Video-o-rama: Fed employs nuclear option
Financial markets were dominated this week by the announcement by Fed Chairman Ben Bernanke to buy as much as $300 billion of long-term Treasuries and acquire an additional $750 billion of mortgage-backed securities. On the news, the US dollar plunged, the euro surged, Treasury yields nose-dived, gold bullion exploded, and stocks, oil and commodities gained handsomely. What an announcement, what a week!
A few of the more interesting video clips that attracted my attention are shared below. In addition to Bill Gross stating that the Fed’s purchases are still not enough, AIG remained in the news as payment of bonuses to its executives from bailout money stirred up emotions. This culminated in the House passing a bill to tax TARP bonuses by 90%.
As far as the stock markets are concerned, with indices running into resistance levels the debate intensified on how enduring the recent gains will be.
The video clips feature the likes of Bill Gross, Steve Forbes, John Lonski, Mario Gabelli, Ron Paul, John Bogle, Barry Ritholtz, Doug Kass, Gary Shilling, Meredith Whitney, Marc Faber, Jim Rogers and Stephen Roach.
John Authers (Financial Times): Fed’s shock and awe
“John Authers on market reaction to the Federal Reserve’s decision to buy $300 billion in long-dated Treasury bonds.”
Click here for the article.
Source: John Authers, Financial Times, March 18, 2009.
Bloomberg: Pimco’s Gross says more Fed buying needed to spur growth
“Bill Gross, co-chief investment officer of Pacific Investment Management Co., talks with Bloomberg’s Kathleen Hays about the Federal Reserve’s plan to buy more than $1 trillion in Treasuries and mortgage-backed securities in an effort to help revive the economy. Gross also discusses the Fed’s balance sheet, currency concerns and the need for a ‘healthy level’ of inflation.”>
Source: Bloomberg, March 19 2009.
60 Minutes: The Chairman – Ben Bernanke
“In a rare interview with a sitting Fed chairman, Ben Bernanke tells Scott Pelley what went wrong with America’s financial system, how it caused the economic crisis, what the Fed is doing to help fix it and when he expects the recession to end. If you think your job is tough, consider Ben Bernanke’s. As Chairman of the Federal Reserve, the task of reviving the US economy falls largely on his shoulders.
In Part 2 of the interview Bernanke candidly speaks to Pelley about his personal life, and how the current financial crisis is affecting Main Street America.
Source: 60 Minutes, March 15, 2009.
Bloomberg: Geithner says US to move quickly on “legacy assets”
“US Treasury Secretary Timothy Geithner talks with Bloomberg’s Lizzie O’Leary about the US government’s plan to ‘move very quickly’ on impaired ‘legacy assets’ clogging bank balance sheets. Geithner also discusses planned action by the Group of 20 nations to end the global recession, executive compensation and US cooperation with China. They talk following a meeting of the G-20 finance ministers and central bankers today in Horsham, England.”
Source: Bloomberg, March 14, 2009.
CNBC: Forbes – Geithner, Bernanke have “the slows”
“Ben Bernanke and Tim Geithner both have a bad case of ‘the slows’, Steve Forbes, Chairman & CEO of Forbes, tells CNBC’s Martin Soong. Both of them have been slow to take decisive action on the banking crisis.”
Source: CNBC, March 20, 2009.
The Wall Street Journal: Sorting through the latest batch of economic data
“John Lonski, chief economist at Moody’s Capital Markets, interprets the latest economic data on housing starts and the producer price index. MarketWatch’s Kelsey Hubbard reports.”
Source: The Wall Street Journal, March 17, 2008.
Bloomberg: Mario Gabelli sees stability returning to US economy
“Mario Gabelli, chief executive officer of Gamco Investors, talks with Bloomberg’s Betty Liu about the outlook for the US economy. Gabelli, who oversees more than $20 billion in assets, also discusses American International Group’s decision to award some of its traders $165 million in bonuses.”
Source: Bloomberg, March 17, 2009.
Charlie Rose: A conversation with Nancy Pelosi, Speaker of the House
Source: Charlie Rose, March 13, 2009.
Charlie Rose: A conversation about AIG
“A conversation about AIG with Hank Greenberg former chairman and CEO of AIG, Carol Loomis Senior editor-at-large of ‘Fortune’, Gretchen Morgenson of ‘The New York Times’ and Meredith Whitney.”
Source: Charlie Rose, March 18, 2009.
Bloomberg: Ron Paul says AIG bonus money was stolen from taxpayers
“US Representative Ron Paul, a Texas Republican, talks with Bloomberg’s Carol Massar about American International Group paying $165 million in bonuses to its executives after accepting a $173 billion government bailout. Paul also discusses the role of the Federal Reserve and his recommendations for tax policy and spending.”
