Moody's: Debt crisis may hurt banks outside Greece (AP)

Protesters take part during an anti-government rally in Athens on Wednesday May 5, 2010. Deadly riots over harsh new austerity measures engulfed the streets of Athens on Wednesday, killing three bank workers as angry protesters tried to storm parliament, hurled Molotov cocktails at police and torched buildings. Tens of thousands of people took to the streets as part of nationwide strikes to protest new taxes and government spending cuts demanded by the International Monetary Fund and other European nations before heavily indebted Greece gets a euro110 billion (US$141 billion) bailout package of loans to keep it from defaulting.(AP Photo/Thanassis Stavrakis)AP - The debt crisis enveloping Greece could spread to hurt the banking systems in Portugal, Italy, Spain, Ireland and Britain, a leading credit ratings agency warned Thursday.



Source: Yahoo! News: Business News | 6 May 2010 | 4:15 am

Team to see if oil has reached Gulf islands (AP)

Fishermen wait to talk to a representative to register to use their boats and help with the cleanup effort for the Deepwater Horizon disaster in the Gulf of Mexico, in Venice, May 5, 2010. REUTERS/Tim Aubry/Greenpeace/HandoutAP - A rapid response team will investigate unconfirmed reports that oil from a massive spill in the Gulf of Mexico has reached the Chandeleur Islands off Louisiana's coast.



Source: Yahoo! News: Business News | 6 May 2010 | 4:12 am

NAB sees UK banks debts improve

The owner of the Clydesdale and Yorkshire banks, National Australia Bank, says the UK businesses have seen bad debt levels improve.
Source: BBC News | Business | World Edition | 6 May 2010 | 4:11 am

Britain votes 2010 - AFP Live Report (AFP)

The front door of 10 Downing Street in London. Election Day has arrived. Election Day has arrived. Voters across Britain are heading to the polls Thursday in what is expected to be the closest election contest in decades.(AFP/Leon Neal)AFP - 11:09: Boris Johnson, London's Tory mayor, was slightly more verbose. "I think we'll have a strong Conservative victory tonight and walking around London yesterday and today, I feel very strongly that the swing is on and the public are in the mood for change," he told reporters after cycling to his local polling station in Islington.



Source: Yahoo! News: Stock Markets News | 6 May 2010 | 4:09 am

Russian marines free captured tanker off Somalia (AFP)

File picture shows Somali pirates preparing their boat in Hobyo, northeastern Somalia. Russian marines stormed a hijacked Russian oil tanker in the Gulf of Aden early Thursday, killing one of the Somali pirates aboard and capturing the remaining 10, officials said.(AFP/File/Mohamed Dahir)AFP - Russian marines stormed a hijacked Russian oil tanker in the Gulf of Aden early Thursday, killing one of the Somali pirates aboard and capturing the remaining 10, officials said.



Source: Yahoo! News: Business News | 6 May 2010 | 4:09 am

Zurich Financial reports 76 pct rise in Q1 profit (AP)

AP - Swiss insurer Zurich Financial Services Group reported a 76 percent jump in first-quarter net profit Thursday despite paying out more for natural disasters during the period.
Source: Yahoo! News: Business News | 6 May 2010 | 4:09 am

Sovereign debt fears push euro lower

Global Markets Overview: European bourses open lower, with the FTSE Eurofirst 300 down 0.6% and London’s FTSE 100 off by 0.5% as UK voters head to the polls
Source: Financial Times - US homepage | 6 May 2010 | 4:07 am

An iPad Scam to Avoid



Source: Business Pundit | 6 May 2010 | 4:04 am

Greece says bailout is only hope (AP)

A man talks to a police officer as he place flowers at the Marfin Egnatia Bank while police search for clues, at right, in central Athens, on Thursday, May 6, 2010. Riots broke out across Athens during a massive protest Wednesday against drastic austerity measures introduced to secure rescue loans for the country's near-bankrupt economy. Lawmakers began debating the measures and were due to approve them later Thursday.(AP Photo/Petros Giannakouris)AP - Greece's only hope of avoiding bankruptcy is to take money from a joint EU and International Monetary Fund rescue package, the finance minister said Thursday during a heated Parliamentary debate overshadowed by the deaths of three people during protests against spending cuts.



Source: Yahoo! News: Business News | 6 May 2010 | 4:02 am

UK election: Best bet is that history will be made (AP)

Britain's Prime Minister Gordon Brown, left, greets students at the University of Bradford, in Bradford England, Wednesday, May, 5 2010, the day before Britain goes to the polls in a General Election. With polls still indicating that Britain is on course for a hung parliament, all three major party leaders were engaged in frenzied last-ditch campaigning across the country. (AP Photo/Alastair Grant)AP - Polls in Britain's razor-edge election opened early Thursday in a race that is likely to reshape the country's politics in historic ways.



Source: Yahoo! News: Business News | 6 May 2010 | 3:58 am

Indications: U.S. futures in tight range ahead of ECB, data

U.S. stock futures were trading in a tight range on Thursday, but were facing a few hurdles, such as big losses in Asia, a European Central Bank meeting, elections in Britain and economic data.



Source: MarketWatch.com - Top Stories | 6 May 2010 | 3:58 am

Services growth eases in volcanic ash cloud

Activity in Britain’s services sector slowed last month, as the volcanic ash cloud disrupted businesses and concerns about the outcome of the election dented confidence.


Source: Latest Business News from Times Online | 6 May 2010 | 3:55 am

Greek parliament to vote on cuts

Greece's parliament is due to vote on austerity measures, a day after violent protests left three bank workers dead.
Source: BBC News | Business | World Edition | 6 May 2010 | 3:54 am

From meat to wages, economic woes fuel Egypt anger (AP)

Two Egyptian butchers wait for customers at their shops in the main butchers' market in Cairo, Egypt Wednesday, May 5, 2010. There is a growing chorus of despair and frustration over rising prices of everything from food to housing in Egypt, a key U.S. Mideast ally where more than 40 percent of the population of 79 million lives under or near the poverty line, and what's worrisome for the government is that this anger is showing signs of turning political. (AP Photo/Nasser Nasser)AP - For the past six weeks, Khulud Mustafa has walked past the butcher near her apartment in Cairo's run-down Ain Shams district, casting wistful looks at the meat hanging outside his shop as the price has steadily risen.



Source: Yahoo! News: Business News | 6 May 2010 | 3:49 am

Musical about Enron's collapse flops on Broadway

Lucy Prebble's play Enron, about one of the biggest financial scandals in history, is to close on Broadway after just 15 performances and 22 previews.
Source: BBC News | Business | World Edition | 6 May 2010 | 3:44 am

'Profound' decline in fish stocks

Over-fishing means UK trawlermen must work 17 times as hard for the same fish catch as 120 years ago, a study shows.
Source: BBC News | Business | World Edition | 6 May 2010 | 3:41 am

Tokyo drops 3.3%, Shanghai 4.1% in Asian sell-off

Most Asian stocks and currencies suffered heavy losses Thursday on deepening worries about European sovereign debt and fears that Beijing’s tightening policies might slow Chinese economic growth.



Source: MarketWatch.com - Top Stories | 6 May 2010 | 3:37 am

Spain's debt costs rise (AP)

AP - Spain's borrowing costs have risen significantly in its first debt auction since its credit rating was downgraded last week by Standard & Poor's amid concerns it might be hit by a Greek-style debt crisis.
Source: Yahoo! News: Business News | 6 May 2010 | 3:35 am

Nintendo Unit Sales Drop 21% From Last Year

The news is bad for Nintendo. It reported its fiscal year numbers. The video game company posted its first full-year drop in revenue in six years. Wii sales were down 21% year-over-year to 20.53 million. Revenue fell 22% to 1.434 trillion yen and operating profit dropped 36% to 356.57 billion yen. Nintendo’s problems go well [...]

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Source: 24/7 Wall St. | 6 May 2010 | 3:34 am

Europe Markets: Battered Europe stocks advance as banks climb

European shares steadied on Thursday after a week of selling, with BNP Paribas leading banks higher on better-than-forecast results while Alcatel-Lucent shares skidded.



Source: MarketWatch.com - Top Stories | 6 May 2010 | 3:34 am

Toyota's domestic sales up 50% in April (AFP)

A logo of embattled global auto giant Toyota is pictured in north west England. The firm's domestic sales rose 50 percent in April from the same time last year, despite millions of safety recalls worldwide, an industry group said Thursday.(AFP/File/Andrew Yates)AFP - Embattled auto giant Toyota Motor's domestic sales rose 50.0 percent in April from the same time last year, despite millions of safety recalls worldwide, an industry group said Thursday.



Source: Yahoo! News: Business News | 6 May 2010 | 3:24 am

Oil spill costs: What will BP really pay?

The Gulf oil spill is going to cost billions to clean up, a tab BP has publicly pledged to pay in full.
Source: Business and financial news - CNNMoney.com | 6 May 2010 | 3:22 am

Peugeot signs China joint venture

French car giant Peugeot agrees a new joint venture to manufacture light commercial vehicles and cars in China.
Source: BBC News | Business | World Edition | 6 May 2010 | 3:21 am

Oil lower in Asian trade, NY crude stays near $80

Oil fell in Asian trade Thursday, giving up earlier gains as the strong dollar weakened appetite for crude futures, analysts said. New York's main contract, light sweet crude for June,...
Source: RSS feed - channel BNewsBusiness | 6 May 2010 | 3:17 am

Swiss Re confident it can repay Buffett

ZURICH (Reuters) - Swiss Re , the world's second-biggest reinsurer, boosted its capital by around $3 billion, giving it confidence it can repay a costly convertible loan from billionaire Warren Buffett and regain a key credit rating.



Source: Reuters: Business News | 6 May 2010 | 3:17 am

Nintendo profit drops for first time in 6 years (AP)

A man stands in front of Nintendo's game monitors in a showroom in Tokyo Thursday, May 6, 2010. The maker of Super Mario and Pokemon games said Thursday its net profit for the fiscal year ended March 31 fell 18 percent to 228.6 billion yen (US$2.5 billion). (AP Photo/Shizuo Kambayashi)AP - Japanese game-maker Nintendo suffered its first drop in annual profit in six years, hit by a price cut for the Wii home console and sliding global sales.



