TOP NEWS: Economy: July 19, 2012
- GOP Says Further Fed Action Could Hurt Economy
- Libor Reported as Rigged In ‘08 Proving 2012’s Revelation
- US Jobless Claims Rebound to 386,000
- Despite Financial System, Threats to Market Stability Cited
- For the US Economy the News is Bad and Worse
Excerpts and more top stories
Binyamin Appelbaum, NY Times – House Republicans pressed the Federal Reserve chairman, Ben S. Bernanke, on Wednesday to forswear additional actions to stimulate growth, warning that the results would be counterproductive.
Kristina Peterson & Michael R Crittenden, WSJ – Federal Reserve Chairman Ben Bernanke told lawmakers Wednesday it was “certainly possible” that the central bank could take new steps to support the economic recovery if the jobs market doesn’t show gains.
John Dretrixhe, Bloomberg – Barclays Plc’s admission that it rigged the London interbank offered rate shows regulators, central bankers and politicians weren’t paying attention when everyone from Citigroup Inc. to the Bank for International Settlements indicated that the measure was being manipulated.
Alex Klein, Newsweek – According to newly released documents, Tim Geithner and other U.S. authorities were aware of international rate-fixing as early as 2007, reports Alex Klein.
Donal Griffin, Bloomberg – Wall Street, grappling with mounting regulatory probes and investor claims over alleged interest-rate manipulation, may face yet another formidable foe: Itself.
Anjli Raval, Financial Times – US jobless claims rebounded last week to levels consistent with the trend of recent months after seasonal factors caused a sharp drop the week before.
Dan Fitzpatrick & Suzanne Kapner, WSJ – Global financial companies are preparing to chop thousands of banking and trading jobs, signaling their latest retreat in the face of nervous markets, uneven economic growth, tougher regulations and slumping stock prices.
Edward Wyatt, NY Times – The biggest threats to American financial markets’ stability include uncertainty about the euro zone nations, the “fiscal cliff” that the United States faces at year-end, and continued weakness in housing, a panel of federal regulators said Wednesday.
Mortimer Zuckerman (TCG Member & Guest Speaker), US News – The real unemployment rate is around 15 percent and we’re only setting ourselves up to make it worse.
Shobhana Chandra, Bloomberg – The most Americans in six months said the economy in July was getting worse, indicating the slowdown in hiring is dimming moods as the third quarter begins.
HOUSING: Housing Stirs but Economy Slows
Neil Shah, Jie Jenny Zou, & Nick Timiraos, WSJ – The U.S. economy is downshifting, even as the housing sector is finally showing signs of life.
Christopher Matthews, TIME – While Ben Bernanke spent the past couple days on Capitol Hill delivering some dour predictions for U.S. economy, the one sector in America actually pulling its weight these days — housing — had a pretty good week.
HOUSING: Facing Forclosure After 50
Robbie Brown, NY Times – Once viewed as the most fiscally stable age group, older people are flailing. On Wednesday, AARP released what it described as the most comprehensive analysis yet of why the foreclosure crisis struck so many Americans in their retirement years.
STOCKS/SEC: Not All Investors Are Equal
Editorial, NY Times – In the Facebook fiasco in May, brokerage firms that sold Facebook’s initial shares apparently warned large investors about doubts from analysts regarding the company’s prospects. Many ordinary investors who were not warned sustained considerable losses. The Securities and Exchange Commission is investigating the disclosures.
Steven Mufson, Washington Post – The economy is booming in western North Dakota thanks to oil that is being extracted from a geological formation called the Bakken. People from across the country have flocked to the state to fill jobs in the oil industry. But new housing is not being built fast enough to keep up with this growth, making it difficult for newcomers to find affordable places to live.
INVESTMENT BANKING: Morgan Stanley Profit Misses Estimates as Revenue Falls
Michael de la Merced, NY Times – Morgan Stanley said on Thursday that it swung to a profit in the second quarter, but its revenue fell as the firm contended with the doldrums that have descended on the banking industry.