Source: Bloomberg, March 17 2009.
CNBC: Bonus tax – good or bad?
“Discussing House voting on bill to tax TARP bonuses at 90%, with CNBC’s John Harwood; David Min, Center for American Progress; Stephen Moore, WSJ; and CNBC’s Erin Burnett.”
Source: CNBC, March 19, 2009.
CNBC: Bogle-izing the hedge fund industry
“Thoughts on an investable index for the hedge fund industry with John Bogle, The Vanguard Group founder/former CEO. On the bonuses paid to AIGFP, Bogle says, ‘Off with their heads’.”
Source: CNBC, March 18, 2009.
The Street: Inside Bear Stearns collapse
“In an extended interview, William Cohen, author of the bestselling book House Of Cards, reveals the truth about what happened during Bear Stearns’ final days.”
Source: The Street, March 14, 2009.
Forbes: Barry Ritholtz on whether the stock market is near the bottom
Source: Forbes, March 16, 2009.
The Wall Street Journal: Trying to call an enduring bottom
“Trying to call an enduring bottom Barron’s Mike Santoli says the market has seen a 12% jump in a week while fewer stocks have made new lows, eliciting calls that we’ve finally seen an enduring bottom. Is this being too optimistic?”
Source: The Wall Street Journal, March 17, 2009.
CNBC: Kass & Shilling – has the bottom bottomed?
“Douglas Kass, of Seabreeze Partners; Gary Shilling, of A. Gary Shilling & Co.; and CNBC’s Larry Kudlow discuss today’s market action.”
Source: CNBC, March 18, 2009.
CNBC: Forbes – suspend mark-to-market accounting
“Mark-to-market accounting should be suspended says Steve Forbes, Chairman & CEO at Forbes. He tells CNBC’s Martin Soong the reasons why and how this has been a bipartisan disaster.”
Source: CNBC, March 20, 2009.
CNBC: Meredith Whitney – credit crunch & financials
“Weighing in on consumer credit and why mark-to-market will not really help banks, with Meredith Whitney, Meredith Whitney Advisory Group CEO.”
Source: CNBC, March 17, 2009.
Bloomberg: Rogers, Faber, Cheng on gold’s outlook
“Marc Faber and Jim Rogers talk about the outlook for gold prices and their investment strategies. Gold’s failure to rally to a record in recent weeks disappointed some investors, analysts said. Last month, the price climbed to $1,007.70, the highest this year. The all-time high of $1,033.90 was reached on this date last year. Schroders plc’s Christopher Wyke, Credit Suisse Group’s Tobias Merath and World Gold Council’s Albert Cheng also offer their views.”
Source: Bloomberg, March 18, 2009.
Financial Times: Oil price crash shifts balance of power
“Carola Hoyos reports from the Opec seminar in Vienna on how the collapse in oil prices has shifted the balance of power between oil producers and consumers and the companies within the sector.”
Source: Financial Times, March 18, 2009.
CNBC: Can China achieve its 8% growth target?
“China is dreaming, says Marc Faber, editor & publisher of The Gloom, Boom & Doom Report, when asked whether it can hit its 8% growth target. Faber & Jerry Lou, China strategist at Morgan Stanley assess the road ahead of China’s economy, with CNBC’s Martin Soong.”
Source: CNBC, March 17, 2009.
RGE Monitor: China now expected to grow 6.5% in 2009
“In a series of downward revisions, the World Bank is the latest to reduce its forecast of 2009 economic growth in China. As with many export-led economies, China has been hit hard by the precipitous decline in export demand, falling 25.7% in February 2009. For this reason, the World Bank reduced its 2009 growth forecast for China 1% to 6.5%.”
Source: Rebecca Wilder, RGE Monitor, March 18, 2009.
CNBC: Roach – China needs internal demand
“China needs to change its structure to an internal demand driven economy, says Stephen Roach, chairman for Asia at Morgan Stanley. He tells CNBC’s Martin Soong & Amanda Drury that China is hugely dependent on external demand as a major source of economic growth.”
Source: CNBC, March 18, 2009.
Financial Times: Bank of England pins hopes on quantitative easing
“Roger Brown, global head of rates research at UBS, says the Bank of England is in effect creating cash to kickstart lending in the UK. However, he tells FT’s David Oakley that the Bank must increase the amounts involved.”
Source: Roger Brown, Financial Times, March 13, 2009.
YouTube: Gold for bread – Zimbabwe
“MDC activist Sam Chakaipa returns to his village in Zimbabwe to find his friends and neighbours starving. As the Zimbabwean dollar becomes ever weaker, gold has become the currency of choice.”
Source: YouTube, March 9, 2009.