Source: Yahoo! News: Business News | 6 May 2010 | 3:17 am

Alcatel-Lucent's loss widens on component shortage

Shares of Alcatel-Lucent plunged as much as 11% on Wednesday after the telecoms-equipment maker said its first-quarter loss widened and sales declined because of component shortages.



Source: MarketWatch.com - Top Stories | 6 May 2010 | 3:13 am

Amid strikes, Greece says bailout is only hope

Greek Finance Minister George Papaconstantinou says his country's only hope of avoiding bankruptcy and a suspension of payments this month is to take money from a joint European Union and...
Source: RSS feed - channel BNewsBusiness | 6 May 2010 | 3:12 am

European stocks fall sharply at open

Europe's main stock markets dived in opening trade on Thursday, as investors fretted over the Greek financial crisis and its potential impact on the eurozone and the European single...
Source: RSS feed - channel BNewsBusiness | 6 May 2010 | 3:12 am

European stocks fall sharply at open (AFP)

A man works at the office of the Global Equities investment company in Paris. Europe's main stock markets dived in opening trade, as investors fretted over the Greek financial crisis and its potential impact on the eurozone and the European single currency.(AFP/File/Stephane de Sakutin)AFP - Europe's main stock markets dived in opening trade on Thursday, as investors fretted over the Greek financial crisis and its potential impact on the eurozone and the European single currency.



Source: Yahoo! News: Stock Markets News | 6 May 2010 | 3:12 am

Freddie Mac: Another $10.6 Billion From Taxpayers

Freddie Mac (NYSE: FRE) lost another $8 billion in the first calendar quarter of the year. That includes $1.3 billion in dividends paid to the Treasury. Freddie might have simply kept the money. It needs another $10.6 billion from the government to continue its operations. The company’s CEO Charles Haldeman said, “We are seeing some [...]

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Source: 24/7 Wall St. | 6 May 2010 | 3:08 am

Stocks set for bumpy ride

U.S. stock futures drifted Thursday amid ongoing concerns about the effect the debt crisis in Europe will have on the global economic recovery.
Source: Business and financial news - CNNMoney.com | 6 May 2010 | 3:06 am

UPDATE 2-Smith & Nephew Q1 beats view, reaffirms guidance

LONDON, May 6 (Reuters) - Smith & Nephew , Europe's largest maker of replacement knees and hips, beat expectations with a 44 percent rise in Q1 earnings, helped by a one-off settlement, and said it...
Source: RSS feed - channel BNewsBusiness | 6 May 2010 | 3:04 am

The Lowdown on Gadget Protection (Deal of the Day)

Sony now offers protection plans. Should you buy directly or from a retailer?



Source: SmartMoney.com | 6 May 2010 | 3:01 am

Greece's Failed 'Immaculate Recovery'

A Q&A with Mohamed El-Erian: What's next for Europe -- and elsewhere.



Source: SmartMoney.com | 6 May 2010 | 3:01 am

Google enters digital books war

Search giant Google plans to open a digital bookstore called Editions by the end of the year, the company confirms.
Source: BBC News | Business | World Edition | 6 May 2010 | 3:01 am

Why Centenarians Are So Content (The New Retirement)

Most 100-year-olds are content with even meager resources. Here's why.



Source: SmartMoney.com | 6 May 2010 | 3:01 am

Stock index futures point to higher Wall St Open

(Reuters) - Futures for the Dow Jones industrial average, the S&P 500 and the Nasdaq 100 rise 0.1 to 0.2 percent, pointing to a firmer open on Wall Street on Thursday, after sharp declines in the previous session.



Source: Reuters: Business News | 6 May 2010 | 2:59 am

Stock index futures point to higher Wall St Open (Reuters)

A giant banner protesting Greece's austerity measures hangs near the Parthenon on Acropolis hill in Athens early May 4, 2010. REUTERS/Pascal RossignolReuters - Futures for the Dow Jones industrial average, the S&P 500 and the Nasdaq 100 rise 0.1 to 0.2 percent, pointing to a firmer open on Wall Street on Thursday, after sharp declines in the previous session.



Source: Yahoo! News: Stock Markets News | 6 May 2010 | 2:59 am

UPDATE 2-Danisco lifts 2009/10 guidance due to strong Q4

* Raises 2009/10 revenue guidance to around 13.65 bln DKK
Source: RSS feed - channel BNewsBusiness | 6 May 2010 | 2:56 am

London Markets: U.K. shares edge higher as election gets underway

British stocks edge higher on the day of the U.K. general election, with miners leading the advance and RSA Insurance also gaining ground.



Source: MarketWatch.com - Top Stories | 6 May 2010 | 2:55 am

Polls open in tight election contest

As polling stations open across the UK final opinion polls suggest the country is heading for a hung parliament in which the Tories fall short of an overall majority
Source: Financial Times - US homepage | 6 May 2010 | 2:54 am

Nintendo Q4 profit up, but sees decline ahead

TOKYO (Reuters) - Japan's Nintendo Co posted its first quarterly profit growth in more than a year, helped by the launch of a popular game, but it forecast a second straight year of smaller profits as sales of its Wii console slow.



Source: Reuters: Business News | 6 May 2010 | 2:53 am

Into the Cloud

Cloud computing is going mainstream at last - and set to revolutionise business computing
Source: BBC News | Business | World Edition | 6 May 2010 | 2:50 am

UPDATE 2-Nintendo Q4 profit up, but sees decline ahead

* Profit forecast below market estimates, Wii sales slow
Source: RSS feed - channel BNewsBusiness | 6 May 2010 | 2:50 am

Fears of Greek contagion sweep global markets

ATHENS/BERLIN (Reuters) - Greece's economic crisis sent shivers of fear through global markets on Thursday as investors and policymakers feared it could spread like wildfire through Europe and beyond.



Source: Reuters: Business News | 6 May 2010 | 2:49 am

Greek concerns dent Japan shares

Japanese shares fall sharply as worries continue over the Greek debt crisis and whether it will hit other European countries.
Source: BBC News | Business | World Edition | 6 May 2010 | 2:45 am

Iraq puts 3 natural gas fields up for bid

Iraq's oil minister on Thursday invited international energy companies to bid for contracts to develop three untapped natural gas fields. Hussain al-Shahristani expressed confidence in...
Source: RSS feed - channel BNewsBusiness | 6 May 2010 | 2:45 am

Pitch perfect

Footballer shows language learning can boost career
Source: BBC News | Business | World Edition | 6 May 2010 | 2:42 am

Diageo sales boosted by emerging markets

Diageo, the world's biggest spirits group, beat forecasts with a big sales rebound in the first three months of 2010 on Thursday as the recovery kicked in led by strong emerging market growth.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 6 May 2010 | 2:41 am

TABLE-India Dr Reddy's Jan-March net rises 62 pct

(Versus the same period a year earlier, in billion rupees unless stated)
Source: RSS feed - channel BNewsBusiness | 6 May 2010 | 2:37 am

Morrisons suffers sharp slowdown in sales growth

Wm Morrison, the British supermarket group which has been one of the winners from the recession, reported a sharp slowdown in sales growth as raw material prices tumbled.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 6 May 2010 | 2:33 am

Senate Financial Reform Plans Can’t Address Short Term Trouble

The Senate has voted 96 to 1 in favor of a program that prevents the use of government funds to bailout large financial firms the way that the TARP fund did. At the same time, many Senators have proposed that the government should be able to “liquidate” troubled firms if their collapse would cause a systematic [...]

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Source: 24/7 Wall St. | 6 May 2010 | 2:31 am

Currencies: Euro tumbles to new 14-month low vs. dollar

The euro sank to a new 14-month low against its U.S. counterpart in Asian trading Thursday, on continuing fears that sovereign-debt woes in southern Europe will spread.



Source: MarketWatch.com - Top Stories | 6 May 2010 | 2:28 am

Asian stock markets tumble on Europe debt woes (AP)

Pedestrian are reflected in the electric stock board of a securities firm in Tokyo, Thursday, May 6, 2010. Japan's Nikkei 225 stock average plunged 3.2 percent to 10,710.02 on Thursday morning in the first business day after the 'Golden Week' holidays. (AP Photo/Koji Sasahara)AP - Asian stocks plunged Thursday as fears Greece's debt crisis will spread to other European countries and undermine the global recovery continued to rattle markets. Shares in Europe rebounded from early losses.



Source: Yahoo! News: Stock Markets News | 6 May 2010 | 2:27 am

Irish, Scottish airports reopen as ash heads west

All airports in Scotland and Ireland reopened Thursday after the latest engine-wrecking ash cloud from Iceland's volcano drifted west back into the Atlantic. The latest threat from...
Source: RSS feed - channel BNewsBusiness | 6 May 2010 | 2:26 am

BNP Paribas' profit soars 47%, beating estimates

French banking group BNP Paribas SA said Thursday its first-quarter net profit climbed a stronger-than-forecast 47%, as it benefited from the contribution of assets acquired from Fortis last year.



Source: MarketWatch.com - Top Stories | 6 May 2010 | 2:23 am

Morrison's sales slow on elimination of inflation

Shares in Wm Morrison fell by 3.3 per cent today after the supermarket chain blamed the "virtual elimination" of food inflation for like-for-like sales growth of 0.8 per cent.


Source: Latest Business News from Times Online | 6 May 2010 | 2:19 am

Airports open after ash closures

Airports across the UK have reopened after a number were closed by volcanic ash from Iceland.
Source: BBC News | Business | World Edition | 6 May 2010 | 2:17 am

UPDATE 1-India's Patni in sale talks with NTT, L&T -sources

* Japan's NTT Data, L&T Infotech, Fujitsu potential buyers
Source: RSS feed - channel BNewsBusiness | 6 May 2010 | 2:05 am

The World’s Most Important Bond Investor Calls Ratings Agencies As Flawed

Bill Gross, the head investment officer of bond giant PIMCO and the most famous fixed-income investor in the world, dismissed Moody’s (NYSE: MCO) and S&P as deeply flawed arbiters of investment risk. In his monthly letter he said “Such services, however, while necessary in the ongoing scheme of financial regulation, are overpriced as well as subject to [...]

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Source: 24/7 Wall St. | 6 May 2010 | 2:00 am

Greek crisis sends global markets tumbling

Concerns that Greece’s debt crisis may be in danger of engulfing other European economies sent global markets tumbling today and pushed the euro down to a new year-low against the dollar.


