Street Talk

Top Stories

• Larry Summers: I See ‘Virtuous Circle’ Building in US Economy
  The U.S. is looking so good that improving economic indicators will build upon themselves, with rising employment pushing incomes up, which in turn will boost consumer spending which will create even more jobs and so on, says former Treasury Secretary Larry Summers.
• US on Pace for $1 Trillion Deficit Despite January Dip
  The federal deficit was lower through the first four months of the budget year than the same period last year.
• S&P 500 Snaps Five-Week Advance Amid Concern About Greece Rescue
  U.S. stocks fell, snapping a five- week-rally for the Standard Poor s 500 Index, amid concern plans to help Greece avoid default were unraveling and as confidence among American consumers dropped more than forecast.
• Underwater? Some Banks Paying People to Leave Homes
  The markets are abuzz with the news that the banks will ante up to help some borrowers reduce their payments under a $25 billion government-backed foreclosure abuse deal.
• Obama Mortgage Plan Seen Helping 'Small Number' of Homeowners
  Millions of American homeowners were likely excited when they first learned of the $26 billion mortgage settlement reached by banks and government officials. But on second view, they may not be so happy.
• Jim Rogers: I Am Wary of Stocks Despite Roaring Markets
  Stocks may be up this year but investors should be wary, as a sound economy isn't pumping up share prices but rather Federal Reserve meddling is inflating the asset class, says international investor Jim Rogers.
• Bernanke: Weak Housing Has Hurt Consumer Spending
  Federal Reserve Chairman Ben Bernanke on Friday issued a call to action to restore U.S. housing markets, saying depressed house prices and sales are a serious drag on the economic recovery.
• George Mason Professor: Mortgage Deal Has ‘No Economic Purpose’
  The $25 billion foreclosure-abuse settlement between major banks and state attorneys general is steeped in politics, Fox Business Network reported.
• BlackRock's Fink: Stocks Call Intended to Get Cash Off Sidelines
  BlackRock Inc. s Laurence D. Fink, who urged investors this week to put all their money in equities, said his call was aimed at getting cash back into the capital markets.
• Pimco: $25 Billion Foreclosure Deal to Hit Pensions Harder Than Banks
  The government s deal with banks over their foreclosure practices after 16 months of investigations is cheap for the loan servicers while costly for bond investors including pension funds, according to Pacific Investment Management Co.'s Scott Simon.
• Pew Research: Fewer Young Adults Hold Jobs Than Ever Before
  Fewer young adults have jobs than since the government started keeping records just after World War II.
• David Dreman: High Frequency Traders Are Vultures
  Legendary stock investor David Dreman doesn't think too highly of high-frequency stock traders.
• Bankruptcy Lawyers: Student Loans May Be 'Next Debt Bomb for US'
  Student loans are swelling so much that they could threaten the country's financial sector in a manner similar to the mortgage meltdown of a few years ago, warns a report by the National Association of Consumer Bankruptcy Attorneys.
• Entrepreneur Bob Davids: CEOs Should 'Leave Ego at the Door'
  Chief executive officers need to leave their egos at the door because micromanaging only works against a company's progress, and not for it, says entrepreneur and business creator Bob Davids.
• David Rosenberg: I Am Bearish Because Govt Tactics Kill Growth
  Government spending and regulations will kill off any chances of stocks turning as bullish as many high-level market watchers are predicting, says David Rosenberg, chief economist at Gluskin Sheff.
• Fed Plays Wall Street Favorites in Secret Bond Deals
  The Federal Reserve secretly selected a handful of banks to bid for debt securities acquired by taxpayers in the U.S. bailout of American International Group Inc., and the rest of Wall Street is wondering what happened to the transparency the central bank vowed.
• Buffett: US Bonds Are 'Dangerous,' Should Have 'Warning Label'
  Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc., said low interest rates and inflation should dissuade investors from buying bonds and other holdings tied to currencies.
• Fitch Director Reiterates View That Greece Will Default
  Fitch Ratings is reiterating its view that Greece will default, Tony Stringer, managing director of global sovereigns, said in Singapore Friday.
• Pimco's Gross Loads Up on Treasuries in Total Return Fund
  Pacific Investment Management Co.’s Bill Gross increased his holdings of Treasuries to the highest level since July 2010. Gross boosted the proportion of U.S. government and Treasury debt in Pimco’s $250.5 billion Total Return Fund in January to 38 percent from 30 percent....
• Sachs Says Krugman Is ‘Crude Keynesian’ on Spending
  Nobel-prize winning economist Paul Krugman isn t paying enough attention to growing U.S. government debt as he promotes deficit spending, Columbia University professor Jeffrey Sachs said.
• Barton Biggs: Low Volume Means Bull Run May Last
  Stock trading around the world fell to the lowest level since at least 2006 even as global equities entered a bull market, a sign to Barton Biggs that the rally has further to go.
• El-Erian Says Greece Agreement Likely Questionable
  The agreement likely struck by Greek political leaders today may be analytically questionable, according to Pacific Investment Management Co. s Mohamed A. El- Erian.El-Erian, chief executive and co-chief investment officer of the world s biggest manager of bond funds,...
• Bove: 'Mortgage Deal From Hell' Punishes Responsible Homeowners
  A "mortgage deal from hell" between federal and state governments with big banks under which the latter will fork over more than $25 billion to aid struggling homeowners will do mainly one thing: punish responsible borrowers, says banking analyst Dick Bove.
• Byron Wien: US Treasury Bonds Are Popular Due to Global Fear
  U.S. Treasurys have become a popular investment mainly due to fear gripping markets and economies elsewhere in the world, says Byron Wien, vice chairman of Blackstone Advisory Partners.
• S&P: US Faces Another Downgrade Without Budget Plan
  The U.S., lacking a plan to contain $1 trillion deficits, faces the prospect of another rating cut in six to 24 months depending on the outcome of November elections, according to John Chambers of Standard Poor s.America has had an AA-plus rating with a negative outlook...

More Street Talk Stories