Monthly Archives: January 2012
EL-ERIAN: We’re Suffering From ‘A Crisis In Capitalism’
“Most everyone agrees the global capitalist system has failed on two main counts–growth and fairness, writes PIMCO CEO Mohammad El-Erian in a column published today in the Financial Times.
He argues that continuing failure to address both (not just one) of these problems not only constitutes a “crisis,” but “raises legitimate questions about the model itself.”
If the system is going to continue, three things have to happen:
- Capitalism is prone to occasional market failures, and the world has to accept this.
- Global imbalances, created by the rise of countries like China, have become unsustainable and must be addressed.
- Global institutions must transform to fairly represent the global population in order to adequately recognize and deal with problems.
He concludes:
Each of these areas can be corrected. Theoretically at least, what has occurred is less a calamity of the system as a whole, and more an issue of how it was run. Yet, four years into the crisis, little has been done to repair the damage coherently and comprehensively and to safeguard the real victims, let alone counter the risk of further costly dislocations. Until this is done, it will be difficult to convince the world that capitalism itself is not the problem.
Read El-Erian’s full editorial here >“
Comments »10 Reasons Why the Bears are Dead
More Conflicts of Interest Related to Mortgage Banks Arise Within the Justice Department
GM Returns America to Being the King of Sales
Toxic Asset Bonuses Turn Out to Be as Good as Gold
The Euro Falls a Smidgen as Greek Bond Talks Continue
Banks Seeking Autonomy May Spurn State Bailouts
Lagarde Sounds the Austerity Alarm Ahead of Davos
Preliminary Results Show Further Contraction in Chinese Manufacturing; Doves Hopeful of Easing
The Israelis and U.S. Military Officials Meet to Discuss Iran
The Aussie and Kiwi Currencies Celebrate a Fifth Week of Gains
Samsung Earnings May Benefit From Apple’s Slow iPhone Shipments
Apple had missed some shipments of the i Phone 4s and their store front was pelted with eggs for it in Beijing. Perhaps Samsung will benefit from this in their next q.
Comments »Sony’s Credit Rating Cut to Baa1
Inflation Grows Less Than Expected in Canada
The Bears Have Fled the Copper Market; Largest Rally Since ’87
“Copper traders are the least bearish in a month as the metal has its best start to a year since at least 1987 and stockpiles tracked by the world’s biggest metals exchange were poised to slump to the lowest in 3 1/2 years.
Fourteen of 30 analysts surveyed by Bloomberg expect the metal to decline next week, the lowest proportion since Dec. 23. Three were neutral. Prices reached a four-month high of $8,428.50 a metric ton today, taking this year’s advance to 11 percent. Inventories (LSCA)tracked by the London Metal Exchange are already the smallest since December 2010 and existing orders to withdraw metal may reduce that to the lowest since July 2009.”
Comments »European Bonds Already Show Measures Thus Far are Just Temporary
Asia Rallies Nicely While Europe and U.S. Futures Digest Slightly Under the Unch Line
GE Misses
GE earns 38 cents vs. 39 cent est. Revenue of $38b vs $40b. Cites slowing environment in Europe and tough U.S. appliance mkt.
Comments »Schlumberger net up 35%, revenue up 21%
NEW YORK (MarketWatch) — Schlumberger Ltd., SLB -0.08% the Houston energy-services firm, reported fourth-quarter net income rose 35% on 21% higher revenue. Earnings reached $1.41 billion, or $1.05 a share, from $1.04 billion, or 76 cents, in the year-earlier quarter. Full report
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