Source: Latest Business News from Times Online | 6 May 2010 | 1:52 am

Athens protests erupt into violence

Three people have died in a blaze triggered by a fire-bomb tossed into a bank during a march by tens of thousands of striking Greek workers protesting against austerity plans
Source: Financial Times - US homepage | 6 May 2010 | 1:42 am

Earnings Watch: Updates, advisories and surprises

A roundup of the latest corporate earnings reports and what companies are saying about future quarters.



Source: MarketWatch.com - Top Stories | 6 May 2010 | 1:31 am

Senate backs plan attacking "too big to fail"

WASHINGTON (Reuters) - The U.S. Senate made progress on a financial regulation reform bill on Wednesday, approving two amendments aimed at preventing a repeat of the massive taxpayer bailouts of Wall Street in 2008.



Source: Reuters: Business News | 6 May 2010 | 1:28 am

Bacteria identified in Tylenol recall

The Food and Drug Administration confirmed Wednesday that the bacteria found at the Johnson & Johnson plant that produced the recalled children's medicines was Burkholderia cepacia, a bacteria often resistant to common antibiotics.
Source: Business and financial news - CNNMoney.com | 6 May 2010 | 1:27 am

Media Digest 5/6/2010 Reuters, WSJ, NYTimes, FT, Bloomberg

MarketWatch: Asia shares were off by 2%. Reuters:   Riots against austerity measures continued n Greece. Reuters:   US regulators want to increase supervision of broadband. Reuters:   The Fed’s Rosengren says rates must stay low. Reuters:   Greece’s problems offset good economic news in the market. Reuters:   Facebook privacy problems exposed some private data. Reuters:   Sprint (NYSE: SYMC) [...]

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Source: 24/7 Wall St. | 6 May 2010 | 1:19 am

The real euro story: U.S. is back

Investors are acting like college students eager to take that quintessential backpacking adventure before joining the real world. They are obsessed with Europe.
Source: Business and financial news - CNNMoney.com | 6 May 2010 | 1:17 am

Fear index hits highest level in 3 months

Wall Street's key volatility measure hit a more than three-month high Wednesday on fears of a European debt crisis and slowing global growth.
Source: Business and financial news - CNNMoney.com | 6 May 2010 | 1:16 am

Bundled Isas under fire

Savers seeking the best interest rates on their money risk being sold unsuitabe investments by banks and building societies.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 6 May 2010 | 1:08 am

Eurozone tremors rock Asian shares (AFP)

A stock broker near the daily graph of the German share index at the stock exchange in Frankfurt on May 5. Markets have increasingly lost confidence in the future for the eurozone, with the outlook worsening after deadly riots in Athens and mounting fears that other European nations could be facing similar financial risks.(AFP/DDP/Thomas Lohnes)AFP - Fears that the eurozone debt crisis will spread continued to take their toll on Asian markets Thursday, as stocks fell and the euro hovered near one-year lows following deadly riots in Greece.



Source: Yahoo! News: Stock Markets News | 6 May 2010 | 1:03 am

Remortgage Q&A

With cracks appearing in the housing market now may be a good time to switch your home loans.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 6 May 2010 | 1:00 am

Senate OKs ban on use of taxpayer funds in bank bailouts

Amendment by Sen. Barbara Boxer to the financial overhaul bill gets bipartisan backing. In a hard-won compromise, the Senate also drops a proposed $50-billion fund to cover costs of liquidating firms...
Source: RSS feed - channel BNPaperBusiness | 6 May 2010 | 1:00 am

Electus is building a multimedia studio for the 21st century

Jordan Hoffner, former head of content partnerships at YouTube, discusses his new venture with TV producer Ben Silverman. One of their first efforts is 'Pedro & Maria,' a bilingual telenovela for MTV.

When Jordan Hoffner left YouTube last fall, the former head of content partnerships had just begun forging deals with Hollywood studios to provide television and movie clips to the Internet video giant.



Source: L.A. Times - Business | 6 May 2010 | 1:00 am

Ford is thinking big with its little Fiesta

This new, youth-targeted take on an old car seems to have hit the sweet spot of fuel economy and up-to-the-minute technology, wrapping it all in a wash of electrifying colors. ...
Source: RSS feed - channel BNPaperBusiness | 6 May 2010 | 1:00 am

Bear Stearns' former CEO defends practices while saying bank's 'leverage was too high'

James Cayne, testifying at a federal hearing, says that the firm didn't see the market disruption coming and that nothing could be done short of selling the firm when the crisis hit.

Former executives at Bear Stearns sought Wednesday to blame the Wall Street firm's 2008 collapse on an unpreventable "run on the bank" by customers, but an ex-chief executive told lawmakers that the firm had taken on too much risk with excessive borrowing.



Source: L.A. Times - Business | 6 May 2010 | 1:00 am

Media mogul launches Saban Brands

Media mogul Haim Saban wants to become a brand mogul, too.
Source: RSS feed - channel BNPaperBusiness | 6 May 2010 | 1:00 am

Buick sales surge as its buyers get younger

General Motors plans to boost the number of vehicles under the brand, which sees purchases climb more than 50% through the first four months of the year.

Remember the "This isn't your father's Oldsmobile" advertising campaign? It was such a flop, General Motors Co. couldn't save the brand.



Source: L.A. Times - Business | 6 May 2010 | 1:00 am

Google gets a new look

Search results page includes a new column of navigation tools, matching rivals Yahoo, Bing and others. Google...
Source: RSS feed - channel BNPaperBusiness | 6 May 2010 | 1:00 am

Media mogul launches Saban Brands

Media mogul Haim Saban wants to become a brand mogul, too.



Source: L.A. Times - Business | 6 May 2010 | 1:00 am

Bear Stearns' former CEO defends practices while saying bank's 'leverage was too high'

James Cayne, testifying at a federal hearing, says that the firm didn't see the market disruption coming and that nothing could be done short of selling the firm when the crisis hit. ...
Source: RSS feed - channel BNPaperBusiness | 6 May 2010 | 1:00 am

WellPoint rates face new scrutiny from state and federal officials

The move to investigate the health insurer's premiums follows an insurance consultant's report that the firm used flawed methods to justify hikes in California, which were canceled.

State and federal officials moved Wednesday to investigate insurance giant WellPoint Inc.'s massive rate hikes in California, saying the company may have used inaccurate or faulty information to justify increases it canceled last week.



Source: L.A. Times - Business | 6 May 2010 | 1:00 am

Ford is thinking big with its little Fiesta

This new, youth-targeted take on an old car seems to have hit the sweet spot of fuel economy and up-to-the-minute technology, wrapping it all in a wash of electrifying colors.

Whether it's date night at the El Pollo Loco or trading clothes at a swap, it's never been so hip to live econo. Now Ford is hoping to capitalize on the trend with a new take on an old car designed for the fashionably frugal — and young.



Source: L.A. Times - Business | 6 May 2010 | 1:00 am

Buick sales surge as its buyers get younger

General Motors plans to boost the number of vehicles under the brand, which sees purchases climb more than 50% through the first four months of the year. ...
Source: RSS feed - channel BNPaperBusiness | 6 May 2010 | 1:00 am

Google gets a new look

Search results page includes a new column of navigation tools, matching rivals Yahoo, Bing and others.

Google Inc.'s search results page, one of the most sought-after addresses on the Web, is getting a major makeover.



Source: L.A. Times - Business | 6 May 2010 | 1:00 am

WellPoint rates face new scrutiny from state and federal officials

The move to investigate the health insurer's premiums follows an insurance consultant's report that the firm used flawed methods to justify hikes in California, which were canceled. ...
Source: RSS feed - channel BNPaperBusiness | 6 May 2010 | 1:00 am

Hispanics' unemployment rate soars

The recession hits hardest in industries and regions where Hispanic workers are disproportionately represented, a congressional report shows.

Unemployment among Hispanics in the U.S. has soared since the recession hit because those workers are disproportionately employed in industries and regions hardest hit by the downturn, according to a congressional report released Wednesday.



Source: L.A. Times - Business | 6 May 2010 | 1:00 am

State sues 2 former CalPERS officials

Federico Buenrostro Jr. and Alfred Villalobos are accused of engaging in a scheme to win pension business for investment firms that involves improper gifts. Villalobos' bank accounts are frozen.

State authorities sued former top California pension fund officials Federico Buenrostro Jr. and Alfred R. Villalobos on Wednesday for their role in an alleged scheme to get business for investment firms by giving pension officials luxury trips and other gifts.



Source: L.A. Times - Business | 6 May 2010 | 1:00 am

Electus is building a multimedia studio for the 21st century

Jordan Hoffner, former head of content partnerships at YouTube, discusses his new venture with TV producer Ben Silverman. One of their first efforts is 'Pedro & Maria,' a bilingual telenovela for MTV...
Source: RSS feed - channel BNPaperBusiness | 6 May 2010 | 1:00 am

Hispanics' unemployment rate soars

The recession hits hardest in industries and regions where Hispanic workers are disproportionately represented, a congressional report shows. ...
Source: RSS feed - channel BNPaperBusiness | 6 May 2010 | 1:00 am

Home owners looking to remortgage 'should act fast'

With cracks appearing in the housing market now may be a good time to switch your home loans.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 6 May 2010 | 12:59 am

Business Bullet: Asia, Sterling, Pru, Morrisons

The latest news on: Asia, Sterling, Pru, Morrisons
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 6 May 2010 | 12:59 am

Wealth workout: the best savings deals

Despite providers' best efforts to attract savers into longer-term deals, for most this wisely isn't an option.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 6 May 2010 | 12:59 am

Solar panels: a tax-free return of 10pc pa

Is a tax-free, index-linked return of 10pc a year too good to be true?
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 6 May 2010 | 12:59 am

Greece debt crisis unsettles Asian markets

Asian stock markets fell sharply on Thursday as fears Greece's debt crisis will spread to other European countries and undermine the global recovery continued to rattle investors.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 6 May 2010 | 12:19 am

Air China sees tax-saving boost to profit

China’s top airline will get a retroactive bump to its 2009 profit, thanks to a new tax exemption for the transport sector.



Source: MarketWatch.com - Top Stories | 6 May 2010 | 12:10 am

NZ shares down despite good news

The New Zealand sharemarket's benchmark index fell to a near seven week low today as investors focused on the implications of the Greek debt crisis even though the economic news in New Zealand was positive.The NZ dollar surged...
Source: nzherald.co.nz - Business | 6 May 2010 | 12:09 am

Peter Brimelow: Bouncing Baby Boomer says we're not done

Stocks may be staggering, but one bullish letter remains calm, basically, writes Peter Brimelow.



