Bear Stearns ( BSC ) stock stubbornly trades above the $2 a share buyout price. ( Market Movers , Big Picture , Interfluidity , WSJ.com , DealBook , DealZone )
The Visa ( V ) was a success for the underwriters, member banks and IPO investors alike…and could have some room to run. ( MarketBeat , DealBook , CNNMoney.com , Bespoke Investment Group )
“ Bubbles lead to busts . Busts lead to panics. And panics can lead to long, deep economic downturns, which is why the Fed has been taking unprecedented actions to restore confidence.” ( NYTimes.com )
Another measure of financial strain in the U.S. capital markets. ( FT Alphaville )
Fannie and Freddie have their capital requirements loosened. ( WSJ.com , Curious Capitalist , Market Movers )
Financial crises that lead to widespread debt defaults are nothing new. ( Real Time Economics )
Are h...
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Safe havens against stagflationFrom: abnormalreturns.com
Post Date: 2008-03-04 12:17:26
The markets are currently dealing with any number of cross-currents. One need only look to the fixed income markets to see how fears of stagflation are playing out in real time. Investors in search of a safe haven against stagflation are rapidly running out of options.
First, yields on the five-year TIPS are now below zero! In short, investors desperate for a “safe” way to play higher inflation have bid the bonds to levels not previously seen. (via Calculated Risk ...
more Tuesday links: corporate cash cacheFrom: abnormalreturns.com
Post Date: 2008-03-04 09:03:37
U.S. corporations are flush with cash . Net debt ratios hover around zero. ( NYTimes.com )
Will a weak economy prompt more corporate divestitures ? ( Financial Week )
“(N)ow both the bond market and foreign exchange show acute concern for the US economy .” ( FT Alphaville )
Investors are increasingly turning to currencies as an asset class . ( Capital Spectator )
Have commodity index investors pushed prices too hig...
more Wednesday links: follow the FedFrom: abnormalreturns.com
Post Date: 2008-03-05 08:56:08
“In standard models of asset pricing, negative real interest rates are most likely to arise if growth expectations are particularly low or if uncertainty is particularly high.” ( Mankiw Blog )
Why are other central banks not playing follow the Fed ? ( WSJ.com , NYTimes.com )
How much attention should central banks pay to commodity-led inflation ? ( FT Alphaville )
Searching for safe havens in times of stagflation. ( Market Blog...
more How to lie with statisticsFrom: abnormalreturns.com
Post Date: 2008-03-05 12:40:35
“ How to Lie With Statistics ” by Darrell Huff is a venerable book on the many ways we as end-users of statistics can be misled by “the numbers.” As participants in the capital markets we are bombarded with various statistics on a daily basis. From various governmental sources we receive data on the state of the economy. From companies we receive earnings report that purport to tell us how the firm is doing.
This post is not about the deliberate manipulation of ...
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