Sunday, October 4, 2009

Weekend reading October 4th, 2009

Stocks may hit earnings speed bumps: U.S. stocks could hit more speed bumps this week if the start of the third-quarter earnings season offers little evidence that the economic recovery is gaining strength.

The Curse Of Dow 10,000: Now that the Dow has been above 9,000 for several months, it’s time to start wondering about whether we’ll see the return of the curse of Dow 10,000 this fall....

German banks fear drive for higher capital ratios will trigger 'dramatic' contraction:Heinrich Hassis, head of Germany's federation of savings banks (DSGV), said the new G20 rules under way threaten to shrink the capital base of German banks by "tens of billions" and cause a permanent credit crunch....

Investment Outlook Bill Gross, Doo-Doo Economics: The world is turning “green” – global warming or not. Electric cars, free-range chickens, and White House vegetable gardens are the wave of the future, but the defining badge of environmentalists may be none of those and might, in fact, be colored blue, as opposed to green....

Guest Post: Still The Masters of the Universe: Tom Wolfe writing in Bonfire of the Vanities created the term – ‘Masters of the Universe’: “He considered himself part of the new era and the new breed, a Wall Street egalitarian, a Master of the Universe, who was only a respecter of performance.” Wall Street bond trader Sherman McCoy, the original Master of the Universe, came to personify the avariciousness and self-aggrandisement of financiers.

Doubts remain on IMF global power: For most of the past decade, the International Monetary Fund has been a bored coastguard staring across a calm sea....

Wall Street faces day of reckoning over Bear Stearns: Ralph Cioffi Jnr and Matthew Tannin were once masters of the universe – now they face trial for their role in the collapse of Bear Stearns....

Investors brace for a rocky ride: After two down weeks, investors are starting to wonder if a bigger selloff could be brewing. The start of the third-quarter reporting period could provide some clarity....

Please do feed the bears, The financial world needs its pessimists: NOBODY loves a party-pooper. When asset prices are going up, most people are inclined to celebrate. The bears who argue that asset prices are about to fall tend to get dismissed as out of touch (dotcom sceptics supposedly “just didn’t get it”) or are likened to stopped clocks: occasionally right, but mostly wrong....

A lot to swallow: Corporate-bond defaults may be peaking, but there could still be trouble ahead in leveraged loans....

The Impact of the Declining Homeownership Rate: From 1995 to 2005, the U.S. homeownership rate climbed from 64% to 69%, or about 0.5% per year.