Source: MarketWatch.com - Top Stories | 6 May 2010 | 12:06 am

NZ dollar surges upward

The New Zealand dollar surged today when a stunningly low unemployment figure and a speech by the Reserve Bank of New Zealand (RBNZ) Governor Alan Bollard left investors in no doubt that the official cash rate will rise in June.New...
Source: nzherald.co.nz - Business | 6 May 2010 | 12:04 am

Telecom set to report earnings slump - analyst

Telecom, which is threatened with loss of dominance from the government's roll-out of ultra-fast broadband, is likely to post a slump in third-quarter earnings tomorrow on costs of its XT network outages.The Auckland-based phone...
Source: nzherald.co.nz - Business | 5 May 2010 | 10:44 pm

Monster U.S. online jobs index up 3rd straight month

NEW YORK (Reuters) - A gauge of online demand for labor in the United States rose in April for a third straight month and posted its largest year-on-year percentage gain since July 2007, a private research group said on Thursday.



Source: Reuters: Business News | 5 May 2010 | 10:32 pm

3 Stocks With Big Dividend Boosts (Screens)

Hough: These companies recently raised their quarterly payments a lot.



Source: SmartMoney.com | 5 May 2010 | 10:00 pm

Argentine Senate passes reserves bill

The approval allows the government to use $4.3bn in foreign currency reserves to pay off debt and is a victory President Cristina Fernández, allowing her to continue increasing government spending
Source: Financial Times - US homepage | 5 May 2010 | 9:19 pm

Accountant tells court of loan suspicions

The accountant who reviewed Bridgecorp's prospectus was suspicious that a loan made to Barcroft Holdings was a related party loan, but did not have the evidence to support it, the Auckland District Court was told today.The $76...
Source: nzherald.co.nz - Business | 5 May 2010 | 9:10 pm

Health care law's massive, hidden tax change

An all-but-overlooked provision of the health reform law is threatening to swamp U.S. businesses with a flood of new tax paperwork.
Source: Business and financial news - CNNMoney.com | 5 May 2010 | 9:00 pm

Nikkei slides on eurozone woes

The Japanese market caught up with falls in other markets as more signs emerged that fallout from the Greek debt crisis may spread to other European economies
Source: Financial Times - US homepage | 5 May 2010 | 8:56 pm

Blankfein: Goldman must recognize doubters

NEW YORK/WASHINGTON (Reuters) - Goldman Sachs Group Inc Chief Executive Lloyd Blankfein took responsibility for the bank's conduct during the financial crisis on a call with wealthy clients on Wednesday.



Source: Reuters: Business News | 5 May 2010 | 8:07 pm

Dollar surges on jobs stats, Bollard speech

The New Zealand dollar surged today when a stunningly low unemployment figure and a speech by the Reserve Bank of New Zealand Governor Alan Bollard left investors in no doubt that the official cash rate will rise in June.New...
Source: nzherald.co.nz - Business | 5 May 2010 | 7:55 pm

SEC looks at Berkshire disclosure on Burlington: report (Reuters)

Reuters - The Securities and Exchange Commission is looking into disclosures made by billionaire investors Warren Buffett's Berkshire Hathaway Inc (BRKa.N) as it sought to purchase Burlington Northern Santa Fe Corp, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
Source: Yahoo! News: Stock Markets News | 5 May 2010 | 7:44 pm

SEC looks at Berkshire disclosure on Burlington: report

NEW YORK (Reuters) - The Securities and Exchange Commission is looking into disclosures made by billionaire investors Warren Buffett's Berkshire Hathaway Inc as it sought to purchase Burlington Northern Santa Fe Corp, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.



Source: Reuters: Business News | 5 May 2010 | 7:44 pm

Japan's Nikkei index sinks amid Greek woes (AFP)

A passer-by is reflected in the window of a a securities company in Tokyo. Japanese share prices fell 3.2 percent Thursday as investors returned to the market following a long holiday break, during which global worries over Greece's debt crisis intensified.(AFP/File/Toshifumi Kitamura)AFP - Japanese share prices dived more than 3.2 percent Thursday as investors returned to the market following a long holiday break with global worries over Greece's debt crisis intensifying.



Source: Yahoo! News: Stock Markets News | 5 May 2010 | 7:31 pm

Commission warns against unsolicited St Laurence offer

The Securities Commission is warning debenture holders in St Laurence Finance to be wary of an unsolicited offer to buy their debentures at 8c in the dollar.Receivers were appointed to St Laurence last month. About 9000 investors...
Source: nzherald.co.nz - Business | 5 May 2010 | 6:29 pm

Fed's Rosengren: Ultra-low rates still needed

NEW YORK (Reuters) - The economy is showing signs of improvement but the recovery still has a long way to go and ultra-low interest rates are still needed, a top Federal Reserve official said on Wednesday.



Source: Reuters: Business News | 5 May 2010 | 6:29 pm

Big firms consider dropping health benefits

Confidential documents show one impact of health care reform is that companies are seriously considering dropping health care coverage for their employees.
Source: Business and financial news - CNNMoney.com | 5 May 2010 | 6:21 pm

Goldman chief reaches out to wealthy clients

Lloyd Blankfein sounds chastened in an unusual private call to well-heeled customers as the company tries to shore up its image after being sued by the SEC.

Goldman Sachs Group Inc.'s chief executive, Lloyd Blankfein, struck a chastened tone in an unusual private call with wealthy clients Wednesday as the company embarks on a campaign to shore up its image in the wake of government and shareholder attacks.



Source: L.A. Times - Business | 5 May 2010 | 6:20 pm

Pay is frozen ‘for one in three’, says Incomes Data Services survey

Pay freezes and the rising cost of living mean that almost a third of workers are enduring reduced income, according to a survey by Incomes Data Services.


Source: Latest Business News from Times Online | 5 May 2010 | 6:05 pm

Fate of the nation: will election day save Britain?

General election day is a celebration of democracy. And on one of those rare election days — there have been only two in the past thirty years — when a change of government seems possible, it can feel like a day of liberation. Today, however, feels very different. The mood is sombre. And we will all exercise our democratic right with an unusual weight of responsibility.


Source: Latest Business News from Times Online | 5 May 2010 | 6:02 pm

BA ‘price-fix’ trial is halted for third time

The trial of four British Airways executives accused of criminal price-fixing was postponed for the third time yesterday.


Source: Latest Business News from Times Online | 5 May 2010 | 6:01 pm

Macmillan banned by World Bank over Sudan bribes

Macmillan has been banned by the World Bank from taking up contracts financed by the bank for six years after it admitted paying bribes to secure a deal to supply textbooks in Sudan.
Source: Latest Business News from Times Online | 5 May 2010 | 6:01 pm

British bankers trapped in Bahrain for ten months

Three British bankers have been unable to leave Bahrain for ten months after being placed under investigation in relation to the collapse of a Saudi bank.


Source: Latest Business News from Times Online | 5 May 2010 | 6:01 pm

M&S finance chief Ian Dyson quits as new boss joins

Marks & Spencer was rocked last night by the abrupt resignation of Ian Dyson as its finance and operations director less than 48 hours after Marc Bolland started as his new boss.


Source: Latest Business News from Times Online | 5 May 2010 | 6:01 pm

Bear Stearns: ‘A big, fat bank goose about to be eaten alive’

Bear Stearns was a “big fat goose” that was torn apart by hedge fund wolves, the bank’s former chief executive said yesterday.
Source: Latest Business News from Times Online | 5 May 2010 | 6:01 pm

White House unveils push on broadband rules

The Obama administration handed Google and other web content providers a significant victory as it announced that cable and telecommunications companies would face tough new regulations on how they manage their high-speed internet networks
Source: Financial Times - US homepage | 5 May 2010 | 5:49 pm

Questor share tip: Buy Dechra Pharmaceuticals

Shares in veterinary products group Dechra have been very volatile over the past few months. The shares were removed from the FTSE 250 in March, prompting index trackers to sell them.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 5 May 2010 | 5:46 pm

Write-Offs: 05.05.10



$$$ Fabrice Tourre: Gaining Cred On Wall Street [Newsweek]

$$$ Donald Trumps Scam School Gets Sued [Gawker]

$$$ Gotham’s New Davos Man [NYO]

$$$ Feds Say SpongeTech Claims Are All Wet [FINalternatives]



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Source: Dealbreaker | 5 May 2010 | 5:41 pm

Freddie Mac needs another $10.6 billion

Freddie Mac on Wednesday requested another $10.6 billion handout from the federal government.
Source: Business and financial news - CNNMoney.com | 5 May 2010 | 5:33 pm

NZ sharemarket down amid Greek debt turmoil

The New Zealand sharemarket's benchmark index fell to a six-week low in early trading today as more signs emerged that fallout from the Greek debt crisis could spread to bigger European economies.Around 10.15am the NZX-50 index...
Source: nzherald.co.nz - Business | 5 May 2010 | 5:06 pm

Kingfisher Raised to `Buy', Double-Take Cut to `Hold': Audio


Source: Bloomberg - All Podcasts | 5 May 2010 | 5:01 pm

Tobacco giant in IRD tax probe

The Inland Revenue Department is investigating transactions by the New Zealand arm of global tobaco giant British and American Tobacco as it pushes home the advantage created by its win over tax avoidance by foreign-owned New Zealand...
Source: nzherald.co.nz - Business | 5 May 2010 | 5:00 pm

BlackRock Pursuing Retirement Plans Under $50 Million: Audio


Source: Bloomberg - All Podcasts | 5 May 2010 | 5:00 pm

Logitech Raised to `Hold', Kaydon Cut to `Hold': Audio


Source: Bloomberg - All Podcasts | 5 May 2010 | 4:56 pm

Schwab Investment ETF Assets Surpass $1 Billion: Audio


Source: Bloomberg - All Podcasts | 5 May 2010 | 4:54 pm

Prudential delays $21bn rights issue

The UK insurance group delays publication of the prospectus for its $21bn rights issue designed to fund its acquisition of AIA after failing to convince UK regulators that it would have enough capital after the takeover
Source: Financial Times - US homepage | 5 May 2010 | 4:47 pm

Freddie Mac posts loss, sees need for state funds

WASHINGTON/NEW YORK (Reuters) - Freddie Mac , the second-largest provider of residential mortgage funds, on Wednesday said it lost $8.0 billion in the first quarter and warned that it would continue to need government funds because the housing market remains fragile.



