Economy | News-Opinion
TOP NEWS: Economy: August 31st, 2012
- Bernanke Signals Readiness to Do More
- Corporate Probation: Punishing Or Punting?
- Shell gets partial drilling go-ahead off Alaska coast
- Jobs Outlook Remains Tepid
- Why Apple needs to lose
Excerpts and More Top Stories
FED/QE3: Bernanke Signals Readiness to Do More - WSJ
Federal Reserve Chairman Ben Bernanke offered up a robust defense of the effectiveness of the central bank’s easy money policies and left little room for doubt that he is looking toward doing more as the Fed prepares for a September policy meeting.
FED QE3: QE 3? Fiscal Cliff Could Paralyze Fed Action – Fiscal Times
MERRILL GOOZNER: with unemployment stuck at 8.3 percent and most economists predicting growth in the second half at or below last quarter’s ho-hum 1.8 percent, jackson Hole would seem like the ideal place to signal the Fed will soon step on the gas and give the economy another shot of monetary easing.
FED: Dallas Fed Warns Against ‘Ultra Easy’ Money - BUSINESSWEEK
Peter Coy: A new report from the Federal Reserve Bank of Dallas warns that “there are limits to what central banks can do.” The paper’s title says it all: “Ultra Easy Monetary Policy and the Law of Unintended Consequences.”
*MORE FED NEWS AND ANALYSIS BELOW
FED: Bernanke Leaves Little Doubt He’s Gearing Up to Do More - WSJ
Federal Reserve Chairman Ben Bernanke offered up a robust defense of the effectiveness of the central bank’s easy money policies and left little room for doubt that he is looking toward doing more as the Fed prepares for a September policy meeting.
FED: More Fed Bond Buying Won’t Let ‘Animal Spirits’ Out of the Cage – WSJ, OPINION
Gerald O’Driscoll: If past is prologue, QE3 would act as a sugar rush to financial markets while spurring little if any growth.
FED: Watching the Bank of Bernanke - WP, OPINION
The Fed should be worth its weight in gold.
BANKING: Corporate Probation: Punishing Or Punting? – WSJ
U.S. settlement negotiations with banks being probed for interest-rate manipulation are fueling a debate over a popular government tactic that allows companies to avoid being indicted for criminal activities.
BANKING: J.P. Morgan Rankled by Risk - WSJ
J.P. Morgan Chase is reviewing its dealings with dozens of brokerages that use the bank to settle trades in an effort to reduce its risks.
ENERGY: Shell gets partial drilling go-ahead off Alaska coast - WP
The Interior Department is allowing Royal Dutch Shell to start limited preparatory activities for oil drilling off Alaska’s northwest coast.
JOBS: Jobs Outlook Remains Tepid - NYT
Moody’s Analytics continues to forecast that job growth in August will be faster than it was in the spring, but still in a range that points to a close election.
JOBS: Majority of New Jobs Pay Low Wages, Study Finds - NYT
The disappearance of midwage, midskill jobs is part of a longer-term trend that some refer to as a hollowing out of the American work force.
APPLE: Why Apple needs to lose - WP, OPINION
Vivek Wadhwa: If Apple wins Samsung’s anticipated appeal, it will escalate the patent wars and cause more innovative startups to get trampled.
RETAIL: Can Electronics Stores Survive? - WSJ, OPINION
Retailers like Best Buy, GameStop and RadioShack that not long ago were tops in their markets, now are fighting to relevance in a world where instant downloads and 24-hour online shopping have become the norm.
COMMODITIES: Broken Contracts Fray Cotton Market - WSJ
As cotton prices nearly tripled then fell by almost two-thirds, farmers and mills walked away from previously signed contracts in great numbers.
COMMODITIES: Soybean Futures Rise To Set Another Record - WSJ
U.S. soybean futures leapt to a record, buoyed by strong demand and concerns that global supplies will remain tight well into next year.
ECONOMY: Sentimental Journey for Households – WSJ, OPINION
With the unemployment rate at 8.3%, it is no surprise households feel glum. But that itself isn’t reason to worry the economy is going to turn south.
GOLD STANDARD: Would a Gold Standard Have Worsened the 2008 Financial Crisis? - FORBES, OPINION
Nathan Lewis: The basic reason for the financial crisis of 2008 was bank insolvency. The prospect of widespread and chaotic bank default loomed. A gold standard system may have prevented this…
SEC: Stanford Officials Face Civil Charges - WSJ
The SEC is set to charge former executives of convicted swindler R. Allen Stanford’s financial empire with civil securities violations.
BUFFETT CHARITIES: Buffett Doubles Donation to His Children’s Charities – WSJ
Warren Buffett celebrated his 82nd birthday by doubling his donation to his three children’s charitable foundations, pledging an additional $3 billion of stock in his Berkshire Hathway.
INVESTMENT: Stock-Picking Should Probably Be Left to the Professionals - NEW YORKER MAGAZINE
Kevin Roose: The SEC’s conclusion is fairly straightforward: “U.S. retail investors lack basic financial literacy … have a weak grasp of elementary financial concepts and lack critical knowledge of ways to avoid investment fraud.”
HEALTHCARE: From Physician Glut to Physician Shortage - NYT
Concerns about a doctor shortage — a questionable premise — might best be harnessed into seeking new efficiencies in how medicine is practiced.
REGULATION: A Third Option for Regulators in the Money Market Fund Fight - NYT
The Financial Stability Oversight Council can use a part of Dodd-Frank, called Title VIII, to address regulation of the plumbing of the financial system.
BUSINESS:
GOLDMAN: Goldman rethinks Dylan royalties bond - FT
Bond originally expected to price this month has been delayed until September as the tranche structure of the ABS deal is redesigned
SEARS: Sears Bucked From S&P - WSJ
The once-iconic retailer will lose its place in the market measure because its “public float,” or the number of shares that are in the hands of public investors, has hovered below a key threshold.
VIVENDI: Vivendi: Not Contemplating Breakup – WSJ
Vivendi ruled out the idea of an overall breakup of the company and said it is in no rush to sell assets, after better-than-expected second-quarter results eased investor pressure on the French media and telecommunications conglomerate to quickly change its strategy.
CARLYLE: Carlyle in $5.15bn deal for DuPont unit – FT
The US private equity group beats two other final bids for performance coatings division, which sells products to auto paint suppliers
SAIC: SAIC to split into two public companies - WP
The move repudiates a more recent strategy to unite SAIC’s multiple units.
GOOGLE: Google abandons TV ad ambitions - FT
After five years of trying to force the TV world to ‘go Google’, the search company has abandoned its scheme to trade broadcast ads as online banners.
GOOGLE: Google adds business-focused features to Google+ - WP
Features include restricted posts, video Hangout integration with Google Calendar, and better administrative controls.
BUSINESS/RETAIL: AT&T to open its 1st showcase store - WP
AT&T on Saturday will open the doors to a new flagship store in Chicago that isn’t quite like any of its 2,300 retail locations.
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