TOP NEWS: Economy: May 21, 2012
- Dimon’s Déjà Vu Debacle
- JPMorgan CIO Risk Chief Said To Have Trading-Loss History
- Don’t De-Friend Facebook Yet: Its IPO Might Not Mean Trouble Ahead
- A Greek Exit? Euro Zone May Be Ready
- Obama Pursues Higher Tax Rates, Growth Be Damned
Excerpts and more top stories
Dimon’s Déjà Vu Debacle -Paul Krugman, NY Times
Sometimes it’s hard to explain why we need strong financial regulation— especially in an era saturated with pro-business, pro-market propaganda. So we should always be grateful when someone makes the case for regulation more compelling and easier to understand. And this week, that means offering a special shout-out to two men: Jamie Dimon and Mitt Romney.
JPMorgan CIO Risk Chief Said To Have Trading-Loss History - Lisa Abramowicz and Dawn Kopecki, Bloomberg
Irvin Goldman, who oversaw risks in the JP Morgan Chase & Co. (JPM) unit that suffered more than $2 billion in trading losses, was fired by another Wall Street firm in 2007 for money-losing bets that prompted a regulatory sanction at the firm, Cantor Fitzgerald LP, three people with direct knowledge of the matter said.
Don’t De-Friend Facebook Yet: Its IPO Might Not Mean Trouble Ahead – Zachary Karabell, Newsweek
Facebook’s epically hyped IPO debuted not with a bang but with a whimper. While the company sold $16 billion worth of initial shares, the stock ended the day largely where it began, at $38 a share, leaving the company with a market cap of about $100 billion. The offering was widely derided by the Wall Street community of traders, who viewed the stock’s failure to soar on day one as a sign of troubled times ahead for Facebook.
A Greek Exit? Euro Zone May Be Ready - Binyamin Appelbaum, NY Times
It is increasingly conceivable that Greece may leave the euro zone, not just because of its own political dysfunction but also because the consequences of such an exit for the rest of the Europe and the global economy no longer seem quite so scary.The foot-dragging and brinkmanship of the last few years have won the other members of the currency union valuable time to prepare for life without Greece. Banks have recorded losses on Greek investments, companies are making contingency plans and Europe has bolstered rescue funds for other vulnerable nations like Portugal, Ireland and Spain.
Obama Pursues Higher Tax Rates, Growth Be Damned - Michael Barone, RealClearPolitics
In the run-up to this weekend’s G-8 summit at Camp David, journalists have unfavorably compared European “austerity” with Barack Obama’s economic policies. European spending cuts, the argument goes, have hurt people and are arousing political opposition, while Obama’s proposals to keep federal spending at 24 percent of gross domestic product indefinitely are likely to succeed.
Growth Dilemma Dogs G-8 - Stephen Fidler and Sudeep Reddy, WSJ
Pressure mounted on Germany to soften its opposition to growth-promotion efforts at a weekend summit of leaders of major economies, as momentum gathered for another idea to ease Europe’s debt crisis that Berlin has long resisted—the issuing of common bonds by euro-zone governments.The meeting of leaders of the Group of Eight at the U.S. presidential retreat here ended with a message, reinforced by President Barack Obama, that growth is a priority—particularly in the beleaguered euro zone, where austerity measures have left economies battered and raised questions about whether some governments will be able to service their debts.
Hey, Krugman, Ask China If Stimulus Is A Good Idea - Gordon G. Chang, Forbes
On Friday, Paul Krugman once again made the case to the Obama administration for more stimulus, calling for $300 billion a year in additional spending “until the economy is back on its feet.” And the resulting debt? “This is not an urgent crisis,” he assured CNN’s Erin Burnett. “Yeah, give me an economic recovery, I’ll become a fiscal hawk, but not now.”
US Swing States’ Jobless Rates Dive In April - Lisa Lambert, Reuters
Jobless rates in all but two U.S. states dropped in April from a year before, and were sharply lower in battleground states that could decide November’s presidential contest.
Sharp drops in unemployment rates were registered in Florida, Nevada and Ohio, while joblessness in Michigan, a key state in the election four years ago, hit its lowest since 2008.
Dow, S&P 500 Open Higher As Economists See Growth For Jobs and Housing - Richard Drew/Associated Press, Washington Post
Stocks are opening higher on Wall Street after a new survey suggested that economists are more optimistic about housing and employment. Facebook slid below its initial offering price. The Dow Jones industrial average rose 37 points to 12,406 shortly after the opening bell Monday. The Dow hasn’t had an up day in more than a week.
Voters Split on Obama, Romney Economic Strengths - Byron Tau, Politico
Voters trust President Obama over Mitt Romney to rein in the cost of health care, keep college affordable and help improve living standards for the poor, according to a survey released Monday. By contrast, voters think Romney would better reduce the federal deficit, grow the economy, and get the markets moving again.
Boehner Defends Call for Spending Cuts -Damian Paletta, WSJ
House Speaker John Boehner (R., Ohio) defended his demand for large spending cuts in exchange for a vote to raise the debt ceiling, telling ABC’s “This Week” that “I’m not going to apologize for leading.”