Source: Reuters: Business News | 5 May 2010 | 4:35 pm

White Castle unveils burger-scented candle

What better way to celebrate National Hamburger Month than with the aroma of a greasy White Castle burger? With the fast food chain's new scented candle, burger lovers can now enjoy the smell of sliders and onions all day long.
Source: Business and financial news - CNNMoney.com | 5 May 2010 | 4:33 pm

Summary Box: Stocks extend slide on Greece fears (AP)

AP - ANOTHER SLIDE: The Dow Jones industrials lost 59 points Wednesday on continued jitters about whether a bailout for debt-strapped Greece will be sufficient. The Dow has fallen 284 points in two days, the steepest slide in three months.
Source: Yahoo! News: Stock Markets News | 5 May 2010 | 4:17 pm

Euro Bailout, Trucking, Market Sell-off, Sara Lee: Taking Stock


Source: Bloomberg - All Podcasts | 5 May 2010 | 4:09 pm

Don't let Downing Street call the shots, ma'am

Just possibly, Friday could be the Queen's big moment, her 15 minutes of tearful X Factor fame. All those years of training in diplomacy and public affairs and all that hob-nobbing with presidents and...
Source: RSS feed - channel BNPaperBusiness | 5 May 2010 | 4:07 pm

Ex-Bear Stearns CEOs defend failing firm's conduct (AP)

Former Bear Stearns Chief Executive Officers James Cayne, left, and Alan Schwartz, testify on Capitol Hill in Washington, Wednesday, May 5, 2010, before the Financial Crisis Inquiry Commission. (AP Photo/Harry Hamburg)AP - James Cayne, who led Bear Stearns for 15 years, and his successor defended the conduct of the Wall Street firm against members of a special panel who were skeptical that uncontrollable outside forces were to blame for its demise two years ago.



Source: Yahoo! News: Stock Markets News | 5 May 2010 | 4:04 pm

NZ economy trucking again: Bollard

Reserve Bank Governor Alan Bollard says New Zealand's recovery from the global financial crisis was entering a "new, less fragile stage" but the bank will keep its "foot on the gas" to keep the economy growing."Overall, we are...
Source: nzherald.co.nz - Business | 5 May 2010 | 4:00 pm

Stocks extend decline on European debt worries (AP)

Specialist Mario Picone at his post on the floor of the New York Stock Exchange Wednesday, May 5, 2010. (AP Photo/Richard Drew)AP - The stock market extended its slide Wednesday after investors couldn't shake their concerns about European countries' big debt loads.



Source: Yahoo! News: Stock Markets News | 5 May 2010 | 3:59 pm

Cinco De Mayo: Great Moments In Sovereign Defaults

By Jacob Goldstein

Speaking of sovereign debt crises: Happy Cinco de Mayo!

Our blog post begins in 1861, when President Benito Juarez said Mexico would temporarily suspend payments on its foreign debts. As the IMF hadn't been invented yet, Britain, Spain and France responded by invading Mexico.

On the whole, it did not go well for Mexico: The French wound up conquering the nation and installing an emperor.

But along the way, the Mexicans won a great victory at the Battle of Puebla on May 5, 1862. That's the cinco de mayo in Cinco de Mayo.

The emperor, by the way, was deposed and executed in 1867. That year, Mexico repudiated its foreign debts altogether.

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Source: NPR Blogs: Planet Money | 5 May 2010 | 3:40 pm

Senate OKs 'too big to fail' bank amendment

The Senate overwhelmingly passed its first major change to the Wall Street reform package Wednesday, approving a bipartisan deal to unwind big financial firms that are considered too big to fail.
Source: Business and financial news - CNNMoney.com | 5 May 2010 | 3:37 pm

Another Rough Day for ETFs and Stocks (Daily ETF Wrap-Up)

Contagion fears from Europe infect U.S. markets again.



Source: SmartMoney.com | 5 May 2010 | 3:35 pm

World shares tumble on Portugal downgrade fears

Stocks tumbled in both Europe and the US after Moody's Investors Service said it might cut Portugal's credit rating for the first time, a sign that contagion from the Greek crisis was spreading.Overnight Moody's placed its Aa2...
Source: nzherald.co.nz - Business | 5 May 2010 | 3:30 pm

Day 30: A Bunch Of Idiot Traders Drop By The Office And Steve Hisses At Them And Pisses In Their General Direction



Early last week, we were alerted to a message board containing a comment by a woman who accosted Bill Ackman at a recent General Growth Properties hearing. In it, she recounted their meeting and although perhaps mentally unstable, had a genius idea on her hands. Here is the relevant text:

“I waited Till Mr. Ackman was not talking to anyone, and shook his hand and told him he was one of my heros. He asked me who I was and I said I was a proud tenant and Artist at the South Street Seaport, and prould shareholder. He said I looked like a Artist, I told him thats what people said last time I was in GGP’s hearing. I told him the next German Shepard dog I get I will name him Bill Ackman, and the last German Shepard I had was named Warren Buffet [ all true ] I told him that I used to get cards from my Vet that said Warren Buffett needed his rabies and distemper shots.I told him I would send him the cards about Bill Ackman dog for his shots. He laughed and I feel I amused him, slightly charmed him and was slightly foolish. LOL!!!

Obviously, we were inspired and immediately dispatched someone to purchase a fluffy white cat for the Dealbreaker office. We named it after our favorite hedge fund manager and moving forward, will be providing you with daily updates of our time together. Here’s how life with Stevie has been going so far.

Day 1: Came into the office today and was dismayed to see that our fur baby had mistaken my keyboard for his litter box. Bad Stevie.

Day 3: I’ve always said I wasn’t going to be one of those owners who dressed up her pet. Nevertheless, despite having a thick coat, Stevie looked a little chilly today (we keep the temperature at 69 degrees Fahrenheit to make sure no one dozes off) so I put him in a fleece jacket made specially for cats. He has never looked happier.

Day 7: I’m becoming one of those owners who sends people pictures of their cats, as though anyone cares. Unfortunately, Stevie seems to hate having his picture taken and I was only able to get two this morning before he hissed at me and ran away. Later, he stole my keys and wouldn’t give them back until I showed him that I’d deleted photos.

Day 10: Knowing that I can’t be the only one who finds Stevie devastatingly handsome, I entered him in to the Cat Fanciers’ Association (CFA) annual cat show. I just know we’re gonna win big.

Day 14: This afternoon I put Stevie in his carrier and brought him with me to a meeting at a hedge fund called Ping Capital. The founder asked if he could hold him and said that having his own pussy, he had some cat clothes laying around and would we like this dress for Stevie? I told him I think it’s abusive and cruel to dress up animals and besides, Stevie is a boy cat (maybe he thought we’d named it after S. Nicks?) but he claimed that didn’t matter. “He’ll look great in it,” Ping said, licking his lips. He was also very interested to hear if we’d be having Stevie neutered. He kept insisting we had to do it, saying Stevie would be a better behaved cat for it. Maybe I’m being paranoid but the way he kept pressing the issue made me extremely uncomfortable. We’re never going back there.

Stay tuned.



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Source: Dealbreaker | 5 May 2010 | 3:29 pm

Stocks Climb Back but Close Down (Market Update)

Greek debt woes start subsiding, but indexes finish in the red.



Source: SmartMoney.com | 5 May 2010 | 3:22 pm

In Brokerage Price War, Small Firms May Suffer

Vanguard's latest move could leave smaller companies in the lurch.



Source: SmartMoney.com | 5 May 2010 | 3:19 pm

Tim Geithner Has Some Fans!



He likely plied them with free Beast the night before but this still counts!

Geithner stepped onto a stage last week in Milwaukee, where unemployment is about 12 percent, and told 200 cheering college students that “it is excellent to be away from Washington.” “I didn’t really even know Secretary Geithner before the event,” said Allen Brown, 23, a senior from Germantown, Wisconsin, who is majoring in marketing. “He was very impressive” and “reiterated the point very well” that a regulatory revamp is needed.

Of course, he still has some detractors but whatevs, haters gonna hate. Plus, this kid wants to work in HR when he grows up. He’s being trained to hate life and make you want to hate life, too.

Zach Wambold, a 21-year-old from Watertown, Wisconsin, who’s studying human resources management and political science, said Geithner “didn’t offer as much to show his expertise in the field as he could have.”



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Source: Dealbreaker | 5 May 2010 | 3:13 pm

In Mutual Funds, a New Appetite for Risk (On the Street)

Inflows to stock funds this year have already exceeded 2009's total.



Source: SmartMoney.com | 5 May 2010 | 3:12 pm

Chris Cox Concedes Brooksley Born was Right About Derivatives



Brooksley Born, former head of the CFTC and now a member of the Financial Crisis Inquiry Commission, finally had her chance to stick it to Chris Cox.

Born, remember, was the only member of the President’s Working Group on Financial Markets in 1998 to call for comprehensive regulation of OTC derivatives like credit default swaps.

Cox, then a member of Congress and the chairman of the Task Force on Capital Markets, vehemently opposed the regulation as did Alan Greenspan, Larry Summers and Robert Rubin. Well, we know what kind of havoc unregulated OTC derivatives have caused since then.

Cox, testifying today in front of the FCIC, conceded it was probably a turf battle between the SEC and the CFTC that caused him and others to completely write-off Brooksley’s suggestions. “I’ve had the chance to review the debates we had,” Cox told Born at the hearing. “There was a lot of pride of brand at both the CFTC and the SEC” and the failure to take Born seriously “flowed from an our team is better mentality.”

Cox also blamed turf battles between various Congressional committees for missing the chance to regulate OTC derivatives. “Congress was incapable of regulating on the subject,” he told the commission.



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Source: Dealbreaker | 5 May 2010 | 2:45 pm

Bomb probe reveals alleged links to Taliban

The Pakistani investigation into Faisal Shahzad, the confessed Times Square bomber, has revealed a network of links to Islamist groups and the Taliban, Pakistani officials signalled
Source: Financial Times - US homepage | 5 May 2010 | 2:23 pm

Google Regains on Search Share Loss (GOOG, MSFT, YHOO, IACI)

Google Inc. (NASDAQ: GOOG) got its mojo back.  In March, the world’s dominant search engine managed to slip under the 70% share mark for the first time since June 2008.  In month of April, month all three major Google competitors  Yahoo! Inc. (NASDAQ: YHOO), Microsoft Corporation (NASDAQ: MSFT) and even IAC/InteractiveCorp. (NASDAQ: IACI) lost ground, [...]

