europe

The world is coming to an end but we can share it on Facebook?

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Reasons why Facebook marks some kind of weird market top. 1.Round the clock coverage on CNBC and Bloomberg about the Facebook IPO and how much money everyone is making. 2.The largest tech (maybe any IPO) in history. 3. People you know that you didn’t know ever bought a stock, asking if you could get them some Facebook stock. 4.Savy insiders selling enormous stakes.  Who cares if Goldman keeps half. At the valuation they’re getting the 50% remaining is all a free toss of the dice. 5. Billion dollar side deals for companies with no revenue to speak of. 6. The … Read more

JP Morgan: Derivatives Now A Great Way To Lose Two Billion

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With the bank down over 8% on the announcement of at least $2 billion in expected losses, JP Morgan’s Jamie Diamond has some explaining to do.  And simply saying that the incident “puts egg on their face” isn’t cutting it.  The massive trading loss stemmed in part from a failed hedging strategy and derivatives bets placed by a large trader better known as the “London Whale.”   Known for a high level of risk management, JPM’s lack  of diligence does not inspire confidence in an already shaky sector with a looming European crisis on its hands. According to Sterne Agee … Read more

‘ U.S. units

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(Reuters) – The Federal Reserve Bank is taking a closer look at the U.S. units of Europe’s biggest banks, concerned that a euro zonedebt crisis could spill into the U.S. banking system, the Wall Street Journal reported. The $2.5 trillion U.S. money market funds industry — which supplies short-term dollar funding to banks — has retreated from the euro zone in recent months, concerned that the continent’s debt crisis is spiraling out of control. That and the drying up of interbank lending has led to a trebling of dollar funding costs for euro zone banks in the last month. One … Read more

Money Managers Seek to Profit from Europe’s Woes

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Money Managers Seek to Profit from Europe’s Woes They’re buying downgraded bonds and betting on a slowdown Illustration by Oliver Munday When Moody’s Investors Service (MCO) downgraded Ireland’s sovereign debt to junk status on July 12, a week after giving Portugal’s debt similar treatment, it came as no surprise to Sandor Steverink. Europe’s best-performing government bond fund manager over the last decade, Steverink predicted both downgrades. Soon it will be time to buy, he says. “What we’ve learned from emerging markets is that you get only a full recovery after a proper restructuring,” says Steverink, who is co-head of a … Read more