
If ever a man gave a cool and calm presentation at a press conference and got roundly trashed for it later, Jean-Claude Trichet, the president of the European Central Bank is that man. The markets were crashing, European leaders had not yet agreed their $1 trillion support fund for the euro and none of the commentators or assembled press had any idea that a package of this size was on the way. Neither, probably, did Trichet, who was giving…

On Thursday May 6th the Dow had its biggest ever intraday fall and for 90 seconds the stock market went completely bananas. According to MSNBC, reporting on a blog from the Washington Post, some well known stocks were briefly worth zero, nada, nothing, during that 90 second period of mayhem, while auctioneers Sotherby’s enjoyed a brief stellar moment where their share price translated into market cap would have given them a $6 trillion value…

In Part 1 we looked at EU President Barroso’s warning to the ratings agencies. A day after President Barroso’s speech, Jean Claude Trichet, the President of the European Central Bank faced some hostile questioning from the world’s financial and political press (see the webcast) and the subject of the ratings agencies again came to the fore. Unlike Barroso, however, Trichet did not venture voluntarily into this particular battle. He was pushed and prodded…

Nouriel Roubini, the New York-based economist who can justly claim to having foreseen the crisis, has proposed a comprehensive list of 10 reforms to limit the chances of such a cataclysm occurring again. The proposals, outlined in Roubini's new book, Crisis Economics: A Crash Course in the Future of Finance, co-authored by Stephen Mihm and published yesterday by Penguin, include an overhaul of securitization, a ban on CDOs, the shifting…

It has been an interesting week, in the full sense of the Chinese curse, for the big ratings agencies. They have had their cages publicly rattled by two European heavyweights, the President of the European Central Bank, Jean Claude Trichet, and the President of the European Union, José Manuel Durão Barroso. Part 1 of this blog focuses on Barroso’s attack. Part 2 will consider remarks made by the ECB president. President Barroso made it quite clear…

The economist Nouriel Roubini is astonished that, even though the market-fundamentalist, laissez-faire belief system that dominated economic and political thinking for most of the past five decades is now utterly discredited, nothing has yet emerged to take its place. In his new book, Crisis Economics: A Crash Course in the Future of Finance, Roubini argues that policymakers, bankers and economists allowed themselves to be seduced by…

Hope triumphed over fear with last Sunday night's dramatic €720bn ($1 trillion) EU/IMF intervention to prop up the eurozone, but there remain widespread suspicions that this solution—dubbed the biggest bailout in history—may yet prove too little too late to save the eurozone. Even after news of the EU/IMF package, which wrongfooted investors who were betting on a Greek default, dribbled out from Brussels on Sunday night and Monday morning…

Just about the time we were all going through the bubble phase of the dot.com era, a time when technology had an extremely favorable wind behind it, a mid to big business IT solution that had been gaining traction for years really took off. This was Customer Relationship Management, or CRM. The basic idea was simple. Small businesses knew their customers. Medium to big business lost touch with customers and tended to focus on…

The internal correspondence from inside Goldman Sachs amassed by the Senate’s Permanent Sub-Committee on Investigations makes for shocking reading—which must be deeply embarrassing for Goldman Sachs and the managing directors concerned. The voluminous evidence, including memoranda, personal emails and credentials presentations, would (almost) be enough raw material for someone wanting to write a book or a film script…

An anonymous memo is doing the rounds of Wall Street and the City of London. It could be a spoof. But it does have the ring of authenticity. In the memo, a peeved Wall Streeter rails against attempts by President Barack Obama's administration to cramp his style by reining in the wild beasts of finance. The writer issues a stern warning to the rest of America ("Main Street"). He or she basically argues that if Wall Street is to be "knocked off the top of…
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