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Source: 24/7 Wall St. | 5 May 2010 | 2:13 pm

The dark side of Chinese adoptions

When Americans adopt babies from China, most assume they've been abandoned. But a scandal in 2005, in which 6 orphanages were found to be buying babies, threw that in doubt. Scott Tong reports that baby selling may be more widespread.
Source: Marketplace | 5 May 2010 | 1:44 pm

Moody’s changes outlook on BP to negative

The outlook for BP’s credit has been revised to negative by Moody’s to reflect the possible impact of its oil spill in the Gulf of Mexico
Source: Financial Times - US homepage | 5 May 2010 | 1:39 pm

Lloyd Wants You to Brag About Being a Goldman Client



Goldman Sachs held a conference call for clients of the private wealth management unit this afternoon.

Lloyd Blankfein was on the call, as were several journalists who were no doubt leaked the call-in number and not thrown off as they usually are. As expected, the entire call seemed to be a nice advertisement for Goldman with Lloyd repeating most of what he said on Charlie Rose last week. This quote from the call pretty much sums it up:

“We don’t want people to just be happy to be with Goldman. We want them to be bragging.”

Tell that to IKB Deutsche Industriebank.



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Source: Dealbreaker | 5 May 2010 | 1:28 pm

Presented By:


Source: Dealbreaker | 5 May 2010 | 1:28 pm

Oil spill's impact on climate change bill

President Obama will dispatch a team of cabinet officials to look at the growing oil spill in the Gulf of Mexico. But back in Washington, the spill's fueling the political waters around prospects for a comprehensive energy and climate change bill. John Dimsdale reports.
Source: Marketplace | 5 May 2010 | 1:03 pm

Banks still playing with numbers

Members of the commission looking into the causes of the financial crisis thoroughly grilled former Bear Stearns executives. The commission was looking into how banks fudge their quality reports. Nancy Marshall Genzer reports that banks are still doing it.
Source: Marketplace | 5 May 2010 | 1:03 pm

Washington Post to sell Newsweek

The Washington Post has owned Newsweek since the 60s. But the newspaper's chairman says it's time to sell. Jeremy Hobson reports.
Source: Marketplace | 5 May 2010 | 1:03 pm

How Tennessee's coping with flooding

Kyle Young, director of the Country Music Hall of Fame, talks with Kai Ryssdal about how the hall and museum is recovering after severe flooding and how folks are holding up in Nashville.
Source: Marketplace | 5 May 2010 | 1:03 pm

It's time for the rebirth of regulation

Three companies have been in the news lately -- BP, Massey Energy, and Goldman Sachs -- and presumably their PR offices aren't exactly delighted. Commentator Robert Reich says there's a significant connection between the three and a long-term trend in Washington.
Source: Marketplace | 5 May 2010 | 1:03 pm

Will posting calorie labels help?

A requirement in the health care law requires restaurants to post nutrition information in plain sight. The theory is that will help us make better food choices. Professor Dan Ariely talks with Kai Ryssdal about how what seems simple isn't always so.
Source: Marketplace | 5 May 2010 | 1:03 pm

Maybe That Whole 'Money Honey' Thing Was Trickier Than We Thought

By Jacob Goldstein

Yesterday's podcast was about all about our "Money Honey" saga. We applied to trademark the phrase, with big dreams of selling Planet Money Money Honey visors, then had our dreams crushed.

The part about actually filling out the trademark application was relatively minor -- or so we thought.

Ben Snitkoff, a lawyer who contributes to the blog Technically Legal, says we messed up on the application.

Under a rather unsettling headline -- Planet Money Committing Fraud on the USPTO? -- Snitkoff writes:

...it doesn't look like they filed an "Intent to Use" application. Rather, they filed an application where they must have represented that they already sold a hat or visor in commerce marked with the Money Honey brand.

It was a mistake! An honest mistake!

Snitkoff continues:

Since they admitted in the podcast that they haven't made or sold any yet, they must have lied to the Patent and Trademark Office when they said that they had sold it in commerce.

"Lied" is such an ugly word...

Snitkoff closes:

Please Note: This was done as an intellectual exercise. I harbor no ill will toward Planet Money, and do like their program a great deal.

Cold comfort.

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Source: NPR Blogs: Planet Money | 5 May 2010 | 12:50 pm

Take My Daughter: Confessions of a Chinese baby trafficker

Reporter Scott Tong shares the backstory of his report on the dark side of China's adoption system, including how one convicted baby trafficker offered to sell Scott his daughter during an interview.
Source: Marketplace | 5 May 2010 | 12:36 pm

7 Systemic Problems that are Killing America

This country is full of idiots, socialists, and rednecks. At least that’s what partisans will have you believe.

As long as you’re railing against the people you hate, you can’t see the reality behind the rhetoric. These problems go beyond Liberal or Conservative, Republican or Democrat. They’re serious enough to contribute to internal collapse. We dug up 7 systemic problems that have nothing to do with political parties, yet are still killing America.

Note: Kevin at National Strike Day, which happens May 10, 2010, contributed to this article.

Collapsing infrastructure


Image: Sanbeiji/Flickr

Recently, a drinking water supply line burst in Boston. Affected people had to boil water before drinking it.

Boiling drinking water sounds shocking today. But unless we update the country’s infrastructure, boiling water (and collapsed bridges and burst dams) will become weekly news.

The American Society of Civil Engineers’ 2009 report card tallies the hazard:

1,819 of the country’s dams are deficient “high hazard” dams (dams that will destroy buildings and kill people if they burst).
7 billion gallons of clean drinking water are lost per day through leaking pipes.
1 in 4 of the country’s bridges are either structurally deficient or functionally obsolete.
1/3 of the country’s roads are in poor or mediocre condition.

Combine that with natural disasters, like floods and earthquakes, and you have a nation constantly firefighting fallout from bad infrastructure. Infrastructure updates would prevent Katrina-sized outcomes. They’d keep our economy flowing, keep our water supply safe, and keep us looking like a developed country.

Loss of economic independence


Image: DaveFayram/Flickr

Right now, the rest of the world owns $3 trillion more of us than we own of them. -Warren Buffett in 2006

In 1979, manufacturing comprised 21% of the economy. In 2008, that number was 11.5%. One in six factory jobs disappeared between 2000-2007. When a factory goes away, it takes its supply chain, R&D, and other supporting companies with it. Richard McCormack writes that “one manufacturing job supports 15 other jobs. No other category of job has such a high multiplier.”

By outsourcing much of our manufacturing, we ended up relying on services to support the economy. It’s a precarious situation, especially since services are outsourceable, too. One Princeton economist says 40 million jobs could be shipped out in the next 10-20 years, including 1 out of 3 service jobs.

What have gained by transferring our manufacturing (and, by association, knowledge and wealth) to other countries? A massive trade deficit with 90 countries, for one. Consumers and companies don’t have a choice of where to buy products. They’re made abroad by default. If they were made here, they’d be prohibitively expensive, thanks to stringent regulatory requirements that the US doesn’t apply to goods produced elsewhere. It’s no wonder we’re a country that consumes more than it produces.

We have a trade imbalance of $232.5 billion with China alone. China produces most of the goods that American consumers buy. American companies offshore there because China is cheap and doesn’t have expensive regulations. Moreover, China owns an estimated $1 trillion in US Treasuries. Yet the US only makes up about 12% of China’s trading. If China drops the ball, we flounder. We’re forced to politically tap dance with China in order to maintain economic stability.

All of this makes us look more like a colony than a sovereign country.

The lobbyist industry

Ever get the feeling the government just isn’t listening to you? All you need to do to get a response is slip a couple million dollars into your Congressman’s pocket. Up the money tenfold, and you’ll probably get your own law. This is the power of lobbying in the US.

Politicians listen to you when they want your votes. Once they’re in office, the currency changes to cash. During the first 3 months of 2010 alone, lobbyists spent almost $1 billion to influence the government.

The four primary lobbying groups—health interests, business associations, energy companies and Wall Street firms—each spent more than $123 million lobbying during Q1 2010, according to Open Secrets. That’s $1.37 million per day. Last year, lobbyists spent almost $3.5 billion total, that we know of.

If lobbyists are lucky, they’ll get regulators drooling on their laps. The pharmaceutical industry, for example, legally pays the FDA to speed up the drug approval process. The FDA, which monitors labeling and drug safety, is basically paid to do what its main funder, the pharma industry, tells it to. No wonder consumers don’t usually find out about adverse drug effects until years later.

Few laws exist to put distance between politicians and lobbyists. Bribery is both systemized and legal. Meanwhile, lobbying reform has been minimal. Lobbying makes our claims to democracy look more like reality TV than truth.

Obesity


Image: Tobyotter/Flickr

Two-thirds of Americans are overweight or obese. 33% of children are obese. Nearly 50% of African-American and Hispanic women are overweight or obese. If you’re a suburbanite or sit in front of a computer for hours a day, you’re also at risk.

What gives? If you trace obesity back to its roots, you’ll come back to the waterbed that government and industry cavort on every night. The government pays $20 billion per year to subsidize agriculture. Feed grain, corn, and wheat are some of the biggest recipients. As a result of subsidies and scale, food made with refined grains, sugars, and beef is cheap. Consumers, short on time and money, can buy a “complete” meal for cheap.

If you’re a poor American, you’re more likely to buy cheap, bad-for-you food and grow obese. If you’re obese, you’re more likely to develop diabetes, cancer, and the host of other diseases that cost the US an estimated $100 billion per year.

If you can afford health insurance to treat those problems, great–the US insurance industry, including health insurance, owns $2 billion in stock in the country’s five biggest fast food companies. And if you feel insecure about your weight, there’s a $35 billion/year weight loss industry waiting to sell you temporary self-esteem.

The bottom line: Government subsidies help make fast food cheaper than healthy food. Poor people, women, and children are most likely to become obese. Lacking the resources, motivation, or know-how to stop eating the stuff that makes them obese, people turn to a gargantuan dieting industry for a quick fix. Insurance companies also don’t mind if you turn to their products when your weight makes you sick.

