The normally cheerleading Wall Street Journal, contrary to its usual form, voices considerable doubts about the near-200-point runup in the Dow yesterday: Stocks soared to a new all-time high….suggesting that investors already are shrugging off the problems that rocked global financial markets only weeks ago….. The scamper to new highs comes despite surging mortgage defaults, […]
Read more...A few days ago, we said we were willing to eat a bit of crow. Even though we had acknowledged some time ago that Bear might not survive the subprime mess as an independent firm, we also thought that no one with any sense would take a strategic position (taking a speculative bet is an […]
Read more...I am currently in Bailey Island, Maine. For those who know Maine, it is in Casco Bay near Brusnwick. Functionally, it is quite remote from urban America. The local economy is based on tourism, an airbase due to be closed in 2011, and fishing, particularly lobster fishing. So it made my day to find copies […]
Read more...If one didn’t know better, it might be possible to think that a page one story today, “Too Much Hope May Be Pinned On Rate Cut.,” was a decent piece of journalism. But to reach that conclusion, you need to overlook a few things. First, the story is late. Those who were early to recognize […]
Read more...Alan Greenspan made the mistake of resorting to a tired and increasingly ineffective move from the Bush playbook. Specifically, tell a big lie long and loudly enough, and quite a few people will come to believe you. But in Greenspan’s case, this tactic may be backfiring. Greenspan seems to have forgotten that some of the […]
Read more...One of the salient differences between Greenspan’s and Bernanke’s tenure as Fed chairman (at least so far) was Greenspan’s skill at playing to his audience, which was the financial press, Congress, and market participants. With the publication of his memoirs next week, Greenspan will be performing for a larger crowd, although it will be dominated […]
Read more...Bloomberg has a good piece today contrasting Bernanke’s and Greenspan’s problem solving styles. But reading it set off a flash as to where their real difference lie. We’ll review Bloomberg’s take and then mine. The Bloomberg piece, “Bernanke Spurns Greenspan Quick Fix, Seeking Data, Deliberation,” is a flattering bit of reporting. It tells us that […]
Read more...One of our forms of recreation is keeping an eye on how coverage of certain news stories in the Wall Street Journal is curiously different than elsewhere. We’ve noted before that the WSJ tends to put a happy face on economic and market news (its company reporting is considerably more evenhanded). The latest reporting disparity […]
Read more...I’m late to this item, and I probably should let it go, but it is so disingenuous (I’m tempted to say intellectually dishonest) that I can’t let it go by. On Sunday, the New York Times ran an “Economics View” article, “It’s Monetary Policy, Not a Morality Play,” by Tyler Cowen, well known libertarian and […]
Read more...Readers have probably figured out that I think the reporting in the Wall Street Journal is overrated. We have a prime example on page one today, “How Market Turmoil Waylaid the ‘Quants’.” My understanding is that newspapers are in the business of providing news. The story that the quants are in trouble is a month […]
Read more...Boy, is sentiment changing. The latest indicator: an article in MarketWatch bemoaning the demise of Glass Steagall, the law enacted in 1933 that separated commercial banking from investment banking. The article by Thomas Kostigen gets the history wrong. It makes it sound as if the repeal of Glass Steagall in 1999 was a watershed event. […]
Read more...Will someone, please, teach the reporters at the Wall Street Journal the basics about scientific research? I know it’s hard finding stuff to write about day in, day out. But the story “Scholars Link Success of Firms To Lives of CEOs” is a travesty. The centerpiece of the article is a study by Morten Bennedsen, […]
Read more...Ah, fall is upon us, and with it comes the spectacle of renewed discussion of what to do about the snowballing subprime/housing mess. Members of Congress will compete for air time to Bemoan the Situation, Search for the Guilty, and Throw Money at the Problem. Note there may occasionally be thoughtful analysis and sensible regulatory […]
Read more...This story, on the Chinese successfully making a cyber attack on the Pentagon, is admittedly a bit wide of the subject matter of this blog, but it’s a major story that the Financial Times seems to have broken. I don’t see it on the New York Times, Wall Street Journal, CNN or Bloomberg sites. Bizarrely, […]
Read more...Frankly, this is pathetic. If Bernanke and his minions can’t take the heat of some well-deserved criticism from the highly-regarded Martin Wolf of the Financial Times, they don’t belong in public service. To recap: yesterday, Wolf issued a stinging rebuke of Bernanke’s conduct on the Financial Times editorial page, in “Central banks should not rescue […]
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