Ireland risks a “major bank run” unless European officials act quickly to calm the financial turmoil in the nation, Pacific Investment Management Co. Co-Chief Investment Officer Mohamed A. El-Erian said. [more]
Fictional, but interesting: [more]
My charming wife hit me with this zinger: “Doesn’t GM’s stock sale show that you were wrong to complain about the bailout?” [more]
Back in the late 1990s, I can vividly recall investors confidently assuring me they were buying stocks like Intel, Yahoo and Cisco for “the long haul,” based on their strong growth prospects for the Internet economy. The Internet did boom, but the valuations of the stocks did not, with a few exceptions like Amazon and Priceline. Earlier this week, Cisco hit a new yearly low, less than a quarter of the price it traded at 11 years ago. [more]
The disarray stemming from flawed foreclosure documents could threaten major banks with billions of dollars in losses, deepen the disruption in the housing market and hurt the government's effort to keep people in their homes, according to a new report from a congressional watchdog.
Revelations that several big mortgage issuers sped through thousands of home foreclosures without properly checking paperwork already has raised alarm in Washington. If the irregularities are widespread, the consequences could be severe, the Congressional Oversight Panel said in a report issued Tuesday. The full impact is still is unclear, the report cautions.
Employees or contractors of several major banks have testified in court cases that they signed, and in some cases backdated, thousands of certifying documents for home seizures. Financial firms that service a total $6.4 trillion in mortgages are involved, according to the new report. Big banks including Bank of America Corp., JPMorgan Chase & Co. and Ally Financial Inc.'s GMAC Mortgage have suspended foreclosures at some point because of flawed documents. [more]
Widespread problems in how U.S. lenders documented foreclosures could spark a wave of legal challenges resulting in massive losses to banks and serious new troubles for the housing market, a federal watchdog warned on Tuesday. [more]
The Federal Reserve is rigging the stock market to boost the economy, and the consequences may be dire, says Jeremy Grantham, chairman of Grantham Mayo Van Otterloo.
When it comes to stocks, “What I worry about most is the Fed’s activity,” he tells CNBC.
“QE2 is just the latest demonstration. The Fed has spent most of the last 15-20 years manipulating the stock market whenever they feel the economy needs a bit of a kick.” [more]
Most serious gold investors follow a basic principle: that gold is stable in value. Changes in the “gold price” represent changes in the currency being compared to gold, while gold itself is essentially inert.
This is why gold was used as a monetary foundation for literally thousands of years. You want money to be stable in value. The simplest way to accomplish this was to link it to gold. Today, we summarize this quality by saying that “gold is money.” [more]
(In keeping with my policy of only listening to people named Peter, I present the following.) [more]
I know it's childish and wrong to revel in someone else's misery or misfortute, but I simply can't help it when it come to Keith Olbermann. [more]
Former Federal Reserve Chairman Paul Volcker says the U.S. central bank's plan to buy hundreds of billions of dollars in government bonds probably won't do much to boost the economic recovery.
The Fed announced Wednesday that it would purchase $600 billion in Treasurys, aiming to lower long-term interest rates in an effort to spur spending and ultimately lower the U.S. unemployment rate, currently at 9.6 percent. The move comes on the heels of previous purchases of $1.7 trillion in mortgage and Treasury bonds.
Volcker told a business audience in Seoul that the Fed's bond plan is obviously an attempt to spur the U.S. economy but "is not the kind of action that's likely to change the general picture that I've described as slow and labored recovery over a period of time." [more]
For those interested, here's an interview with the Taseko Mines CEO yesterday. Sorry, but it doesn't appear that there's a way to embed it.