Maybe obesity is an epidemic, but some very important people aren’t arguing with it.

The revolving door


Image: Dan4th/Flickr

After their terms end, many politicians become lobbyists for the same corporations and industries they used to regulate. 43% of Congressman and Senators who left the government between 1998-2005 became lobbyists, according to one study.

These former politicians retain access to all of the Congressional and House amenities they had during their days on Capitol Hill. They can legally join their politician buddies in the House gym or Senate floor. Their companies are allowed to buy politicians fancy meals, gifts, and trips.

Many politicians later rotate back into government in a different role. Larry Summers, for example, is today’s Director of the National Economic Council. Before that, he was the managing director of D.E. Shaw & Co., a massive Wall Street hedge fund. Before that, he was Secretary of the Treasury. You see how this works.

National laws support the revolving door. Former policymakers can jump into corporate boardrooms and corporate executive leadership teams with no wait. After one year, they can contract for the military.

What if these laws were extended to five years, without loopholes? The poli-lobbyist club would be broken up, or at least seriously dented. Lobbying would lose some of its exclusivity and, as a result, some of its power. The words conflict of interest would once again enter our legal vocabulary.

Using personal funds for campaign purposes


Image: Saad Akhtar/Flickr

Back in the day, we elected a tailor (Andrew Johnson), a teacher (James Garfield), and several farmers to office.

Can you imagine that happening today? 44% of Congressman are millionaires. Senators had a median reportable net worth of $1.79 million in 2008. Mike Bloomberg alone spent more than $100 million dollars of his own money in the New York City mayoral race. Linda McMahon has stated she is prepared to spend $50 million of her own money in the Connecticut Senate race.

If you have to be personally wealthy to run for office, “poor” (read: non-millionaire) candidates hardly stand a chance. The result is a ruling class of rich, out-of-touch politicians.

No term limits

In the United States, presidents can only stick around for 8 years. But our other two branches of government, the legislative and judicial branches, can be around forever.

US Senators have an unlimited number of six-year terms. Congressmen can be elected to 2-year terms as long as they run. Supreme Court justices stay for life.

This system practically lays out the red carpet for oligarchy. Companies bribe build long-term lobbying relationships with politicians. In return, those politicians devise laws and exceptions benefiting those companies. Supreme Court justices do the same, often ruling in favor of corporations.

Our infinite terms have produced visionless, complacent back-scratchers instead of leaders. Why we don’t choose to limit House, Congress, and Supreme Court terms in a democracy is beyond comprehension.

If you’re inspired to take action, check out National Strike Day 2010, a nonpartisan citizen effort that happens on May 10, 2010.



Source: Business Pundit | 5 May 2010 | 12:13 pm

Who Could Take Over For Lloyd Blankfein?



First off, let it be known that I don’t think LB should or will go anywhere. Nevertheless there are some people, some haters, talking about that very possibility. Dick Bové said it a couple weeks ago but she was on the rag at the time and not to be taken seriously. Now there’s a story out today, hopefully based on vicious lies, that there are people within in Goldman Sachs– the same people who gave Lloyd a standing ovation the other day for beating Ginger the resident chicken at tic-tac-toe– who are daring to speak of a day in which LB’s golden scrot and shining pate do not run shit at 200 West.

They’re traitorous shrews, of course, who have no idea what they’re talking about but just for yuks, we’ll play their little game. So, in this messed up scenario in which LB leaves the building, who takes the reigns? I love him dearly and know for a fact he’s waiting for the call, but this is not happening for Corzine. The only possibilities that come to mind are Jay-Z (he’s already a client, no one could hate GS with J in charge, and he also fancies himself quite the business guru), Maxine Waters and Lucas van Praag (at the moment we’re only getting his restrained, abridged pearls of wisdom. Imagine a world in which he was uncensored). Now you go. Serious suggestions only please.



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Source: Dealbreaker | 5 May 2010 | 12:12 pm

Out of The Gulf, Devon’s Star Rises, BP Sinks Further

Executives at Devon Energy Corp. (NYSE:DVN) are probably congratulating themselves on their foresight this week. The company has spent the last year divesting itself of virtually all its assets in the Gulf of Mexico and internationally as it shifts its focus to shale gas and oil plays in North America. The company reported earnings this [...]

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Source: 24/7 Wall St. | 5 May 2010 | 12:05 pm

Bear Stearns chief blames market rumours for collapse

Bear Stearns’ former executives blamed market rumours for the demise of the investment bank in 2008, an event that marked a dramatic new phase in the financial crisis
Source: Financial Times - US homepage | 5 May 2010 | 11:59 am

Profile of a Chinese baby trafficker

Chinese baby traffickers argued they did the right thing. They took abandoned girls to orphanages, and now they have a better life. Yes, they profited. But as they described it, money encouraged them to do the right thing. Read their story.
Source: Marketplace | 5 May 2010 | 11:42 am

Meredith Whitney: The Banks Are Wrong On Housing





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Source: Dealbreaker | 5 May 2010 | 11:30 am

Athens Is Burning; Lisbon's On Watch

Three people were killed in the rioting in Athens today. Here's the scene outside parliament:

Also today:

Moody's said it's likely to downgrade its rating on Portuguese debt.

The euro kept falling, as did European stocks. Spain, which is set to sell some bonds tomorrow, will likely face rising borrowing costs.

At this point, it's hard to figure out where this whole thing ends.

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Source: NPR Blogs: Planet Money | 5 May 2010 | 11:14 am

Your thoughts on Chinese adoptions

Are you shocked to hear about China's questionable adoption practices? Read the reactions of some Americans who have adopted Chinese babies. And share your thoughts on Scott Tong's coverage of Chinese adoptions.
Source: Marketplace | 5 May 2010 | 10:33 am

Whitney, Levitt, Wyplosz, Atorino, Matus: Surveillance


Source: Bloomberg - All Podcasts | 5 May 2010 | 10:14 am

Oxford’s Tsang: Bloomberg On the Economy With Tom Keene


Source: Bloomberg - All Podcasts | 5 May 2010 | 10:12 am

Live-Blogging Cruel And Unusual Punishment: Cayne Dragged Before Meaningless Hearing On Second Favorite Day Of The Year



12:10 Sure, it would’ve been worse to do it on 4/20 but Cinco de Mayo? Still pretty mean.

12:12 This thing is set to get underway in a few minutes. While we wait, I have a ton of items on the “wish-list” but beyond the obvious, I really, really want him to act like a stoned 17 year old who just got busted. “I know my rights, man.” “I’ve read the constitution.”

12:20 LET’S DO THIS. Reading of the prepared statements. Incredibly, CNBC thinks interviewing the CEO of Nike is more important than Big Jim, so you can follow along here.

12:30: Alan Schwartz maintains that Bear was awash– nay, drowning– in liquidity days before it went down for the dirt nap.

12:32: Jim concedes, “in retrospect, in hindsight, leverage was a bit too high.”

12:41: Angelides: Could you have done anything to prevent that weekend in March?

Cayne: Nothing. There was nothing that could have been done. We were taken down by hedge funds. Bear Stearns [and these words seriously just exited JC's mouth] “was a big fat goose walking down the lane that’s about to be eaten up by competitors.”

Angelides: You were in Detroit that weekend, right? At a bridge tournament?

Cayne: That’s correct.

12:55 Schwartz: Equity was not the issue, man! Confidence was the issue!

12:58 Brooksley Born: Do you think maybe Bear Stearns was too big to manage? Maybe that’s why it failed?

Schwartz: No, it was the rumors.

1:03: Jimbo: “I have no opinion about this too big to fail thing.”

1:05: For C’s sake, can we get to the important questions already? i.e. is J seeing more seeds in his weed these days now that he’s a nobody?

1:10 Brooksley Born: What is this thing I’ve heard about “window-dressing” of the balance sheet at the end of the quarter? Can you explain that to me?

Schwartz: It was standard industry practice to make your balance sheet look better than it was. Basically.

Cayne: I don’t like the term ‘window-dressing.’ That implies some sort of skullduggery, which was not going on.

BB: Oh, oh, I wasn’t saying that, that’s just something I’ve heard other people say. I didn’t mean any disrespect to you Mr. Jim [batting of eye-lashes]

Cayne: I know you didn’t, sugar tits.

BB: [Coy grin]

New rule: take a hit every time Schwartz or Cayne says ‘rumors.’

1:23 Bill Thomas: Do you think it was unfair that the discount window wasn’t opened until after Bear was sold?

Cayne: [Whose decision to go with the wake 'n bake this morning has resulted in a serious mellow] I don’t know. That was their call.

(NB: This was Cayne’s answer to that question one year ago: Asked about Geithner’s comments and his decision regarding opening the discount window to Wall Street after Bear had been sold for $2 a share and not earlier, Jimmy Cayne became spitting angry.

“The audacity of that p— in front of the American people announcing he was deciding whether or not a firm of this stature and this whatever was good enough to get a loan,” he said. “Like he was the determining factor, and it’s like a flea on his back, floating down underneath the Golden Gate Bridge, getting a h—o-, saying, ‘Raise the bridge.’ This guy thinks he’s got a big d–. He’s got nothing, except maybe a boyfriend. I’m not a good enemy. I’m a very bad enemy. But certain things really–that bothered me plenty. It’s just that for some clerk to make a decision based on what, your own personal feeling about whether or not they’re a good credit? Who the f– asked you? You’re not an elected officer. You’re a clerk. Believe me, you’re a clerk. I want to open up on this f—-r, that’s all I can tell you.”)

1:32 Though I’m digging Jim’s extreme brevity (“I don’t have an opinion,” “No,” “Ask Alan”), this is getting boring. While we wait for things to pick up, just going to throw this very much relevant question out there. So last night, I had some people over to get myself in the Jimmy Cayne Frame of Mind. It’s decided that we should order milkshakes and I pull up a menu for the only place delivering at that time. Am I a cheapskate for thinking $10/shake is a ridiculous amount to charge for one normal-sized shake? I called over there to place our order and was like, “Did MenuPages get this wrong? Is it really $10/shake?” and fully expected the lady to be like, yeah, that’s a typo or tell me you get ten shakes for it. We still got them of course but I still think this is an abomination and need to know if I’m off base here.

1:45 Peter Wallison: Mr. Cayne, what were these overwhelming “market forces” that caused Bear Stearns to bite the big one?

