earnings. Falls to $7.08 from 52-week high of $23.42. Journal Register (JRC) Newspaper company. Falls to $.78 from 52-week high of $7.23. Limelight Networks (LLNW) Loses patent suit. Sells off to $3.82 from 52-week high of $24.33. IAC Interactive (IACI) Underperforming e-commerce company. Drops to…
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U.S. Steel (X) and Petrobras (PBR) were called buys on Stop Trading today. The purchase of a scrap company alleviated the primary concern and PBR is right with them. The market’s dismay was shown in AIG (AIG) conference call today. Last CEO Larry Goldstone from Thornburg Mortgage (TMA) was lauded. His idea that the government money used for the stimulus package should be used instead for triple-A mortgage paper led Cramer to say “Larry is a very sophisticated player.”
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Not content to sit idle while their peers at Citadel and Stark Investments lose millions of dollars by backing movies like “Evan Almighty” and “Poseidon,” Elliot Associates has gotten some of that, agreeing to provide at least $1 billion to co-finance 75% of Universal Pictures’ films over the next four years, with Relativity Capital. Relativity is the private equity firm which has gotten some great press lately for convincing defenseless hedge funds to put their green in paper bags and light it on fire via 12-terrible-flicks-at-a-time package deals. Elliot is the firm that, earlier this week, a…
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