Description:Â Economists have long been predicting commercial real estate could be the next day of reckoning for the financial markets, with a wave of defaults looming as billions of dollars in troubled loans come due in the coming months. But a little-noticed bill introduced in January could help bring a new source of desperately-needed liquidity… Read more »
Posts Categorized: Governments & Regulators
Euro tarnished, but rivals lack shine
Description:Â Â The euro is damaged goods, laid low by a debt crisis that has revealed the shortcomings of European economic and monetary union, economists say. Source: Marketwatch.com Date: 02/26/2010 Link: http://www.marketwatch.com/story/euro-tarnished-but-rivals-dont-shine-2010-02-26?siteid=nwtwk Questions for discussion: How would you expect hedge fund managers to play the current situation? How should corporate financial planners dealing with exports or… Read more »
Fed Raises Discount Rate
Description: The Fed raised the rate it charges banks for emergency loans by a quarter percentage point. WSJ’s Justin Lahart breaks down what it means in an interview with Simon Constable. Source: Marketwatch – video report  Date: 02/18/2010 Link: http://www.marketwatch.com/video/asset/news-hub-fed-raises-discount-rate/62D44209-3F0C-458C-9BF9-6A58762E0ABD Questions for discussion: Summarize the reasons given in the report for a gradual increase… Read more »
Blackstone CEO: Banks feel beat up
Description: Fortune’s Leigh Gallagher discusses Steve Schwarzman’s op-ed piece and explains why banks are blamed for the financial crisis. Source: CNNMoney – video report  Date: 02/12/2010 Link: http://money.cnn.com/video/fortune/2010/02/12/f_sl_blackstone_banks.fortune/ Questions for discussion: Do you agree with the statement that “bank lending fuels private equity deals? Explain your answer. Do you believe proposed legislation will harm… Read more »
The downside to the global economy
Description: Fortune editors explain how problems in places like Dubai and Greece are affecting U.S. markets. Source: CNNMoney – video report  Date: 02/10/2010 Link: http://money.cnn.com/video/fortune/2010/02/10/f_sl_greece_euro.fortune/ Questions for discussion: Summarize the impact that global debt levels and deleveraging may have on domestic as well as international investing strategies? What strategy would you advise – particularly… Read more »
Volcker says must let big financial firms fail
Description: Large financial institutions that engage in speculative activities for profit should be allowed to fail if they get in trouble, White House advisor Paul Volcker said on Sunday. Source: Reuters.com Date: 02/014/2010 Link: http://www.reuters.com/article/idUSN1414676420100214?type=marketsNews Questions for discussion: Do you agree with Paul Volcker’s argument? Explain your answer. What would the impact be on risk… Read more »
Europe’s economic catch-22
Description: Facing massive national debts, some European nations are planning to cut spending even as unemployment continues to rise. Source: CNNMoney – video report  Date: 02/05/2010 Link: http://money.cnn.com/video/fortune/2010/02/05/f_sl_euro_default.fortune/ Questions for discussion: What is the connection between the economic problems in Europe and the Euro? How is the economic and financial crisis in Europe different… Read more »
Glass-Steagall crash course
Description: Obama and Volcker want to limit big banks. Readers of ‘The Buzz’ think it’s a good idea but are skeptical regulation will pass Congress. Source: CNNMoney – video report  Date: 02/02/2010 Link: http://money.cnn.com/video/news/2010/02/02/n_bz_glass_steagall.cnnmoney/ Questions for discussion: Should Glass-Steagall be returned? Why or why not? How much blame for the crisis is rightly placed… Read more »
Liquor store privatization could be boon for Big Booze
Description: With their finances on the rocks, states that control the sale of liquor to the public are looking at handing the job to private enterprise, a move that could raise revenue, streamline government, and prove a boon to the spirits industry. Source: Marketwatch.com Date: 02/06/2010 Link:Â http://www.marketwatch.com/story/liquor-store-privatization-a-boon-for-big-booze-2010-02-06 Questions for discussion: How will this move… Read more »
Corporate Bond Spreads Rise Most Since November: Credit Markets
Description:Â Corporate borrowing costs are rising at the fastest pace in more than two months on concern that worsening government finances will slow the global economy and make it harder for companies to meet debt payments. Source: Bloomberg.com Date: 02/08/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=auWwLKPsLRFM Questions for discussion: Summarize the report and the impact this trend will have… Read more »