Cayne: Rumor, innuendo, I’m not going to use the word ‘conspiracy,’ but that was part of it.

2:05: Byron Georgiou, attempting to be a hero, brings up the fact that there’s a book by William Cohan in which Uncle Jim “said some unfavorable things about Tim Geithner,” and asks if JC remembers that. JC’s smirk tells us that he obviously he does remember [saying that Geithner "thinks he has a big dick," claiming Geithner got an erection when he opened the discount window and implying that TG is a homosexual] but Cayne evades the question by saying he’s never read the book and because this hearing is the biggest letdown OF ALL TIME, Georgiou doesn’t read him the passage aloud and simply moves on. WHERE IS CLAIRE MCCASKILL WHEN WE NEED HER?

2:07 In case you were wondering, Jimmy doesn’t read Rolling Stone either, so he can’t answer any questions about Matt Taibbi, except to say that he heard about the horse semen and thought that was a pretty good prank. (This dialogue also begs the question, what does Jimmy Cayne read? Hustler, sure, but anything else?)

2:15 The ten minutes of JC and AS throwing the “rumors” “hedge funds” “shorts” “people wanted to take us down” “$20 puts” but refusing to name-check that firm in Chicago and that other one in Stamford like you know they’re just dying to makes one wonder exactly what the managers of said firms promised Jimmy if he would keep his trap shut. Perhaps a ginormous bag of his favorite herbs? One so big and sweet that it caused fantasies like this? (The following is footage obtained from the Jimmy Brain Cam, which played on loop throughout the hearing):



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Source: Dealbreaker | 5 May 2010 | 10:10 am

Knightley on European Debt Crisis, Choudhry on Euro (Correct)


Source: Bloomberg - All Podcasts | 5 May 2010 | 9:53 am

ADP Report: Small Business Isn’t Hiring

ADP just released its monthly private-sector employment report. The report says that “employment has increased for three straight months, albeit only modestly.” The Bureau of Labor Statistics’ monthly report, which comes out on Friday, will probably cite a sharp increase in jobs, thanks to Census workers.

The ADP report is compiled by Economic Advisors, LLC, a group whose founder, Lawrence Meyer, sits on the Board of Governors of the Federal Reserve System. In other words, ADP’s data is compiled thoroughly, but they’re not completely independent of the government. This is why I take any prognostications associated with their data with a grain of salt:

Private payrolls grew in April, while layoff announcements fell to a nearly four-year low, according to data released Wednesday. Private-sector jobs in the U.S. increased by 32,000 last month…Economists had expected a report of a job gain of 20,000 in April. The estimated change in employment from February to March 2010 was revised up, from a decline of 23,000 to an increase of 19,000. The ADP report now shows three consecutive months of job gains.

The latest ADP report showed large businesses with 500 employees or more added 14,000 employees and medium-size businesses hired 17,000 workers in April. Small businesses that employ fewer than 50 workers increased payrolls by a small 1,000.

Service-sector jobs added 50,000 last month, while factory jobs increased by 29,000. Construction jobs dropped 49,000 last month, bringing the total decline in construction payrolls since their January 2007 peak to 2.2 million jobs.

“Employment has turned the corner,” said Joel Prakken, chairman of Macroeconomic Advisers, “but gains remain muted.”

I’m concerned that small business still appears to be frozen. What’s stalling it? Lack of consumer spending? Lack of bank lending? Something needs to give, otherwise I don’t see how the economy is turning any kind of corner.

Expect to see more positive spin on employment from the media after Friday’s BLS report.



Source: Business Pundit | 5 May 2010 | 9:41 am

Where Your Tax Dollars Will Go

Budget, 2020

This graph is from the CBO, which makes its projections based solely on current law.

For context, here's the spending breakdown for some of the big-ticket items in 2009, based on the numbers in this CBO report:

  • Defense, 18%
  • Social Security, 18%
  • Medicare, 12%
  • Medicaid, 7%
  • Interest, 5%

Hat tip: Mankiw

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Source: NPR Blogs: Planet Money | 5 May 2010 | 9:30 am

Trader Take: Comparing BP Gulf Oil Spill to Exxon Valdez (BP, XOM)

It may seem impossible to believe, particularly after two days of a bad broad tape, but investors and traders alike are treating BP plc (NYSE: BP) as if the worst of the oil spill fallout is now reflective in the share price.  What we did was compare the stock market move and the share price [...]

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Source: 24/7 Wall St. | 5 May 2010 | 9:28 am

Greek Strike Turns Deadly

Greek strikes, started by public sector employees to protest possible tax hikes and wage freezes, have turned deadly. Protesters threw a fire bomb at an Athens bank, killing three people. CNN has the story:

Police sirens and the smell of tear gas filled the streets around Greece’s parliament building Wednesday after protests against government spending cuts turned violent, then deadly. Three people died and at least four others were missing after a fire bomb hit a bank in central Athens, the Greek fire brigade told CNN. The victims, two women and a man, were bank employees, they said.

The protests happened amid a general strike by thousands of public sector workers unhappy with the austerity measures, which largely target them. Private sector workers joined them on the picket lines Wednesday, along with thousands of transport workers — which brought transportation services to a halt.

The European Union announced a €110 billion ($145 billion) aid package for Greece on Sunday. Soon after, Greek Finance Minister George Papaconstantinou announced the tough cost-cutting measures to meet European Union and International Monetary Fund conditions for the deal.

Police estimated there were 15,000 workers were on the streets of Athens, but unions said there were many more. Among them were teachers, bank employees and doctors.

See live protest coverage here (via Zero Hedge). Zero Hedge also writes:

America recently allowed passage of policies that would make Greek debt-to-GDP ratios seems like a midget in Liliput compared to the monster our own Treasury is about to spawn. Yet, as always, it isn’t until it is far too late to fix something proactively that the people of any country, be it Greece or the US, wake up from their deep slumber. Greece has now officially woken up. We wonder how long before America does the same.

Or Spain, or Portugal, or the host of other countries facing a similar mess. I’d wager on Americans waking up last or not at all, since we seem to have more sedative capacity than other countries.



Source: Business Pundit | 5 May 2010 | 9:06 am

Where Women Spend Their Money

where women spend their money
Women make up 70% of all consumer spending in the United States. You may be surprised where their money goes.

Embed the image above on your site




Source: Business Pundit | 5 May 2010 | 9:05 am

Paul Friedman Takes Back His Blame of Mismanagement at the Top of Bear Stearns



Paul Friedman, a former senior managing director at Bear Stearns, once famously said “we did this to ourselves. . . . It’s our fault for allowing it to get this far, and for not taking any steps to do anything about it.” He told William D. Cohan there was “mismanagement at the top” of the firm.

But now, Freidman is taking back his words. “I was interviewed at a time when I was looking for someone to blame,” he told the Financial Crisis Inquiry Commission. “I’m sure you’ve read things where I blamed people I’ve never even met. It has bothered me for two years” he said. “I am human.”

It appears that all the former Bear executives have decided to coordinate their stories, blaming the collapse of the firm on fears, unsubstantiated rumors and innuendo. Freidman said there was nothing he could have done to save the firm from this fear-mongering.

“Bear Stearns was the smallest of the major investment banks, and I do not believe that obtaining more long-term secured financing or making any other changes in Bear Stearns’ funding strategies would have enabled the firm to overcome these unprecedented market forces or withstand the liquidity crisis that the firm experienced in March 2008,” he said in his testimony.

(Read all of the testimony to the FCIC here.)




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Bear Stearns - Financial Crisis Inquiry Commission - William D. Cohan - Investment banking - Business
Source: Dealbreaker | 5 May 2010 | 9:01 am

Is Wind Power Getting Stronger? (On the Street)

With Google getting into the game, a look at wind power.



Source: SmartMoney.com | 5 May 2010 | 8:54 am

Top Stocks from Top Managers (BAC, CMCSA, RF, CIT, C, AFL, NWS, KO, SYY, BCR)

Many investors chase famous and well-known portfolio managers’ newest stock picks.  After all, if you can piggyback on Warren Buffett, Bruce Berkowitz, and others… why not?  Morningstar has shown some of its top managers as Fairholme, Yacktman, Columbia Value & Restructuring, Dodge & Cox, and Hartford Capital Appreciation.  More importantly, it has shown some of [...]

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Source: 24/7 Wall St. | 5 May 2010 | 8:31 am

Don't Pay Your Fare On The Subway? There's Insurance For That

By Jacob Goldstein

Groups of free riders on the Paris Metro have created informal insurance pools that pay the fine when riders get caught. The groups call themselves mutuelles des fraudeurs -- fraudster mutuals.

The fraudsters pay into a into a central fund. Then, whoever gets caught riding for free can draw from the fund to pay the fine, which starts at about $75.

Insurance costs about $10 a month, the Guardian reports. That compares to about $75 a month for an all-access pass.

The groups make the (transparently self-serving) argument that they are making a political statement. "Transport should be a free public service like health and schools," a free rider told the Times of London.

Politics aside, the fraudsters are simply making a rational economic decision based on the fact that, even with occasional fines, free riding is cheaper than paying to ride.

Changing this equation would be pretty straightforward. You could either lower the price of Metro tickets, raise the fine for free riding, or increase the number of Metro inspectors, so free riders would get caught more often.

Hat Tip: Marginal Revolution

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Source: NPR Blogs: Planet Money | 5 May 2010 | 7:24 am

Top Day Trader Alerts (ACAS, BZH, BP, GMRN, ITMN, MPEL, MYGN, OSIR, RYAAY)

Many stocks are on the move this morning, and not all from earnings.  The top day trader and active trader alerts are in American Capital, Ltd. (NASDAQ: ACAS), Beazer Homes USA Inc. (NYSE: BZH), BP plc (NYSE: BP), Garmin Ltd. (NASDAQ: GRMN), InterMune Inc. (NASDAQ: ITMN), Melco Crown Entertainment Limited (NASDAQ: MPEL), Myriad Genetics Inc. [...]

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Source: 24/7 Wall St. | 5 May 2010 | 6:56 am

Are We in for a Market Correction? (Market Update)

WHAT'S HAPPENING NOW: With contagion fears spreading, bank stocks and others are at risk.



Source: SmartMoney.com | 5 May 2010 | 6:14 am

American Coffee Tastes


Image: DoYouKnowFlo



Source: Business Pundit | 5 May 2010 | 4:57 am